Market Outlook

September 20, 2017

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

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

BSE Sensex

(0.1)

(21)

32,402

US markets moved modestly higher over the course of the trading session on

Nifty

(0.1)

(6)

10,148

Tuesday. With the upward move on the day, all three of the major averages ended

Mid Cap

0.1

16,111

the session at record closing highs. The Dow Jones index rose 0.2 percent to

22,371, while Nasdaq edged up 0.1% to 6,461 and the S&P 500 inched up 0.1

Small Cap

0.4

16,894

percent to 2,507. The buying interest was somewhat subdued as traders seemed

Bankex

0.1

28,213

reluctant to make significant moves ahead of the Federal Reserve's monetary policy

announcement on Wednesday.

Global Indices

Chg (%)

(Pts)

(Close)

The UK markets edged higher on Tuesday as the pound pulled back from a 15-

Dow Jones

0.2

22,371

month high against the dollar, helping spur bargain hunting in shares of

Nasdaq

0.1

6,461

multinational companies on the benchmark index. The FTSE 100 rose 0.3% to 7,275

FTSE

0.3

7,275

on Tuesday, thanks to a relatively quiet day across European markets.

Nikkei

2.0

390

20,299

The NSE benchmark Nifty ended flat in a volatile session with negative bias, down

Hang Seng

(0.4)

(108)

28,051

5.55 points on selling mainly in PSU bank, metal, pharma and financial service.

Shanghai Com

(0.2)

(6)

3,357

Investors turned cautious ahead of the two-day US Federal Reserve monetary policy.

BSE Sensex closed lower by 21 points, to 32,402, while the Nifty 50 edged down 6

points, to close at 10,148.

Advances / Declines

BSE

NSE

Advances

1,293

839

News Analysis

Declines

1,336

846

 India Inc charges up on battery manufacturing

Unchanged

157

Detailed analysis is on Pg2

#Volumes (` Cr)

Investor’s Ready Reckoner

BSE

4,285

Key Domestic & Global Indicators

NSE

28,632

Stock Watch: Latest investment recommendations on 150+ stocks

Refer Pg7 onwards

#Net Inflows (` Cr)

Net

Mtd

Ytd

Top Picks

FII

(79)

(2,423)

44,86

CMP

Target

Upside

Company

Sector

Rating

MFs

117

5,866

74,75

(`)

(%)

Blue Star

Capital Goods

Accumulate

783

807

3.1

Dewan Housing FinanceFinancials

Accumulate

609

610

0.1

Top Gainers

Price (`)

Chg (%)

Asian Granito

Others

Accumulate

492

495

0.6

Trent

312

7.4

Navkar Corporation

Others

Buy

193

265

37.1

Strtech

235

5.9

KEI Industries

Capital Goods

Accumulate

349

371

6.2

More Top Picks on Pg5

Fsl

5.4

Prestige

281

5.4

Key Upcoming Events

Consensus

Bomdyeing

193

5.0

Date

Region

Event Description

Reading

Expectations

Sep 20, 2017 US

FOMC rate decision

1.25

Top Losers

Price (`)

Chg (%)

Sep 20, 2017 US

Existing home sales

5.44

5.46

Sep 21, 2017 US

Initial Jobless claims

284.00

300.00

Rtnpower

(5.5)

Sep 21, 2017 Germany PMI Manufacturing

59.30

59.00

Religare

(5.0)

Sep 22, 2017 Euro Zone Euro-Zone Consumer Confidence

(1.50)

Jpassociat

(4.8)

More Events on Pg7

Sreinfra

108

(4.3)

Hathway

(3.3)

#as on 19^th Sep, 2017

www.angelbroking.com

Market Outlook

September 20, 2017

News Analysis

India Inc charges up on battery manufacturing

Indian companies like Reliance Industries, JSW, Hero Motocorp, and Adani are

likely to invest in battery manufacturing with billons of dollar in investments over

the next decade or so factordaily.com.

As per the report on factordaily.com, Reliance Industries has aggressive plans to

establish a factory that would produce Lithium-Ion (Li-Ion) batteries of 25 gigawatt-

hours (GWh) capacity. Reliance industries has been in the energy business for long

and now has a telecom business and also selling mobile phones powered by Li-

Ion battery. Others companies like JSW, Adani, and Mahindra are also looking at

the battery pack business.

India has ambitions of being an all electric car nation by 2030 and international

players such as Suzuki Motor Corp. and Toshiba Corp. have already unveiled their

Li-Ion battery plans for India. As per the website JSW Energy is planning to set up

a battery factory as it will be a forward integration of its existing business of power

generation to distribution.

Last week, Suzuki announced of its plan to invest `1,150cr together with Japanese

partners Toshiba and Denso Corp. to set up a Lithium-Ion battery facility in

Gujarat. Suzuki will own 50%, Toshiba 40%, and Denso 10% of the joint venture

that will make batteries and battery packs for Indian car maker Maruti Suzuki and

export to Suzuki.

Economic and Political News

 GST a tectonic shift, takes India closer to 8% plus growth: World Bank



`300,000cr road sector loans saved from turning NPAs: Nitin Gadkari

 Petrol, diesel prices set to fall? Rates may come down by Diwali, says

Dharmendra Pradhan

Corporate News

 Two Adani Power cos secure over 1/3rd of CIL coali

 Car sales rev up on festive spirit, despite cess bump

 NPA-laden state-run banks crimp advance tax mop-up at 10.6%

www.angelbroking.com

Market Outlook

September 20, 2017

Top Picks

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Strong growth in domestic business due to its leadership

in acute therapeutic segment. Alkem expects to launch

Alkem Laboratories

21,251

1,777

2,161

21.6

more products in USA, which bodes for its international

business.

We expect the company would report strong profitability

Asian Granito

1,480

492

495

0.6

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

7,495

783

807

3.1

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

19,108

609

610

0.1

presence in tier-II & III cities where the growth

opportunity is immense.

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

Karur Vysya Bank

9,569

158

180

13.7

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

Increasing share of CASA will help in NIM improvement.

High order book execution in EPC segment, rising B2C

KEI Industries

2,719

349

371

6.2

sales and higher exports to boost the revenues and

profitability

Expected to benefit from the lower capex requirement

Music Broadcast

2,249

394

434

10.1

and 15 year long radio broadcast licensing.

Massive capacity expansion along with rail advantage at

Navkar Corporation

2,757

193

265

37.1

ICD as well CFS augurs well for the company

Strong brands and distribution network would boost

Siyaram Silk Mills

2,166

2,311

2,500

8.2

growth going ahead. Stock currently trades at an

inexpensive valuation.

Market leadership in Hindi news genre and no.

viewership ranking in English news genre, exit from the

TV Today Network

1,962

329

345

4.9

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

2,46,144

8,148

8,658

6.3

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

2,917

542

655

20.9

year; change in borrowing mix will help in NIM

improvement..

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

September 20, 2017

Key Upcoming Events

Global economic events release calendar

Bloomberg Data

Date

Time

Country

Event Description

Unit

Period

Last Reported

Estimated

Sep 20, 2017

11:30 PMUS

FOMC rate decision

Sep 20

1.25

7:30 PMUS

Existing home sales

Million

Aug

5.44

5.46

Sep 21, 2017

6:00 PMUS

Initial Jobless claims

Thousands

Sep 16

284.00

300.00

1:00 PMGermany

PMI Manufacturing

Value

Sep P

59.30

59.00

Sep 22, 2017

7:30 PMEuro Zone

Euro-Zone Consumer Confidence

Value

Sep A

(1.50)

1:00 PMGermany

PMI Services

Value

Sep P

53.50

53.70

Sep 26, 2017

7:30 PMUS

Consumer Confidence

S.A./ 1985=100

Sep

122.90

119.25

7:30 PMUS

New home sales

Thousands

Aug

571.00

600.00

Sep 28, 2017

6:00 PMUS

GDP Qoq (Annualised)

% Change

2Q T

3.00

3.20

Sep 29, 2017

1:25 PMGermany

Unemployment change (000's)

Thousands

Sep

(5.00)

2:00 PMUK

GDP (YoY)

% Change

2Q F

1.70

Sep 30, 2017

6:30 AMChina

PMI Manufacturing

Value

Sep

51.70

Oct 02, 2017

2:00 PMUK

PMI Manufacturing

Value

Sep

56.90

Oct 04, 2017

2:30 PMIndia

RBI Reverse Repo rate

Oct 4

5.75

2:30 PMIndia

RBI Repo rate

Oct 4

6.00

6:00 PMUS

Change in Nonfarm payrolls

Thousands

Sep

156.00

Oct 06, 2017

2:30 PMIndia

RBI Cash Reserve ratio

Oct 4

4.00

6:00 PMUS

Unnemployment rate

Sep

4.40

Oct 10, 2017

India

Imports YoY%

% Change

Sep

21.00

India

Exports YoY%

% Change

Sep

10.30

2:00 PMUK

Industrial Production (YoY)

% Change

Aug

0.40

Oct 12, 2017

Producer Price Index (mom)

% Change

Sep

0.50

5:30 PMIndia

Industrial Production YoY

% Change

Aug

1.20

Oct 13, 2017

6:00 PMUS

Consumer price index (mom)

% Change

Sep

0.40

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

September 20, 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

3.5

7.2

7.0

4.0

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 20, 2017

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

75,990

10.8

22.5

33.2

Russia

Micex

2,059

6.3

10.9

2.7

India

Nifty

10,153

2.5

5.8

16.1

China

Shanghai Composite

3,363

2.7

6.4

8.6

South Africa

Top 40

49,737

1.5

10.4

9.3

Mexico

Mexbol

50,258

(1.4)

2.5

8.5

Indonesia

LQ45

980

0.0

3.4

6.9

Malaysia

KLCI

1,784

0.7

(0.0)

5.6

Thailand

SET 50

1,074

7.9

8.4

16.3

USA

Dow Jones

22,331

1.4

4.4

23.2

FTSE

7,253

(2.4)

(3.6)

6.2

Japan

Nikkei

19,910

0.9

0.4

17.4

Germany

DAX

12,559

3.1

(1.8)

18.1

France

CAC

5,229

2.3

(0.8)

19.0

Source: Bloomberg, Angel Research, Data as on19th September 2017

www.angelbroking.com

Stock Watch

September 20, 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

226

209

4,389

1,873

2,099

15.0

9.5

10.5

23.8

21.5

3.6

3.3

15.8

16.0

2.2

2.0

United Phosphorus

Neutral

835

42,436

18,922

21,949

18.0

18.5

36.2

45.6

23.1

18.3

4.8

4.0

22.7

23.8

2.4

2.0

Auto & Auto Ancillary

Ashok Leyland

Accumulate

118

127

34,577

23,339

27,240

10.1

10.8

4.7

6.2

25.4

19.0

5.1

4.5

20.0

23.6

1.4

1.2

Bajaj Auto

Neutral

3,116

90,155

23,936

27,955

19.5

20.1

142.7

167.3

21.8

18.6

4.8

4.3

21.8

22.8

3.4

2.8

Bharat Forge

Neutral

1,268

29,517

7,637

8,755

21.7

23.2

36.1

47.3

35.1

26.8

6.3

5.4

18.5

20.8

3.7

3.2

Eicher Motors

Neutral

32,404

88,212

19,043

22,837

19.5

19.9

835.4

1,019.0

38.8

31.8

14.5

11.2

40.9

37.8

4.5

3.7

Gabriel India

Neutral

212

3,047

1,782

2,033

9.7

10.2

7.1

8.9

29.9

24.0

6.0

5.1

21.0

22.2

1.7

1.4

Hero Motocorp

Neutral

3,949

78,852

32,239

36,878

16.0

15.6

184.4

206.5

21.4

19.1

6.7

5.9

31.3

30.7

2.2

1.9

Jamna Auto Industries Neutral

258

2,058

1,441

1,662

14.4

14.8

13.9

17.6

18.6

14.7

5.1

4.1

30.0

31.0

1.4

1.2

Mahindra and Mahindra Neutral

1,294

80,372

46,971

53,816

13.6

14.0

67.7

79.8

19.1

16.2

2.7

2.4

15.0

15.9

1.6

1.3

Maruti

Accumulate

8,148

8,658

246,144

81,825

101,245

15.0

283.5

356.0

28.7

22.9

6.3

5.1

21.9

22.4

2.7

2.1

Minda Industries

Neutral

863

7,458

4,328

5,084

11.0

11.9

27.3

36.4

31.7

23.7

6.7

5.3

23.1

25.6

1.8

1.5

Motherson Sumi

Neutral

342

71,891

55,937

64,445

10.8

11.4

16.9

21.1

20.2

16.2

4.5

4.6

25.2

25.4

1.3

1.1

Tata Motors

Neutral

424

122,395

303,167

343,649

11.8

13.8

33.1

54.7

12.8

7.8

2.1

1.7

16.9

23.0

0.5

0.4

TVS Motor

Neutral

659

31,325

13,992

16,216

9.0

9.4

17.1

20.3

38.7

32.5

10.3

7.9

29.7

27.7

2.2

1.8

Amara Raja Batteries

Accumulate

780

858

13,317

6,140

7,122

14.3

15.6

29.3

39.0

26.6

20.0

4.5

3.8

17.1

19.0

2.2

1.9

Exide Industries

Neutral

226

19,244

8,689

9,854

15.1

15.2

9.7

11.0

23.5

20.6

4.2

3.7

15.7

16.1

2.0

1.7

Apollo Tyres

Neutral

259

13,163

15,739

17,326

13.3

14.6

20.4

26.7

12.7

9.7

1.5

1.4

20.4

26.7

1.1

1.0

Ceat

Neutral

1,780

7,199

6,661

7,717

11.1

14.2

116.2

178.2

15.3

10.0

2.7

2.2

15.2

21.3

1.2

1.0

JK Tyres

Neutral

148

3,350

8,318

9,239

16.2

16.4

21.0

27.5

7.1

5.4

1.4

1.1

19.1

20.4

0.9

0.7

Swaraj Engines

Neutral

2,033

2,525

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

253

1,520

1,855

2,135

11.6

11.8

10.3

14.7

24.7

17.3

3.8

3.2

15.8

19.1

1.0

0.9

Capital Goods

BEML

Neutral

1,933

8,050

4,286

5,194

7.1

8.2

42.9

58.1

45.1

33.3

3.7

3.4

7.6

8.7

1.9

1.6

Bharat Electronics

Neutral

191

42,629

10,258

12,470

19.6

19.5

7.3

8.6

26.1

22.2

0.5

20.4

21.9

3.6

3.0

Voltas

Neutral

548

18,131

6,778

8,004

9.6

11.0

17.1

22.4

32.0

24.5

7.6

6.7

17.7

19.8

2.4

2.0

BHEL

Neutral

135

32,945

33,200

39,167

6.8

9.5

6.2

11.2

21.7

12.0

1.0

4.6

8.0

0.6

0.4

Blue Star

Accumulate

783

850

7,495

5,101

5,997

6.0

7.0

17.9

26.6

43.7

29.4

9.3

8.5

21.9

29.0

1.5

1.3

CG Power and Industrial

Neutral

5,133

6,555

7,292

7.5

0.8

8,190.0

102.4

1.3

0.1

1.2

0.9

0.8

Solutions

Greaves Cotton

Neutral

141

3,446

1,778

1,993

14.7

15.1

8.1

9.1

17.4

15.5

3.9

3.7

21.8

23.6

1.7

1.5

www.angelbroking.com

Stock Watch

September 20, 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

Accumulate

314

350

8,064

9,779

11,113

9.4

9.8

14.2

18.2

22.1

17.2

4.2

3.5

21.1

22.1

1.1

1.0

KEI Industries

Accumulate

349

371

2,719

3,001

3,391

10.0

13.0

16.1

26.9

21.7

4.9

4.1

18.2

18.7

1.1

1.0

Thermax

Neutral

935

11,142

4,125

4,747

10.3

10.8

26.7

31.5

35.0

29.7

3.9

3.6

11.2

12.0

2.4

2.1

VATech Wabag

Accumulate

641

681

3,502

3,867

4,126

9.6

10.0

34.9

39.8

18.4

16.1

3.0

2.6

17.7

17.5

0.9

0.8

Cement

ACC

Neutral

1,816

34,109

12,255

13,350

13.5

14.3

58.0

66.2

31.3

27.4

3.7

3.5

11.5

12.2

2.8

2.5

Ambuja Cements

Neutral

284

56,432

10,250

11,450

17.5

19.0

7.2

8.3

39.5

34.2

2.8

2.7

7.0

7.8

5.3

4.7

India Cements

Neutral

190

5,858

6,135

6,750

14.8

15.2

8.5

11.5

22.4

16.5

1.1

4.8

6.2

1.3

1.1

JK Cement

Neutral

1,022

7,147

4,150

4,775

19.2

20.0

49.0

63.5

20.9

16.1

3.3

2.8

17.0

18.5

2.2

1.8

J K Lakshmi Cement

Neutral

419

4,932

3,422

3,757

15.5

17.0

13.5

23.2

31.1

18.1

3.2

2.8

10.8

15.5

1.8

1.6

Orient Cement

Neutral

164

3,355

2,215

3,233

16.8

17.0

5.9

6.9

27.8

23.7

2.1

2.0

10.8

10.1

2.5

1.7

UltraTech Cement

Neutral

4,187

114,946

28,250

35,150

20.2

23.5

77.5

122.2

54.0

34.3

4.6

4.1

9.6

14.8

4.5

3.6

Construction

KNR Constructions

Neutral

207

2,905

1,846

2,203

14.5

12.1

13.7

17.1

15.1

0.9

0.8

17.5

16.7

1.6

1.3

Larsen & Toubro

Neutral

1,226

171,763

95,787

109,476

10.2

11.6

44.5

50.8

27.6

24.2

3.5

3.2

12.9

13.1

2.3

2.1

Gujarat Pipavav Port

Neutral

146

7,068

739

842

61.6

62.7

5.1

6.2

28.7

23.8

3.6

3.5

12.7

14.9

9.0

7.8

PNC Infratech

Accumulate

133

143

3,416

2,040

2,935

13.0

6.4

9.0

20.8

14.8

0.5

9.7

12.2

1.7

1.2

Simplex Infra

Neutral

485

2,402

6,012

6,619

11.6

11.7

21.1

31.0

23.1

15.7

1.6

1.5

6.5

8.6

0.9

0.8

Sadbhav Engineering

Neutral

290

4,971

3,823

4,426

10.7

10.8

10.3

11.8

28.1

24.6

3.4

3.0

10.1

10.5

1.6

1.4

NBCC

Neutral

215

19,350

9,099

12,706

6.4

7.3

9.6

29.5

22.5

1.3

1.0

27.5

30.5

2.0

1.4

MEP Infra

Neutral

117

1,901

2,403

2,910

18.3

16.8

2.4

6.1

49.7

19.3

18.9

12.7

35.2

55.8

1.9

1.6

SIPL

Neutral

3,445

2,060

2,390

46.8

47.7

(5.8)

(3.1)

3.7

4.2

(14.2)

(2.3)

6.4

6.0

Engineers India

Neutral

157

10,600

1,795

2,611

21.1

22.4

5.9

8.1

26.7

19.4

1.9

1.8

12.9

16.1

4.3

2.8

Financials

Axis Bank

Accumulate

521

580

124,879

32,558

35,843

3.5

3.2

27.8

41.0

18.7

12.7

2.0

1.8

11.4

14.9

Bank of Baroda

Neutral

144

33,249

22,533

26,079

2.4

12.0

20.9

12.0

6.9

0.8

0.7

6.6

11.0

Canara Bank

Neutral

343

20,469

17,925

20,235

2.0

2.1

18.5

36.5

18.5

9.4

0.7

3.4

6.2

Can Fin Homes

Neutral

2,879

7,665

586

741

3.5

107.8

141.0

26.7

20.4

5.9

4.7

24.1

25.6

Cholamandalam Inv. &

Accumulate

1,165

1,230

18,212

2,826

3,307

6.3

53.7

64.6

21.7

18.1

3.7

3.2

18.3

18.9

Fin. Co.

Dewan Housing Finance Neutral

609

19,108

2,676

3,383

2.4

2.7

37.4

49.7

16.3

12.3

2.1

1.9

13.8

16.2

Equitas Holdings

Buy

163

235

5,521

1,125

1,380

9.6

9.8

1.5

6.0

108.6

27.2

2.5

2.3

2.4

8.2

Federal Bank

Neutral

119

23,201

4,896

5,930

2.8

3.1

5.4

7.6

22.2

15.7

1.9

1.7

8.5

11.0

www.angelbroking.com

Stock Watch

September 20, 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

542

655

2,917

376

477

3.6

3.7

33.0

40.0

16.4

13.5

2.9

2.5

20.0

23.0

HDFC Bank

Neutral

1,852

477,958

55,236

63,253

4.5

4.4

68.9

82.4

26.9

22.5

4.7

3.9

18.7

18.5

ICICI Bank

Accumulate

294

315

188,859

42,361

51,378

3.6

3.9

18.4

25.7

16.0

11.4

1.7

11.3

15.0

Karur Vysya Bank

Accumulate

158

180

9,569

3,289

3,630

3.7

3.9

10.8

14.1

14.6

11.3

1.8

1.6

12.5

14.7

LIC Housing Finance

Neutral

650

32,803

4,895

6,332

3.4

3.7

50.7

66.8

12.8

9.7

2.6

2.1

21.7

23.8

Punjab Natl.Bank

Neutral

144

30,664

23,708

25,758

2.1

5.9

16.4

24.5

8.8

0.7

3.0

8.3

RBL Bank

Neutral

535

22,107

2,309

2,888

2.6

2.5

16.4

19.1

32.7

28.1

4.1

3.7

13.3

13.8

Repco Home Finance

Buy

648

825

4,052

496

597

4.4

4.2

38.5

48.7

16.8

13.3

3.0

2.5

19.6

20.6

South Ind.Bank

Neutral

5,251

3,195

3,567

3.0

3.1

3.0

3.8

9.6

7.6

1.0

0.9

10.5

11.9

St Bk of India

Neutral

268

231,166

105,827

121,056

2.4

2.5

16.1

25.6

16.6

10.5

1.3

1.2

6.6

9.9

Union Bank

Neutral

137

9,948

14,650

16,225

2.3

23.1

32.5

5.9

4.2

0.5

0.4

7.1

9.2

Yes Bank

Neutral

1,864

85,367

11,088

13,138

3.0

2.9

84.0

99.3

22.2

18.8

3.4

3.0

16.3

16.8

FMCG

Akzo Nobel India

Neutral

1,858

8,912

3,164

3,607

13.8

13.7

58.6

67.9

31.7

27.4

7.8

6.9

24.5

25.1

2.7

2.3

Asian Paints

Neutral

1,253

120,192

17,603

20,615

18.6

2,128.9

2,543.3

0.6

0.5

12.4

10.4

28.0

28.9

6.6

5.6

Britannia

Neutral

4,363

52,386

9,690

11,278

14.8

15.4

84.0

101.0

51.9

43.2

18.9

15.0

40.6

39.0

5.4

4.6

Colgate

Neutral

1,144

31,111

4,420

5,074

24.9

25.3

28.6

32.8

40.0

34.9

15.8

12.7

43.8

40.5

6.8

5.9

Dabur India

Neutral

315

55,417

8,346

9,344

19.6

19.9

7.8

9.0

40.3

35.0

8.1

7.4

25.2

24.8

6.2

5.5

GlaxoSmith Con*

Neutral

5,019

21,107

5,072

5,760

18.2

18.4

176.3

199.2

28.5

25.2

6.0

5.5

21.2

21.7

3.5

3.0

Godrej Consumer

Neutral

955

65,050

10,171

11,682

20.8

21.5

21.7

27.1

44.0

35.2

9.9

8.5

22.3

23.4

6.5

5.6

HUL

Neutral

1,280

277,032

37,077

41,508

20.3

21.8

5,189.9

6,318.5

0.3

0.2

39.0

33.3

74.8

82.0

7.3

6.5

ITC

Neutral

268

326,189

44,588

49,853

37.0

37.3

9.6

11.0

27.9

24.4

6.8

6.5

25.1

27.3

6.8

6.0

Marico

Neutral

332

42,792

6,788

7,766

18.5

19.2

7.1

8.5

46.7

39.0

16.3

14.0

36.9

38.0

6.1

5.4

Nestle*

Neutral

7,272

70,114

10,083

11,182

20.0

20.9

119.7

141.3

60.8

51.5

214.1

195.7

36.7

39.8

6.6

5.9

Tata Global

Neutral

216

13,645

7,121

7,641

11.9

12.3

6.9

8.0

31.3

27.0

2.1

2.0

6.8

7.2

1.7

1.6

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^

Accumulate

894

1,014

127,558

52,342

57,053

20.9

62.8

67.6

14.2

13.2

3.2

2.7

22.4

20.6

2.1

1.8

Infosys

Buy

911

1,179

209,323

73,963

80,619

26.0

64.4

69.3

14.2

13.2

2.8

2.6

19.7

19.6

2.3

2.0

TCS

Accumulate

2,498

2,651

492,272

127,403

138,870

27.6

144.5

156.0

17.3

16.0

5.1

4.8

29.7

29.8

3.5

3.2

Tech Mahindra

Buy

446

533

43,564

31,015

33,496

15.0

35.6

38.1

12.5

11.7

2.1

2.0

17.0

16.3

1.2

1.0

www.angelbroking.com

Stock Watch

September 20, 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

140,599

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

374

6,873

2,404

2,625

30.5

31.5

23.7

26.9

15.8

13.9

3.7

3.2

23.5

22.8

2.7

2.5

HT Media

Neutral

105

2,451

2,589

2,830

15.1

15.4

8.3

10.9

12.7

9.7

1.0

0.9

8.4

10.4

0.5

0.4

Jagran Prakashan

Buy

183

225

5,991

2,541

2,835

28.5

28.7

12.7

14.1

14.4

13.0

3.0

2.6

21.3

21.4

2.2

1.9

Sun TV Network

Neutral

851

33,539

3,238

3,789

51.9

55.1

30.9

38.0

27.5

22.4

7.9

6.9

30.0

31.0

9.9

8.3

Hindustan Media

Neutral

268

1,967

1,002

1,074

23.3

23.5

29.2

33.8

9.2

7.9

1.4

1.2

15.6

15.4

1.0

0.7

Ventures

TV Today Network

Neutral

329

1,962

667

727

27.7

18.6

20.1

17.7

16.4

2.8

15.6

17.3

2.5

2.3

Music Broadcast Limited Accumulate

394

434

2,249

271

317

91.0

109.0

6.0

10.0

65.7

39.4

4.1

3.7

6.5

9.3

7.9

6.5

Metals & Mining

Coal India

Neutral

258

160,275

82,301

91,235

17.0

18.0

17.1

20.5

15.1

12.6

2.8

2.7

45.0

55.0

1.6

1.4

Hind. Zinc

Neutral

308

130,182

22,108

24,555

57.0

58.0

22.1

26.3

13.9

11.7

4.5

3.7

32.0

35.0

4.9

4.1

Hindalco

Neutral

247

55,339

102,350

105,355

13.5

14.5

21.5

24.5

11.5

10.1

1.6

1.3

15.0

15.2

1.1

JSW Steel

Neutral

262

63,259

64,500

68,245

21.1

21.5

20.1

21.2

13.0

12.3

2.4

2.0

1.7

1.6

NMDC

Neutral

133

41,985

10,209

11,450

47.0

48.0

11.1

12.1

12.0

11.0

1.7

1.6

3.6

3.3

SAIL

Neutral

25,813

54,100

63,555

3.0

10.0

(10.0)

1.5

41.7

0.8

1.5

1.3

Vedanta

Neutral

323

120,158

81,206

87,345

28.0

29.0

26.5

33.5

12.2

9.7

2.8

2.4

2.2

1.9

Tata Steel

Neutral

677

65,708

121,445

126,500

16.2

17.2

65.4

81.3

10.3

8.3

1.6

1.4

1.1

0.9

Oil & Gas

GAIL

Neutral

420

71,060

53,115

52,344

14.2

15.3

30.0

31.1

14.0

13.5

1.8

1.6

1.1

1.0

ONGC

Neutral

166

212,968

83,111

84,934

44.2

44.9

16.4

16.9

10.1

9.8

1.2

1.1

2.4

Indian Oil Corp

Neutral

418

203,123

396,116

432,560

8.5

8.8

40.1

42.2

10.4

9.9

1.8

1.6

0.7

0.6

Reliance Industries

Neutral

840

546,319

257,711

267,438

17.0

18.2

89.1

89.5

9.4

0.9

0.8

1.8

1.7

Pharmaceuticals

Alembic Pharma

Buy

484

600

9,130

3,903

4,584

18.2

19.2

21.8

27.2

22.2

17.8

4.0

3.4

19.8

20.6

2.4

2.0

Alkem Laboratories Ltd

Buy

1,777

2,161

21,251

6,901

7,850

18.4

19.1

85.0

100.5

20.9

17.7

4.2

3.6

20.2

20.1

3.1

2.7

Aurobindo Pharma

Accumulate

748

823

43,847

17,086

19,478

22.1

22.0

44.7

51.4

16.7

14.6

3.7

3.0

24.7

22.7

2.7

2.3

Aventis*

Neutral

4,046

9,318

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

485

426

49,611

11,584

13,228

20.3

20.4

18.7

21.3

25.9

22.8

5.8

4.7

24.6

22.9

4.1

3.5

Cipla

Sell

574

458

46,149

16,619

19,437

15.4

16.2

19.7

24.3

29.1

23.6

3.3

2.9

12.0

13.2

2.9

2.5

Dr Reddy's

Neutral

2,239

37,122

15,844

17,973

17.6

18.2

91.7

111.0

24.4

20.2

2.8

2.5

11.9

13.0

2.6

2.3

GSK Pharma*

Neutral

2,402

20,348

3,260

3,651

15.0

18.0

46.1

58.6

52.1

41.0

10.7

11.0

20.0

26.5

6.1

5.6

Indoco Remedies

Sell

202

153

1,861

1,154

1,310

14.9

11.3

12.7

17.9

15.9

2.5

2.2

15.0

1.7

1.5

www.angelbroking.com

Stock Watch

September 20, 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

490

540

6,184

3,593

4,022

14.5

15.5

19.4

25.2

25.3

19.5

2.3

2.1

9.5

11.2

1.8

1.6

Lupin

Buy

1,006

1,467

45,442

18,657

21,289

21.3

23.3

52.8

66.7

19.1

15.1

2.9

2.4

16.3

17.5

2.4

2.0

Natco Pharma

Neutral

799

13,922

1,836

1,946

31.8

28.9

22.1

20.6

36.1

38.7

7.3

6.5

20.1

16.7

7.4

7.0

Sun Pharma

Accumulate

517

558

123,945

32,899

36,451

26.9

25.4

31.6

32.3

16.4

16.0

2.9

2.5

18.7

18.8

3.4

2.9

Syngene International

Buy

481

557

9,613

1,402

1,823

32.8

36.0

15.9

20.7

30.3

23.3

5.7

4.7

18.7

20.0

6.8

5.2

Power

Tata Power

Neutral

22,882

32,547

33,806

20.5

4.7

5.4

18.0

15.8

1.7

1.5

10.5

1.7

1.6

NTPC

Neutral

169

139,266

86,070

101,246

28.3

30.7

12.9

16.2

13.1

10.4

1.4

1.3

10.6

12.4

3.0

2.7

Power Grid

Neutral

215

112,688

29,183

32,946

89.7

90.0

18.0

20.8

12.0

10.4

2.0

1.8

17.7

18.2

7.8

7.2

Real Estate

Prestige Estate

Neutral

281

10,524

4,607

5,146

21.0

22.2

7.9

9.8

35.5

28.6

2.2

2.0

10.3

12.0

3.5

3.1

MLIFE

Neutral

525

2,694

487

590

12.3

17.8

21.0

31.2

25.0

16.8

1.3

1.2

5.2

7.4

4.2

3.5

Telecom

Bharti Airtel

Neutral

395

157,777

97,903

105,233

36.0

36.3

9.3

11.1

42.4

35.7

2.1

1.9

5.0

5.6

2.6

2.3

Idea Cellular

Neutral

29,937

35,012

37,689

27.1

27.7

(4.4)

(2.7)

1.3

1.4

(6.8)

(4.6)

2.2

1.9

zOthers

Abbott India

Neutral

4,171

8,864

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

Neutral

492

1,480

1,169

1,286

12.5

16.0

19.7

30.8

25.0

3.3

2.9

10.7

11.6

1.5

1.3

Bajaj Electricals

Neutral

390

3,964

4,646

5,301

6.7

7.6

16.1

22.3

24.3

17.5

4.0

3.4

16.4

19.2

0.8

0.7

Banco Products (India)

Neutral

218

1,558

1,530

1,695

13.2

12.7

19.0

20.0

11.5

10.9

1.8

1.6

0.2

0.9

103.1

Coffee Day Enterprises

Neutral

242

4,989

3,494

3,913

17.4

18.0

4.8

5.7

42.5

2.2

2.0

0.1

1.9

1.7

Ltd

Elecon Engineering

Neutral

583

171

201

15.0

16.2

36.0

43.0

1.4

1.2

0.1

2.8

2.4

Garware Wall Ropes

Neutral

865

1,892

928

1,003

15.2

39.4

43.2

21.9

20.0

3.6

3.1

16.5

15.4

1.9

1.7

Goodyear India*

Neutral

830

1,914

1,717

1,866

11.8

12.3

47.9

49.8

17.3

16.7

2.7

2.3

15.6

15.7

0.8

116.0

Hitachi

Neutral

1,966

5,347

2,355

2,715

10.3

10.8

49.0

60.9

40.1

32.3

9.4

7.4

0.2

2.3

2.0

HSIL

Neutral

390

2,816

2,240

2,670

14.6

15.0

17.0

22.0

22.9

17.7

1.9

1.8

0.1

1.5

1.2

Interglobe Aviation

Neutral

1,149

41,550

22,570

27,955

14.2

15.0

63.6

81.8

18.1

14.1

9.5

8.0

0.5

0.6

1.5

1.1

Jyothy Laboratories

Neutral

431

7,833

1,781

2,044

14.1

15.0

9.4

10.5

46.1

41.1

9.8

9.2

0.2

4.6

4.0

Linc Pen & Plastics

Neutral

234

346

420

462

9.3

15.3

17.1

15.3

13.7

2.6

2.7

16.9

19.5

0.9

0.8

M M Forgings

Neutral

650

785

542

642

20.1

21.0

41.6

56.8

15.6

11.5

2.2

1.8

0.1

0.2

1.9

1.6

Mirza International

Neutral

168

2,015

1,148

1,285

18.0

8.0

9.4

20.8

17.9

3.5

2.9

16.3

16.1

1.9

1.7

Navkar Corporation

Buy

193

265

2,757

561

617

41.5

11.5

12.7

16.8

15.2

1.8

1.6

10.5

10.4

5.6

4.9

Nilkamal

Neutral

1,576

2,352

2,317

2,525

11.4

11.1

96.0

105.0

16.4

15.0

2.8

2.4

0.2

1.0

0.9

www.angelbroking.com

Stock Watch

September 20, 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

247

2,080

1,987

2,379

7.6

9.0

12.4

18.3

19.9

13.5

2.8

2.5

8.2

13.2

1.2

1.0

Radico Khaitan

Neutral

169

2,251

1,811

1,992

13.2

8.1

8.8

20.9

19.2

2.1

2.3

10.1

12.0

1.6

1.4

Relaxo Footwears

Neutral

528

6,345

1,981

2,310

13.7

14.5

12.0

15.5

44.0

34.1

8.6

6.9

0.2

3.3

2.8

Siyaram Silk Mills

Accumulate

2,311

2,500

2,166

1,769

1,981

12.7

113.1

131.1

20.4

17.6

3.2

2.7

15.5

1.4

1.2

Styrolution ABS India* Neutral

934

1,643

1,800

1,980

8.0

8.1

42.0

46.2

22.3

20.2

2.5

2.2

0.1

1.0

0.9

Surya Roshni

Neutral

318

1,394

4,870

5,320

7.7

7.8

22.8

28.1

14.0

11.3

1.9

1.6

0.1

0.5

0.4

TVS Srichakra

Neutral

3,125

2,393

2,729

2,893

12.7

12.5

248.5

265.0

12.6

11.8

3.6

2.9

0.3

0.9

0.8

Visaka Industries

Neutral

655

1,040

1,104

1,214

12.1

12.6

31.0

37.9

21.1

17.3

2.6

2.3

0.1

1.2

1.0

VIP Industries

Neutral

248

3,511

1,450

1,693

10.4

10.5

6.5

7.8

38.0

31.8

8.0

7.0

21.1

22.1

2.4

2.1

Navin Fluorine

Accumulate

659

730

3,247

945

1,154

22.4

22.6

28.7

34.8

23.0

19.0

3.8

3.2

3.0

2.3

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on September 19, 2017

www.angelbroking.com

Market Outlook

September 20, 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

DISCLAIMER

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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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