Market Outlook

October 09, 2015

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets are expected to open in positive tracking the SGX Nifty and the Asian

BSE Sensex

(0.7)

(190)

26,846

cues.

Nifty

(0.6)

(48)

8,129

U.S. stocks open in negative but reacted positively to the minutes of the Fed's

Mid Cap

(1.0)

(111)

10,945

September meeting, which further offset recent uncertainty about the outlook for

Small Cap

(0.1)

(17)

11,327

interest rates. The gains on the day extended a recent upward trend, with the Dow

Bankex

(0.8)

(156)

19,957

and the S&P 500 reaching their best levels in well over a month.

The European markets ended Thursday's session with mixed results. The markets

Global Indices

Chg (%)

(Pts)

(Close)

were under pressure in early trade, following the release of another weaker than

Dow Jones

0.8

138

17,051

expected German economic report. Germany's exports declined the most in over six

years in August, raising concerns over global demand.

Nasdaq

0.4

4,811

FTSE

0.6

6,375

Indian shares fell notably on weak global cues, a sharp rebound in oil prices

Nikkei

(1.0)

(182)

18,141

overnight, weakness in rupee and the IMF's warning concerning emerging

markets prompted traders to book some profits after six days of continuous gains.

Hang Seng

(0.7)

(161)

22,355

Investors also waited for minutes from the Fed's September meeting and speeches

Shanghai Com

3.0

3,143

from several Fed officials scheduled later in the day for further clues on the outlook

for Fed policy.

Advances / Declines

Bse

Nse

News Analysis

Advances

1,256

1,019

 Sun Pharma to focus on speciality products in US

Declines

1,502

482

 Cipla ties up with Serum Institute to supply vaccines in South Africa

Unchanged

111

 Crompton Greaves to divest shares in CG-Lucy Switchgear

Detailed analysis on Pg2

Volumes (` Cr)

Investor’s Ready Reckoner

BSE

3,092

Key Domestic & Global Indicators

NSE

15,866

Stock Watch: Latest investment recommendations on 150+ stocks

Refer Pg4 onwards

Net Inflows (` Cr)

Net

Mtd

Ytd

FII

801

897

118,962

Top Picks

MFs

157

634

79,639

CMP

Target

Upside

Company

Sector

Rating

(`)

(%)

Axis Bank

Financials

Buy

491

701

42.7

Top Gainers

Price (`)

Chg (%)

ICICI Bank

Financials

Buy

278

370

32.9

Renuka

8.4

Power Grid

Power

Buy

132

170

28.4

Rtnpower

5.0

TCS

Buy

2,635

3,168

20.3

Mcleodruss

172

4.9

Aurobindo Pharma Pharmaceuticals Accumulate

751

872

16.2

More Top Picks on Pg3

Muthootfin

180

3.5

Eidparry

145

3.1

Key Upcoming Events

Consensus

Date

Region

Event Description

Reading

Expectations

Top Losers

Price (`)

Chg (%)

Oct 12

India

Imports YoY%

(9.95)

Infratel

410

(4.7)

India

Exports YoY%

(20.66)

Pmcfin

(4.1)

India

Industrial Production YoY

4.20

Divislab

1089

(4.0)

Oct 13

CPI (YoY)

Glenmark

993

(3.8)

Oct 14

India

Monthly Wholesale Prices YoY%

(4.95)

Ibulhsgfin

755

(3.8)

Oct 15

Industrial Production

(0.38)

(0.30)

As on October 08, 2015

www.angelbroking.com

Market Outlook

October 09, 2015

Sun Pharma to focus on speciality products in US

Sun Pharma aims to enhance its presence in specialty product segment in the US.

The company derives 50% of its consolidated revenue from US market. Sun

Pharma continues to strengthen and build leadership position in key markets and

business segments. As a part of the focus towards enhancing share of

specialty/branded business and targeting differentiated product offerings, the

ophthalmic and OTC teams in the US have been strengthened. The company also

acquired exclusive rights to Merck's skin ailment drug which is under trial.

Currently we maintain our neutral rating on the stock.

Cipla ties up with Serum Institute to supply vaccines in South

Africa

Cipla has tied up with Serum Institute of India to distribute vaccines in South Africa.

The company operates in South Africa through a subsidiary and the market

contributes to about 14% of its consolidated revenue. The tie up will enable Cipla

Medpro to grow its revenue and facilitate regular supply to the South African

government. This will help company to become a significant player in the market.

With presence in 140 countries and 1.3 billion doses manufactured and sold,

Serum Institute of India is an ideal ally for Cipla Medpro and this partnership will

be instrumental

addressing

the

national

vaccine

shortage.

These companies already have a tie up for distribution of paediatric vaccines in

Europe. Currently we maintain our neutral rating on the stock.

Crompton Greaves to divest shares in CG-Lucy Switchgear

Crompton Greaves (CG) announced the divestment of its entire 50% shareholding

in CG Lucy Switchgear Limited to W Lucy & Co Limited, UK. The company will

divest its entire investment of `60 lakh in the share Capital of CG Lucy Switchgear

Limited (CG-Lucy) to W Lucy & Co Limited, UK for a consideration of Euro 5.5

million (approx `40cr) and the execution of consequent definitive agreements. CG

Lucy Switchgear Ltd is a 50-50 joint venture between CG and W Lucy and Co

Limited, UK. This JV has a factory situated in Nasik (Maharashtra) and is a

manufacturer for Ring Main Units (RMUs) for the India market. Post divestment,

CG will continue to have distributorship of RMUs in India and will also continue to

supply vacuum bottles and other products to CG-Lucy. The deal forms part of CG's

strategy to focus on its B2B activity in the Power HV sector. We maintain our buy

rating on the stock.

Economic and Political News

 MERC revises eligibility for open access from 1 MW to 500 KW in draft

regulations

 Global IT spending to surpass $3.6 tn in 2016: Gartner

 Payment of $700 mn to Iran won't impact currency market: RBI

Corporate News

 Large companies need to embrace start-ups: Accenture

 Platinum 3G to widen Bharti Airtel's biz coverage in MP, Chhattisgarh

 Why fresh tests on Maggi, asks Nestle India

www.angelbroking.com

Market Outlook

October 09, 2015

Top Picks ★★★★★

Large Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Robust US sales along with the acquisations, will aid the growth

Aurobindo

43,829

751

872

16.2

and stable margins.

Healthy pace of branch expansion, backed by distribution

Axis Bank

1,16,836

491

701

42.7

network.

Robust franchise and capital adequacy position will help the

ICICI Bank

1,61,715

278

370

32.9

bank to outperform the industry average.

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

Infosys

2,60,118

1,132

1,306

15.3

be a US$20bn in FY2020.

Government thrust on Renewable sector and strong order book

Inox Wind

8,079

364

505

38.7

would drive future growth.

LICHF continues to grow its retail loan book at a healthy pace

LIC HFL

23,971

475

570

20.0

with improvement in asset quality.

Direct beneficiary of the huge investments lined up in the power

Power Grid

69,292

132

170

28.4

transmission sector.

Growth to pick up from 2HFY2017, attractive given the risk-

TCS

5,19,159

2,635

3,168

20.3

reward.

Tech Mahindra

54,013

561

646

15.1

Acquisitions, to drive growth, normalised valuations attractive.

An improving liability franchise, capital adequacy well above

Yes Bank

30,512

729

953

30.8

Basel III requirements and lowest NPA ratio in the industry.

Source: Company, Angel Research

Mid Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Bajaj Electricals

2,466

244

341

39.5

Visible turnaround in E&P business to drive the earnings.

Garware Wall Ropes

759

347

390

12.4

Higher exports & easing material prices to drive profitability.

Comfortable balance sheet to support strong growth; this

MBL Infrastructures

1,012

244

360

47.5

coupled with attractive valuation to lead to rerating.

New product introductions and increased sourcing by clients to

Minda Industries

799

504

652

29.4

enable outpace industry growth.

Strong brand & quality teaching with innovative technologies &

MT Educare

543

136

169

23.9

higher government educational spending to boost growth.

Earnings boost on back of stable material prices and favorable

Radico Khaitan

1,141

112

30.5

pricing environment. Valuation discount to peers provides

additional comfort.

Structural shift in the Lighting industry towards LED lighting will

Surya Roshni

572

131

183

40.2

drive growth.

Tree House

1,250

295

449

52.0

Robust expansion plan for pre-schools to drive growth.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

October 09, 2015

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

9.0

8.4

6.0

5.2

4.8

5.0

4.4

4.2

8.0

7.5

3.6

4.0

3.0

7.0

2.6

2.8

6.7

2.5

7.0

6.4

6.6

3.0

6.3

2.0

6.0

1.0

5.0

4.7

5.0

(1.0)

4.0

(2.0)

(3.0)

3.0

(2.7)

(4.0)

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

5.6

5.4

5.2

5.4

5.3

4.9

5.0

54.0

5.0

4.6

4.3

52.0

3.7

4.0

3.3

50.0

3.0

48.0

2.0

46.0

1.0

44.0

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

30.0

9.00

20.0

8.00

10.0

7.00

0.0

6.00

5.00

(10.0)

4.00

(20.0)

3.00

(30.0)

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Market Outlook

October 09, 2015

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

47,033

(4.4)

(15.1)

(19.5)

Russia

Micex

1,613

(5.2)

0.1

16.7

India

Nifty

7,951

(0.0)

(5.0)

(2.4)

China

Shanghai Composite

3,053

(1.0)

(28.6)

31.1

South Africa

Top 40

45,668

1.1

(2.7)

1.5

Mexico

Mexbol

42,735

(1.5)

(5.1)

(5.2)

Indonesia

LQ45

701

(8.3)

(15.9)

(19.6)

Malaysia

KLCI

1,629

1.0

(4.6)

(11.5)

Thailand

SET 50

868

(4.1)

(12.8)

(17.8)

USA

Dow Jones

16,472

(2.2)

(7.6)

(3.1)

FTSE

6,130

0.8

(6.9)

(6.6)

Japan

Nikkei

17,725

(7.4)

(12.4)

9.4

Germany

DAX

9,553

(5.8)

(13.0)

2.0

France

CAC

4,459

(4.2)

(7.9)

3.9

Source: Bloomberg, Angel Research

www.angelbroking.com

Stock Watch

October 09, 2015

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 )

FY16E FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

Agri / Agri Chemical

Rallis

Neutral

215

4,183

2,075

2,394

14.4

9.5

11.0

22.6

19.6

4.5

3.9

21.1

21.3

2.1

1.8

United Phosphorus

Accumulate

445

510

19,066

13,698

15,752

17.6

32.1

38.5

13.9

11.6

2.7

2.3

21.4

21.3

1.5

1.2

Auto & Auto Ancillary

Ashok Leyland

Accumulate

102

26,125

18,763

22,357

11.1

11.2

3.6

4.8

25.5

19.1

4.7

4.3

18.7

22.6

1.3

1.1

Bajaj Auto

Neutral

2,435

70,467

23,544

27,245

19.8

127.0

143.4

19.2

17.0

5.8

5.0

30.3

29.4

2.6

2.2

Eicher Motors

Buy

18,666

22,859

50,665

11,681

15,550

15.3

16.9

358.5

564.3

52.1

33.1

15.7

11.6

29.8

34.9

4.2

3.1

Hero Motocorp

Accumulate

2,540

2,672

50,713

28,500

32,764

14.1

14.3

146.9

167.0

17.3

15.2

6.5

5.6

37.8

36.5

1.6

1.4

L G Balakrishnan & Bros Neutral

438

687

1,254

1,394

11.6

11.8

35.9

41.7

12.2

10.5

1.7

1.5

13.5

13.8

0.7

0.6

Mahindra and Mahindra Accumulate

1,271

1,357

78,932

37,986

42,660

12.8

13.2

51.6

61.9

24.6

20.5

3.6

3.2

14.6

15.6

1.7

1.5

Maruti

Accumulate

4,354

4,960

131,530

58,102

68,587

16.7

16.9

182.0

225.5

23.9

19.3

4.8

4.1

19.9

21.0

2.0

1.7

Minda Industries

Buy

504

652

799

2,567

2,965

7.3

8.0

38.8

54.3

13.0

9.3

1.9

1.6

14.4

16.8

0.4

0.3

Rane Brake Lining

Buy

290

366

230

454

511

11.1

11.4

23.8

28.1

12.2

10.3

1.7

1.6

14.2

15.3

0.6

Setco Automotive

Neutral

230

615

594

741

12.7

13.7

8.4

15.8

27.4

14.6

2.8

2.5

10.4

16.9

1.5

1.2

Tata Motors

Accumulate

343

367

98,988

264,038

297,882

13.8

13.9

34.5

38.9

9.9

8.8

1.7

1.4

17.6

16.8

0.5

TVS Motor

Neutral

241

11,431

11,702

13,713

6.8

7.7

10.1

14.5

23.8

16.6

5.8

4.7

24.5

28.3

1.0

0.8

Amara Raja Batteries

Neutral

1,012

17,286

5,101

6,224

17.8

17.6

31.1

39.2

32.5

25.8

8.1

6.4

24.8

3.3

2.7

Exide Industries

Neutral

156

13,230

7,363

8,247

13.7

14.5

6.6

7.7

23.6

20.2

3.0

2.7

12.6

13.3

1.5

1.4

Apollo Tyres

Neutral

193

9,839

12,576

12,978

16.8

16.1

22.3

19.9

8.7

9.7

1.5

1.3

17.2

13.4

0.9

Ceat

Neutral

1,265

5,118

6,041

6,597

14.3

14.2

101.5

116.6

12.5

10.9

2.5

2.1

20.0

19.1

1.0

0.9

JK Tyres

Neutral

103

2,345

7,446

7,669

15.2

14.0

19.6

18.4

5.3

5.6

1.3

1.1

25.2

19.5

0.7

0.6

Swaraj Engines

Neutral

874

1,085

593

677

14.5

14.8

51.2

60.8

17.1

14.4

4.0

3.6

23.3

24.8

1.7

1.4

Subros

Neutral

459

1,268

1,488

11.6

11.9

3.7

6.6

20.7

11.6

1.4

1.3

6.8

11.4

0.7

0.5

Indag Rubber

Neutral

180

473

283

329

17.0

17.2

13.0

15.4

13.9

11.7

3.0

2.5

21.8

21.6

1.4

1.1

Capital Goods

ACE

Neutral

404

660

839

4.7

8.2

1.0

3.9

40.8

10.5

1.3

1.1

3.2

11.3

0.8

0.6

BEML

Neutral

1,257

5,236

3,277

4,006

6.0

8.9

29.2

64.3

43.1

19.6

2.4

2.2

5.7

11.7

1.7

1.3

BGR Energy

Neutral

117

847

3,615

3,181

9.5

9.4

16.7

12.4

7.0

9.5

0.7

10.0

7.0

0.6

0.8

BHEL

Neutral

204

49,894

33,722

35,272

10.8

11.7

10.5

14.2

19.4

14.4

1.4

7.0

9.0

1.6

1.5

Blue Star

Accumulate

343

387

3,085

3,649

4,209

5.0

5.9

9.2

14.7

37.5

23.3

6.8

6.4

9.1

17.5

0.9

0.8

Crompton Greaves

Accumulate

179

204

11,234

13,484

14,687

4.9

6.2

4.5

7.1

39.8

25.3

2.8

2.6

7.2

10.8

1.0

0.9

Inox Wind

Buy

364

505

8,079

4,980

5,943

17.0

17.5

26.6

31.6

13.7

11.5

4.1

3.0

35.0

30.0

1.8

1.4

www.angelbroking.com

Stock Watch

October 09, 2015

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 )

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

Capital Goods

KEC International

Neutral

144

3,694

8,791

9,716

6.1

6.8

5.4

8.2

26.6

17.5

2.7

2.4

10.0

14.0

0.6

Thermax

Neutral

859

10,237

6,413

7,525

7.4

8.5

30.5

39.3

28.2

21.9

4.3

3.8

15.0

17.0

1.6

1.3

Cement

ACC

Accumulate

1,357

1,548

25,471

11,856

14,092

14.5

17.8

47.6

76.1

28.5

17.8

2.9

2.7

10.6

15.7

2.0

1.6

Ambuja Cements

Accumulate

210

233

32,644

10,569

12,022

20.7

22.2

8.7

10.7

24.2

19.7

3.1

2.9

13.0

15.2

2.7

2.4

India Cements

Buy

112

2,413

4,716

5,133

15.9

16.9

3.7

7.5

21.2

10.5

0.8

0.7

3.8

7.3

0.8

0.7

JK Cement

Buy

656

767

4,587

4,056

4,748

14.5

17.0

22.6

41.1

29.0

16.0

2.6

2.3

9.3

15.3

1.6

1.3

J K Lakshmi Cement

Accumulate

384

430

4,523

2,947

3,616

16.7

19.9

11.5

27.2

33.4

14.1

3.2

2.7

9.8

20.8

1.9

1.6

Mangalam Cements

Neutral

225

600

1,053

1,347

10.5

13.3

8.4

26.0

26.7

8.6

1.1

1.0

4.3

12.5

0.9

0.7

Orient Cement

Accumulate

170

183

3,475

1,854

2,524

21.2

22.2

7.7

11.1

22.0

15.3

3.2

2.7

13.3

15.7

2.6

1.8

Ramco Cements

Neutral

341

8,118

4,036

4,545

20.8

21.3

15.1

18.8

22.6

18.1

2.8

2.5

12.9

14.3

2.5

2.2

Shree Cement^

Neutral

12,407

43,223

7,150

8,742

26.7

28.6

228.0

345.5

54.4

35.9

8.0

6.7

15.7

20.3

5.8

4.7

UltraTech Cement

Buy

2,818

3,282

77,330

27,562

31,548

20.4

22.3

111.9

143.3

25.2

19.7

3.6

3.1

15.2

16.8

2.9

2.5

Construction

ITNL

Neutral

3,114

7,360

8,825

34.0

35.9

1.0

5.0

94.7

18.9

0.4

0.3

1.4

3.9

3.7

KNR Constructions

Neutral

590

1,658

915

1,479

14.3

13.9

20.3

37.2

29.0

15.9

2.7

2.3

9.6

15.6

1.9

1.2

Larsen & Toubro

Buy

1,534

2,013

142,726

68,920

82,446

10.9

11.5

57.0

73.0

26.9

21.0

2.5

2.3

13.6

15.5

2.3

1.9

Gujarat Pipavav Port

Neutral

208

10,072

721

784

53.1

53.6

8.2

9.1

25.4

22.9

4.1

3.3

20.0

18.3

13.5

12.1

MBL Infrastructures

Buy

244

360

1,012

2,313

2,797

12.2

14.6

19.0

20.0

12.9

12.2

1.3

1.2

11.3

10.6

1.1

1.0

Nagarjuna Const.

Neutral

4,186

7,892

8,842

8.3

9.1

2.4

5.3

31.4

14.2

1.3

1.2

4.2

8.6

0.8

0.7

PNC Infratech

Neutral

523

2,682

1,798

2,132

13.2

13.5

22.0

30.0

23.8

17.4

2.1

1.9

11.5

11.4

1.6

1.3

Simplex Infra

Neutral

327

1,618

6,241

7,008

10.4

10.7

20.0

36.0

16.4

9.1

1.3

1.2

6.8

11.1

0.8

0.7

Financials

Allahabad Bank

Neutral

4,451

8,438

9,521

2.8

21.9

27.0

3.6

2.9

0.4

0.3

10.2

11.5

Axis Bank

Buy

491

701

116,836

26,941

32,298

3.5

3.6

37.4

46.4

13.1

10.6

2.7

2.3

18.7

20.0

Bank of Baroda

Neutral

186

42,823

19,027

21,737

1.9

2.0

16.9

24.5

11.0

7.6

1.0

0.9

9.1

12.1

Bank of India

Neutral

146

9,681

16,438

18,706

1.9

2.0

19.2

40.9

7.6

3.6

0.4

4.5

9.1

Canara Bank

Neutral

298

16,195

15,491

17,269

2.0

61.6

70.9

4.8

4.2

0.6

0.5

10.5

11.1

Dena Bank

Neutral

2,368

3,498

3,977

2.1

2.3

7.8

10.7

5.4

4.0

0.4

6.5

8.4

Federal Bank

Neutral

11,088

3,527

4,135

3.0

3.1

5.2

6.7

12.4

9.6

1.3

1.2

10.8

12.7

HDFC

Neutral

1,278

201,604

10,883

12,799

3.5

3.4

43.0

50.6

29.8

25.3

5.9

5.3

25.9

26.7

HDFC Bank

Buy

1,084

1,255

272,897

38,059

46,851

4.4

4.5

50.0

62.7

21.7

17.3

3.8

3.2

18.8

20.2

www.angelbroking.com

Stock Watch

October 09, 2015

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 )

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

Financials

ICICI Bank

Buy

278

370

161,715

35,810

41,871

3.4

3.5

22.0

26.2

12.7

10.6

2.2

1.8

15.0

15.6

IDBI Bank

Neutral

12,735

9,860

10,978

1.8

1.9

9.3

15.6

8.6

5.1

0.6

0.5

6.4

10.1

Indian Bank

Neutral

141

6,787

6,267

7,171

2.4

2.5

25.4

32.1

5.6

4.4

0.5

0.4

8.0

9.3

LIC Housing Finance

Buy

475

570

23,971

2,934

3,511

2.3

30.9

36.8

15.4

12.9

2.5

2.2

16.8

17.5

Oriental Bank

Neutral

145

4,342

7,730

8,595

2.4

2.5

38.8

47.4

3.7

3.1

0.3

8.6

9.8

Punjab Natl.Bank

Neutral

139

25,797

23,446

26,624

2.8

2.9

17.8

27.5

7.8

5.1

0.8

0.6

8.5

12.1

South Ind.Bank

Neutral

3,038

1,930

2,215

2.4

2.6

3.6

8.7

6.3

0.9

0.8

9.9

12.5

St Bk of India

Buy

243

307

184,124

83,847

96,307

2.8

20.1

25.1

12.1

9.7

1.3

1.2

11.5

13.1

Union Bank

Neutral

185

11,778

12,755

14,439

2.3

2.4

31.5

39.9

5.9

4.6

0.6

0.5

9.9

11.6

Vijaya Bank

Neutral

3,101

3,594

3,969

1.8

1.9

5.8

7.1

6.2

5.1

0.5

8.2

9.3

Yes Bank

Buy

729

953

30,512

7,204

9,078

3.2

57.8

69.5

12.6

10.5

2.2

1.9

19.6

22.6

FMCG

Asian Paints

Neutral

875

83,935

16,553

19,160

16.0

16.2

17.7

21.5

49.5

40.7

13.1

11.8

29.4

31.2

4.9

4.2

Britannia

Neutral

3,267

39,200

8,065

9,395

9.6

10.2

47.2

65.5

69.2

49.9

23.0

21.7

38.3

41.2

4.7

4.0

Colgate

Neutral

929

25,262

4,836

5,490

19.5

19.7

48.5

53.2

19.2

17.5

14.0

12.2

99.8

97.5

5.1

4.5

Dabur India

Neutral

278

48,813

9,370

10,265

17.1

17.2

7.3

8.1

37.9

34.3

11.4

9.3

33.7

30.6

5.1

4.7

GlaxoSmith Con*

Neutral

6,022

25,326

4,919

5,742

17.2

17.4

168.3

191.2

35.8

31.5

10.2

8.6

28.8

28.9

4.7

4.0

Godrej Consumer

Neutral

1,267

43,144

10,168

12,886

16.1

32.1

38.4

39.5

33.0

8.0

7.4

19.7

21.0

4.3

3.4

HUL

Neutral

821

177,729

34,940

38,957

17.5

17.7

20.8

24.7

39.5

33.3

43.9

35.1

110.5

114.2

4.9

4.4

ITC

Buy

339

409

272,219

41,068

45,068

37.8

37.4

13.9

15.9

24.4

21.3

8.2

7.2

34.1

33.8

6.3

5.7

Marico

Neutral

402

25,942

6,551

7,766

15.7

16.0

10.4

12.5

38.7

32.2

11.3

9.4

33.2

32.4

3.9

3.3

Nestle*

Neutral

6,373

61,448

11,291

12,847

22.2

22.3

158.9

184.6

40.1

34.5

21.0

18.9

55.0

57.3

5.3

4.6

Tata Global

Accumulate

133

144

8,409

8,635

9,072

9.8

9.9

6.5

7.6

20.5

17.6

2.0

6.8

7.4

0.9

HCL Tech^

Buy

828

1,132

116,448

42,038

47,503

23.5

56.4

62.9

14.7

13.2

3.4

2.6

23.2

19.8

2.4

1.9

Infosys

Buy

1,132

1,306

260,118

60,250

66,999

28.0

58.3

63.7

19.4

17.8

4.1

3.5

20.9

19.7

3.6

3.1

TCS

Buy

2,635

3,168

519,159

108,420

123,559

28.8

28.7

127.2

143.9

20.7

18.3

8.3

7.7

39.9

41.8

4.4

3.8

Tech Mahindra

Buy

561

646

54,013

25,566

28,890

16.0

17.0

26.3

31.9

21.4

17.6

3.8

3.3

17.9

18.6

1.9

1.6

Wipro

Buy

590

719

145,687

52,414

58,704

23.7

23.8

38.4

42.3

15.4

13.9

3.0

2.7

19.5

18.0

2.4

1.9

Media

D B Corp

Accumulate

314

356

5,763

2,241

2,495

27.8

27.9

21.8

25.6

14.4

12.3

3.8

3.3

26.7

28.5

2.5

2.2

HT Media

Neutral

1,867

2,495

2,603

11.2

7.3

8.6

11.0

9.3

0.9

0.8

7.4

8.1

0.3

0.2

www.angelbroking.com

Stock Watch

October 09, 2015

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 )

FY16E FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

Media

Jagran Prakashan

Accumulate

144

156

4,693

1,939

2,122

26.0

8.3

9.2

17.3

15.6

3.0

2.7

17.5

17.1

2.4

2.2

Sun TV Network

Neutral

357

14,059

2,779

3,196

70.2

70.5

22.8

27.3

15.7

13.1

3.9

3.5

26.7

28.3

4.8

4.2

Hindustan Media

Buy

250

292

1,836

920

1,031

20.0

19.2

20.9

13.0

12.0

2.1

1.8

16.4

15.3

1.5

1.3

Ventures

Metals & Mining

Coal India

Buy

346

400

218,673

72,015

78,415

21.2

21.5

21.7

25.3

15.9

13.7

5.4

5.3

33.1

39.1

2.3

2.1

Hind. Zinc

Neutral

145

61,352

15,258

16,495

44.2

45.6

17.6

19.2

8.2

7.6

1.3

1.1

15.9

15.3

1.7

1.2

Hindalco

Neutral

16,954

104,356

111,186

8.7

9.5

6.7

11.1

12.2

7.4

0.4

3.5

5.9

0.7

0.6

JSW Steel

Neutral

914

22,095

48,125

53,595

18.8

21.0

46.9

97.5

19.5

9.4

0.9

4.4

9.5

1.3

1.1

NMDC

Neutral

37,883

8,237

10,893

46.6

44.5

10.0

11.7

9.6

8.2

1.1

0.9

12.5

13.0

4.4

3.3

SAIL

Neutral

22,612

45,915

53,954

7.2

10.5

1.5

4.4

36.4

12.5

0.5

2.3

4.1

1.1

1.0

Vedanta

Neutral

27,542

71,445

81,910

26.2

26.3

12.9

19.2

7.2

4.8

0.5

7.2

8.9

0.8

0.6

Tata Steel

Neutral

241

23,358

136,805

149,228

11.3

11.9

26.4

36.8

9.1

6.5

0.7

6.0

8.0

0.7

0.6

Oil & Gas

Cairn India

Neutral

169

31,666

11,323

12,490

49.4

51.0

20.7

8.2

0.5

6.4

6.1

1.9

1.2

GAIL

Neutral

305

38,720

64,856

70,933

9.1

9.6

24.0

28.9

12.7

10.6

1.1

1.0

8.8

9.6

0.8

0.7

ONGC

Neutral

258

220,432

154,564

167,321

36.8

37.4

28.6

32.5

9.0

7.9

1.1

12.7

13.5

1.6

1.5

Petronet LNG

Buy

182

210

13,643

39,007

40,785

3.8

4.2

9.2

11.0

19.9

16.6

2.2

2.0

11.6

12.7

0.4

Indian Oil Corp

Accumulate

400

455

97,094

359,607

402,760

5.9

6.1

42.5

48.7

9.4

8.2

1.3

1.1

14.1

14.4

0.4

0.3

Reliance Industries

Neutral

889

287,945

313,085

362,904

13.1

13.8

78.4

92.9

11.4

9.6

1.2

1.1

10.8

11.6

1.4

1.2

Pharmaceuticals

Alembic Pharma

Neutral

719

13,560

2,601

3,115

21.2

20.2

20.8

23.9

34.6

30.1

11.1

8.4

37.2

31.8

5.2

4.3

Aurobindo Pharma

Buy

751

872

43,829

14,923

17,162

23.0

38.2

43.6

19.7

17.2

6.1

4.6

36.0

30.2

3.3

2.8

Aventis*

Neutral

4,002

9,216

2,156

2,455

15.1

16.8

109.7

133.9

36.5

29.9

5.0

4.1

18.4

22.5

4.0

3.3

Cadila Healthcare

Neutral

410

41,922

10,224

11,840

20.0

21.0

71.0

85.6

5.8

4.8

1.6

1.2

30.1

28.5

4.2

3.5

Cipla

Neutral

678

54,451

14,359

16,884

21.3

19.7

28.4

30.5

23.9

22.2

4.2

3.6

19.3

17.5

3.8

3.1

Dr Reddy's

Neutral

4,216

71,897

18,213

21,214

22.6

22.7

163.0

192.5

25.9

21.9

5.3

4.4

22.5

20.0

3.9

3.3

Dishman Pharma

Neutral

354

2,853

1,716

1,888

20.2

16.3

21.6

21.7

16.4

2.0

1.8

9.7

11.7

1.8

1.5

GSK Pharma*

Neutral

3,356

28,426

2,870

3,158

20.0

22.1

59.5

68.3

56.4

49.1

16.6

17.1

28.5

34.3

9.4

8.6

Indoco Remedies

Neutral

319

2,938

1,088

1,262

18.2

13.1

15.5

24.3

20.6

4.8

4.0

21.2

21.1

2.8

2.4

Ipca labs

Accumulate

720

800

9,078

3,507

4,078

17.6

18.6

25.8

32.0

27.9

22.5

3.6

3.1

13.8

14.9

2.9

2.4

Lupin

Neutral

2,044

92,015

14,864

17,244

26.9

62.1

71.1

32.9

28.8

8.0

6.3

27.4

24.6

5.9

5.0

Sun Pharma

Neutral

916

220,321

28,163

32,610

25.8

30.7

17.4

26.9

52.6

34.0

5.0

4.3

13.0

16.6

7.3

6.1

www.angelbroking.com

Stock Watch

October 09, 2015

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 )

FY16E FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

Power

Tata Power

Neutral

19,000

35,923

37,402

22.6

22.8

4.1

5.2

17.3

13.6

1.3

1.2

7.5

9.3

1.5

1.4

NTPC

Buy

126

157

103,852

87,064

98,846

23.5

11.7

13.2

10.8

9.5

1.2

1.1

11.4

12.1

2.2

2.0

Power Grid

Buy

132

170

69,292

20,702

23,361

86.7

86.4

12.1

13.2

11.0

10.0

1.6

1.4

15.6

15.1

8.3

7.7

Telecom

Bharti Airtel

Neutral

343

137,231

101,748

109,191

32.1

31.7

12.0

12.5

28.6

27.5

2.0

1.8

6.9

6.7

2.0

1.8

Idea Cellular

Neutral

157

56,424

34,282

36,941

32.0

31.5

5.9

6.2

26.6

25.3

2.4

2.2

9.9

9.3

2.2

2.1

zOthers

Abbott India

Neutral

5,789

12,302

2,715

3,153

14.5

14.1

134.3

152.2

43.1

38.0

10.8

8.9

27.4

25.6

4.2

3.6

Bajaj Electricals

Buy

244

341

2,466

4,719

5,287

5.2

5.8

8.6

12.7

28.6

19.3

3.3

2.9

11.4

14.8

0.5

Finolex Cables

Neutral

234

3,573

2,728

3,036

10.8

11.0

14.4

16.8

16.2

14.0

2.5

2.1

15.2

15.3

1.1

0.9

Goodyear India*

Buy

558

655

1,286

1,953

1,766

12.4

12.0

67.4

59.6

8.3

9.4

2.1

1.8

27.7

20.2

0.4

Hitachi

Neutral

1,433

3,897

1,806

2,112

9.0

9.2

28.6

29.1

50.1

49.3

12.5

10.1

28.1

22.6

2.2

1.9

Jyothy Laboratories

Neutral

315

5,696

1,620

1,847

11.5

7.3

8.5

43.1

37.1

5.6

5.2

13.3

14.4

3.4

2.9

MRF

Neutral

41,872

17,758

20,727

14,841

19.3

18.6

4,905.8

3,351.9

8.5

12.5

2.7

2.2

37.6

19.6

0.8

1.1

Page Industries

Neutral

14,232

15,874

1,929

2,450

19.8

20.1

229.9

299.0

61.9

47.6

27.3

19.0

52.1

47.1

8.3

6.5

Relaxo Footwears

Neutral

551

6,609

1,767

2,152

12.3

12.5

19.3

25.1

28.6

22.0

7.0

5.4

27.7

27.8

3.8

3.1

Siyaram Silk Mills

Buy

1,001

1,221

938

1,653

1,873

11.7

12.2

99.3

122.1

10.1

8.2

1.8

1.5

19.5

20.2

0.7

0.6

Styrolution ABS India*

Neutral

757

1,331

1,271

1,440

8.6

9.2

32.0

41.1

23.6

18.4

2.4

2.2

10.7

12.4

1.0

0.9

Tree House

Buy

295

449

1,250

259

324

56.8

17.0

21.7

17.4

13.6

1.7

1.6

10.1

11.5

4.7

3.9

TVS Srichakra

Buy

2,601

3,210

1,992

2,127

2,388

15.2

14.9

237.7

267.5

10.9

9.7

4.7

3.3

51.7

39.8

1.0

0.8

HSIL

Accumulate

275

302

1,987

2,182

2,404

16.3

16.5

15.8

18.9

17.4

14.6

1.4

1.3

8.4

9.4

1.2

1.1

Kirloskar Engines India

Neutral

290

4,190

2,634

3,252

10.1

12.0

10.9

17.4

26.6

16.6

3.0

2.7

11.4

16.8

1.2

0.9

Ltd

M M Forgings

Buy

543

797

655

563

671

22.1

22.9

51.0

66.5

10.6

8.2

2.2

1.8

23.1

24.1

1.3

1.1

Banco Products (India)

Neutral

132

940

1,208

1,353

11.0

12.3

10.8

14.5

12.2

9.1

1.4

1.3

11.9

14.5

0.7

0.6

Competent Automobiles Neutral

143

1,007

1,114

3.1

23.7

28.2

6.1

5.1

0.8

0.7

13.9

14.6

0.1

Nilkamal

Neutral

985

1,470

1,948

2,147

10.6

10.3

60.0

67.0

16.4

14.7

2.6

2.2

16.8

16.1

0.8

0.7

Visaka Industries

Buy

142

166

225

1,158

1,272

8.6

9.5

23.7

32.7

6.0

4.3

0.6

0.5

10.1

12.5

0.4

0.3

Transport Corporation of

Buy

248

293

1,883

2,830

3,350

8.8

9.0

14.4

18.3

17.2

13.5

2.7

2.3

15.4

17.1

0.8

0.7

India

Elecon Engineering

Accumulate

830

1,452

1,596

14.0

14.7

4.4

6.2

17.3

12.2

1.4

1.3

8.6

11.2

0.9

0.7

Surya Roshni

Buy

131

183

572

2,992

3,223

8.3

8.5

14.7

18.3

8.9

7.2

0.8

9.8

11.0

0.5

0.4

MT Educare

Buy

136

169

543

286

366

18.3

17.7

7.7

9.4

17.7

14.6

3.7

3.3

20.2

21.1

1.8

1.4

www.angelbroking.com

Stock Watch

October 09, 2015

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 )

FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E

zOthers

Radico Khaitan

Buy

112

1,141

1,565

1,687

11.9

12.4

5.4

6.6

15.9

13.0

1.3

1.2

8.0

9.0

1.2

Garware Wall Ropes

Accumulate

347

390

759

875

983

10.4

10.6

23.1

27.8

15.0

12.5

2.1

1.8

14.1

14.8

0.9

0.7

Wonderla Holidays

Accumulate

300

322

1,696

206

308

44.0

43.6

9.0

12.9

33.4

23.3

4.6

4.1

13.7

17.8

8.1

5.4

Linc Pen & Plastics

Buy

157

185

232

340

371

8.3

8.9

10.8

13.2

14.5

11.9

2.3

2.0

16.0

17.1

0.7

The Byke Hospitality

Accumulate

162

181

649

222

287

20.5

5.6

7.6

28.7

21.4

5.4

4.5

18.9

20.8

3.0

2.3

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 08, 2015

www.angelbroking.com

Market Outlook

October 09, 2015

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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