Market Outlook. Market Cues. News & Result Analysis. Investor s Ready Reckoner. Top Picks. Key Upcoming Events. February 11, 2016

Transcription

1 6.( Market Outlook Market Cues Indian markets are expected to open on a Negative note tracking the SGX Nifty and Asian markets. US markets ended yesterday s session on a negative note after giving away its early gains. The volatility continued as the price of crude oil showed wild swings during the day. Oil prices initially increased on reports that indicated that there was an unexpected decline in crude oil inventories. However, oil prices pulled back, as the report also showed increase in gasoline and distillate fuel inventories as well as record high inventories at a key delivery points. The European markets ended Wednesday's session in the green as strong rebound in bank stocks propelled the market higher. Investors kept a close eye on Q&A portion of Federal Reserve Chair Janet Yellen's testimony before the House Financial Services Committee. Indian markets followed their Asian peers, with Bank stocks facing selling pressure. PSU banks suffered after several state-owned banks reported huge losses on account of escalating bad loans. News & Result Analysis Tata Motors group global wholesale sales grow a healthy 16% to 93,355 units in January 2016; JLR sales grow 25% Result Review: Glaxo Pharmaceuticals, Cipla, Surya Roshni Detailed analysis on Pg2 Investor s Ready Reckoner Key Domestic & Global Indicators Stock Watch: Latest investment recommendations on 150+ stocks Domestic Indices Chg (Pts) (Close) BSE Sensex (1.1) (262) 23,759 Nifty (1.1) (83) 7,216 Mid Cap (0.9) (96) 10,018 Small Cap (1.4) (148) 10,278 Bankex (2.0) (344) 16,519 Global Indices Chg (Pts) (Close) Dow Jones (0.6) (100) 15,915 Nasdaq ,284 FTSE ,672 Nikkei (2.3) (372) 15,713 Hang Seng ,288 Shanghai Com (0.6) (18) 2,763 Advances / Declines BSE NSE Advances Declines 2,043 1,277 Unchanged Volumes (` Cr) BSE 2,925 NSE 17,322 Refer P7 onwards Top Picks Company Sector Rating CMP (`) Target (`) Upside Amara Raja Batteries Auto & Auto Ancillary Buy 868 1, HCL Tech IT Buy 827 1, Larsen & Toubro Construction Buy 1,123 1, LIC Housing Finance Financials Buy Navkar Corporation Others Buy More Top Picks on Pg6 Key Upcoming Events Date Region Event Description Previous Reading Consensus Expectations Feb 11 US Initial Jobless Claims Feb 12 India Exports YoY% (% Change) (14.70) -- Feb 12 India Imports YoY% (% Change) (3.90) -- Feb 12 India Industrial Production YoY (% Change) (3.20) -- Net Inflows (` Cr) Net Mtd Ytd FII (636) (1,299) (10,848) MFs 226 (104) 77,861 Top Gainers Price (`) Chg Apollotyre Ceatltd Relinfra Hathway Nhpc Top Losers Price (`) Chg Centralbk 54 (12.4) Albk 46 (9.6) Suzlon 14 (9.6) Pnb 80 (9.0) Ucobank 32 (8.1) As on February 10, 2016

2 Market Outlook Tata Motors Group global wholesales grow a healthy 16% to 93,355 units in January 2016; JLR sales grow 25% The Tata Motors Group global wholesales in January 2016, including Jaguar Land Rover, were at 93,355 nos., higher by 16%, over January Global wholesales of all Tata Motors commercial vehicles and Tata Daewoo range in January 2016 were 36,739 nos., higher by 20%, compared to January 2015 given the strong growth in MHCV segment and recovery in the LCV space. Global wholesales of all passenger vehicles in January 2016 were at 56,616 nos., higher by 14% yoy. Tata Motors passenger vehicle sales in January 2016 were at 11,081 nos., lower by 17%, over January 2015 primarily due to lack of new products. Jaguar Land Rover sales were at 45,535 vehicles growing strongly 25% yoy led by success of new product launches (Jaguar XE, Land Rover Freelander)and low base of the corresponding month last year. Jaguar wholesales for the month were 8,576 vehicles, higher by 62% while Land Rover wholesales for the month were 36,959 vehicles, higher by 18% yoy. We currently have Buy rating on the stock. Result Review Glaxo Pharmaceuticals (CMP: `3,292/ TP: -/ Upside: -) Glaxo Pharmaceuticals, posted results below expectations. For 3QFY2016, the company posted sales of `729cr V/s `730cr expected V/s `646.2cr in last corresponding period a yoy growth of 12.8%. On the operating front, the OPM s came in at 14.%1 V/s 18.0% expected V/s 17.0% during the last corresponding period. This was mainly on back of lower than expected GPM, which came in at 53.1% V/s 56.7% expected. Thus, Adj. net profit came in at `82cr V/s `102.7cr expected V/s `66.1cr during the last corresponding period, a yoy growth of 50.2%. Overall, we are Neutral on the stock. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales Mar (` cr) (` cr) (`) (x) (x) (x) (x) FY2016E 2, FY2017E 3, Cipla (CMP: `539 / TP: `637/ Upside: 18.2%) For 3QFY2016, the company posted lower than expected results. The sales came in at `3,027cr V/s `3367cr expected and V/s 2625cr in 3QFY2015, a yoy growth of 15.3%, mainly lead by exports. The domestic sales (`1,194cr) posted a dip of 0.4%, while Exports (`1833cr) posted a yoy growth of 28.5%. On the operating front, the OPM s are expected to come in at 12.0% V/s 19.9% expected V/s 15.7% in 3QFY2015. The low OPM was, on back of the GPM which came in at 58.9% V/s 63.9% expected and 62.3% in 3QFY2015. According to the Management, the company has lost 2.5% on back of change in distribution policy and around 0.7% impact on back of currency impact of ZAR. Last corresponding period the company had a 2% dip in margins due to one off expenditure. The R&D expenditure during the quarter was 8% of sales compared to 6% of sales during the last corresponding period. Thus the Adj. net profit came in at `343cr V/s

3 Market Outlook `400cr expected and V/s `328cr in 3QFY2015, registering a yoy growth of 4.7%. We maintain our Buy view on the stock, with a price target of `637. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales Mar (` cr) (` cr) (`) (x) (x) (x) (x) FY2016E 14, , FY2017E 16, , Surya Roshni (CMP: `140/ TP: `201/ Upside: 43.9%) For 3QFY2016, Surya Roshni reported a good set of numbers. The top-line for the quarter grew by 8.8% yoy to `770cr ahead of our estimate of `742cr. The top-line was aided by strong performance by the lighting division which grew by 29.6% yoy to `393cr. However, the steel division de grew by 5.5% yoy owing to sharp decline in realizations. The EBITDA margin was flat 8.0% against 8.1% in the last year but it was marginally lower than our estimate of 8.3%. EBITDA at `62cr was also inline with our estimate of `62cr. On account of higher top-line, the net profit grew by 17.3% yoy to `17cr which also is same as our estimate. As for segmental margins, both steel and lighting segments reported marginal declines of 41bp yoy and 72bp yoy to 2.5% and 9.1%, respectively. The company s lighting division is clearly growing at a rapid pace and assisting the company in absorbing the value decline in the steel business owing to decline in realizations. We believe that Surya will continue to gain from its vast dealer network and increasing share of LED lighting and lighting business in its overall top-line. We maintain our Buy recommendation on the stock. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales Mar (` cr) (` cr) (`) (x) (x) (x) (x) FY2016E 2, FY2017E 3, Economic and Political News Rail budget may hike passenger fares Grant 5-yr tax holiday to manufacturing units in SEZs: CII to Govt Rail budget may hike passenger fares Corporate News Tata Motors global sales rise 16% in January 12 firms vie for Odisha's huge iron ore block ITC to invest `3,000cr in 3 projects in Bengal

4 Market Outlook Quarterly Bloomberg Brokers Consensus Estimate Aditya Birla Nuvo Ltd - Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 2,355 2, ,523 (6.7) EBITDA EBITDA margin Net profit (36.6) Ashok Leyland Ltd - Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 4,114 3, ,879 (15.7) EBITDA (27.9) EBITDA margin Net profit (36.6) Bharat Heavy Electricals Ltd - Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 6,279 6, , EBITDA (87.7) (474) (107.6) EBITDA margin Net profit (71.3) (205) (129.8) Hero MotoCorp Ltd - Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 7,291 6, , EBITDA 1, , EBITDA margin Net profit State Bank of India - Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q PAT 4,842 3, ,155 (6.1) Tata Motors Ltd Consol - Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 72,667 69, , EBITDA 9,831 9,910 (0.8) 4, EBITDA margin Net profit 2,992 3,592 (16.7) (411) (827.9) Union Bank of India - Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q PAT (27.4)

5 Market Outlook Coal India Ltd Consol - Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 19,378 17, , EBITDA 4,015 4, , EBITDA margin Net profit 3,423 3, ,

6 Market Outlook Top Picks Large Cap Company Market Cap (` Cr) CMP (`) Target (`) Upside Amara Raja Batteries 14, , Ashok Leyland 24, HCL Tech 1,16, , HDFC Bank 2,56,108 1,014 1, Infosys 2,54,995 1,110 1, Larsen & Toubro 1,04,538 1,123 1, LIC Housing Finance 21, Rationale To outpace battery industry growth due to better technological products leading to market share gains in both the automotive OEM and replacement segments. Earnings to grow strongly given the MHCV cyclical upturn. Focus on exports and LCV's provides additional growth avenue. The stock is trading at attractive valuations and is factoring all the bad news. Strong visibility for a robust 20% earnings trajectory, coupled with high quality of earnings on account of high quality retail business and strategic focus on highly rated corporates. Back on the growth trend, expect a long term growth of 14% to be a US$20bn in FY2020. Well positioned to benefit from such expected gradual recovery in the overall domestic capex cycle, given its presence across various infrastructure segments, its execution capabilities, and its strong balance sheet. LICHF continues to grow its retail loan book at a healthy pace with improvement in asset quality. We expect the company to post a healthy loan book which is likely to reflect in a strong earnings growth. Source: Company, Angel Research Mid Cap Company Market Cap (` Cr) CMP (`) Target (`) Upside Blue Star 2, Garware Wall Ropes Jagran Prakashan 5, Navkar Corporation 2, Radico Khaitan 1, Siyaram Silk Mills 981 1,046 1, Surya Roshni Source: Company, Angel Research Rationale Favourable outlook for the AC industry to augur well for Cooling products business which is out pacing the market growth. EMPPAC division's profitability to improve once operating environment turns around. Change in business focus towards high-margin chronic & lifestyle segments and increasing penetration in Europe and US Economic recovery to have favourable impact on advertising & circulation revenue growth. Further, the acquisition of a radio business (Radio City) would also boost the company's revenue growth. Massive capacity expansion along with rail advantage at ICD as well CFS augurs well for the company Earnings boost on back of stable material prices and favourable pricing environment. Valuation discount to peers provides additional comfort Strong brands and distribution network would boost growth going ahead. Stock currently trades at an inexpensive valuation. Structural shift in the Lighting industry towards LED lighting will drive growth.

7 Market Outlook Key Upcoming Events Result Calendar Date Feb 11, 2016 Feb 12, 2016 Feb 13, 2016 Company Tata Motors, Hero Motocorp, Ashok Leyland, BHEL, BGR Energy, J & K Bank, St Bk of India, Bank of India, Union Bank, Indian Bank, Oriental Bank, Coal India, Nalco, ONGC, Indraprasth Gas, Page Industries, GIPCL, Unitech, Coffee Day Enterprises Ltd M&M, FAG Bearings, CEAT, Canara Bank, IDBI Bank, Andhra Bank, Corporation Bank, Nestle, Sun TV Network, NMDC, Bhushan Steel, Monnet Ispat, IOC, BPCL, HPCL, Cravatex, Sun Pharma, Adani Power, Anant Raj Jyoti Structures, Bank of Baroda, Jindal Steel, MM Forging, HDIL, Competent Automobiles Source: Bloomberg, Angel Research Global economic events release calendar Date Time Country Event Description Unit Period Bloomberg Data Last Reported Estimated Feb 11, :00PM US Initial Jobless claims Thousands Feb Feb 12, 2016 India Imports YoY% % Change Jan (3.90) -- India Exports YoY% % Change Jan (14.70) -- 5:30PM India Industrial Production YoY % Change Dec (3.20) -- 3:30PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 4Q A :30PM Germany GDP nsa (YoY) % Change 4Q P Feb 15, :00PM India Monthly Wholesale Prices YoY% % Change Jan (0.73) (0.11) China Exports YoY% % Change Jan (1.40) (2.00) Feb 16, :00PM UK CPI (YoY) % Change Jan Feb 17, :00PM US Housing Starts Thousands Jan 1, , :00PM US Building permits Thousands Jan 1, , :00PM UK Jobless claims change % Change Jan (4.30) -- 7:45PM US Industrial Production % Jan (0.36) 0.30 US Producer Price Index (mom) % Change Jan (0.70) -- Feb 18, :00AM China Consumer Price Index (YoY) % Change Jan Feb 19, :00PM US Consumer price index (mom) % Change Jan (0.10) (0.10) 8:30PM Euro Zone Euro-Zone Consumer Confidence Value Feb A (6.30) -- Feb 22, :00PM Germany PMI Services Value Feb P :00PM Germany PMI Manufacturing Value Feb P Feb 23, :30PM US Existing home sales Million Jan :30PM US Consumer Confidence S.A./ 1985=100 Feb Feb 24, :30PM US New home sales Thousands Jan Feb 25, :00PM UK GDP (YoY) % Change 4Q P :30PM Euro Zone Euro-Zone CPI (YoY) % Jan F Feb 26, :00PM US GDP Qoq (Annualised) % Change 4Q S Source: Bloomberg, Angel Research

8 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Mar-15 Mar-15 Apr-15 May-15 May-15 Jun-15 Jul-15 Jul-15 Aug-15 Sep-15 Sep-15 Oct-15 Nov-15 Dec-15 Dec-15 Jan-16 Feb-16 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Market Outlook h Macro watch Exhibit 1: Quarterly GDP trends Exhibit 2: IIP trends (2.0) (4.0) (3.2) Source: CSO, Angel Research Source: MOSPI, Angel Research Exhibit 3: Monthly CPI inflation trends Exhibit 4: Manufacturing and services PMI Mfg. PMI Services PMI Source: MOSPI, Angel Research Source: Market, Angel Research; Note: Level above 50 indicates expansion Exhibit 5: Exports and imports growth trends Exhibit 6: Key policy rates 0.0 (5.0) (10.0) (15.0) (20.0) (25.0) (30.0) (35.0) Exports yoy growth Imports yoy growth Repo rate Reverse Repo rate CRR Source: Bloomberg, Angel Research Source: RBI, Angel Research

9 Brazil Russia India China South Africa Indonesia Malaysia Thailand UK USA Germany France Japan Brazil Russia India China South Africa Indonesia Malaysia Thailand UK USA Germany France Japan Brazil Russia India China South Africa Indonesia Malaysia Thailand UK USA Germany France Japan Market Outlook h Global watch Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries (4.5) (4.1) (2.0) (4.0) (6.0) Source: Bloomberg, Angel Research Exhibit 2: 2015 GDP Growth projection by IMF (%, yoy) across select developing and developed countries (3.0) (3.8) (2.0) (4.0) (6.0) Source: IMF, Angel Research Exhibit 3: One year forward P-E ratio across select developing and developed countries (x) Source: IMF, Angel Research

10 Market Outlook h Exhibit 4: Relative performance of indices across globe Returns Country Name of index Closing price 1M 3M 1YR Brazil Bovespa 40,377 (3.3) (12.0) (15.5) Russia Micex 1, (1.3) (1.0) India Nifty 7,216 (5.1) (9.3) (17.2) China Shanghai Composite 2,763 (17.8) (23.0) (16.4) South Africa Top 40 43,007 (1.1) (10.3) (6.3) Mexico Mexbol 42, (6.0) (0.2) Indonesia LQ (9.1) Malaysia KLCI 1,644 (1.3) (1.2) (8.4) Thailand SET (10.1) (21.7) USA Dow Jones 15,915 (2.6) (11.1) (10.9) UK FTSE 5,672 (3.4) (9.9) (16.9) Japan Nikkei 15,713 (11.2) (17.8) (10.5) Germany DAX 9,017 (8.2) (17.9) (17.4) France CAC 4,061 (5.8) (17.3) (14.6) Source: Bloomberg, Angel Research

11 Stock Watch Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM EPS ( ) PER(x) P/BV(x) RoE EV/Sales(x) ( ) Price ( ) ( cr ) FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E Agri / Agri Chemical Rallis Neutral 156-3,038 2,097 2, United Phosphorus Buy ,915 12,500 14, Auto & Auto Ancillary Ashok Leyland Buy ,859 17,995 21, Bajaj Auto Buy 2,371 2,728 68,610 23,695 27, Bharat Forge Buy ,256 7,867 8, Eicher Motors Accumulate 17,910 20,044 48,633 15,556 16, Gabriel India Buy ,147 1,415 1, Hero Motocorp Accumulate 2,547 2,774 50,869 28,561 31, Jamna Auto Industries Buy ,054 1,281 1, L G Balakrishnan & Bros Neutral ,254 1, Mahindra and Mahindra Buy 1,184 1,449 73,559 39,031 44, Maruti Neutral 3, ,256 57,865 68, Minda Industries Buy 833 1,047 1,322 2,523 2, Motherson Sumi Buy ,740 39,343 45, Rane Brake Lining Buy Setco Automotive Neutral Tata Motors Buy , , , TVS Motor Accumulate ,606 11,263 13, Amara Raja Batteries Buy 868 1,040 14,834 4,892 5, Exide Industries Buy ,829 6,950 7, Apollo Tyres Accumulate ,610 12,146 12, Ceat Buy 949 1,119 3,837 6,041 6, JK Tyres Neutral 86-1,952 7,446 7, Swaraj Engines Accumulate , Subros Neutral ,293 1, Indag Rubber Neutral Capital Goods ACE Neutral BEML Neutral 1,001-4,170 3,277 4, Bharat Electronics Buy 1,188 1,414 28,516 7,737 8,

12 Stock Watch Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM EPS ( ) PER(x) P/BV(x) RoE EV/Sales(x) ( ) Price ( ) ( cr ) FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E Capital Goods Voltas Buy ,907 5,363 5, BGR Energy Neutral ,615 3, BHEL Neutral ,342 33,722 35, Blue Star Buy ,970 3,548 3, Crompton Greaves Neutral 128-8,029 13,484 14, Greaves Cotton Neutral 129-3,151 1,655 1, Inox Wind Buy ,697 4,980 5, KEC International Neutral 107-2,744 8,791 9, Thermax Neutral 785-9,351 6,413 7, Cement ACC Buy 1,269 1,630 23,826 13,151 14, Ambuja Cements Buy ,262 11,564 12, HeidelbergCement Neutral 68-1,542 1,772 1, India Cements Buy ,393 4,216 4, JK Cement Buy ,129 3,661 4, J K Lakshmi Cement Buy ,169 2,947 3, Mangalam Cements Neutral ,053 1, Orient Cement Buy ,865 1,854 2, Ramco Cements Neutral 376-8,946 4,036 4, Shree Cement^ Neutral 10,419-36,295 7,150 8, UltraTech Cement Buy 2,806 3,282 77,000 25,021 30, Construction ITNL Neutral 72-2,380 7,360 8, KNR Constructions Buy , , Larsen & Toubro Buy 1,123 1, ,538 58,870 65, Gujarat Pipavav Port Neutral 159-7, MBL Infrastructures Buy ,313 2, Nagarjuna Const. Neutral 61-3,388 7,892 8, PNC Infratech Accumulate ,674 1,873 2, Simplex Infra Neutral 260-1,287 5,955 6, Power Mech Projects Neutral ,539 1,

13 Stock Watch Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM EPS ( ) PER(x) P/BV(x) RoE EV/Sales(x) ( ) Price ( ) ( cr ) FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E Construction Sadbhav Engineering Neutral 284-4,866 3,481 4, NBCC Buy 890 1,089 10,679 7,382 9, MEP Infra Neutral ,956 1, SIPL Neutral 81-2, , Financials Allahabad Bank Neutral 46-2,769 8,569 9, Axis Bank Buy ,579 26,473 31, Bank of Baroda Neutral ,062 18,485 21, Bank of India Neutral 91-7,356 15,972 17, Canara Bank Neutral 183-9,950 15,441 16, Dena Bank Neutral 29-1,865 3,440 3, Federal Bank Neutral 45-7,773 3,477 3, HDFC Neutral 1, ,312 10,358 11, HDFC Bank Buy 1,014 1, ,108 38,309 47, ICICI Bank Buy ,409 34,279 39, IDBI Bank Neutral 54-10,213 9,625 10, Indian Bank Neutral 85-4,090 6,160 6, LIC Housing Finance Buy ,675 3,101 3, Oriental Bank Neutral 96-2,873 7,643 8, Punjab Natl.Bank Neutral 80-15,699 23,638 26, South Ind.Bank Neutral 18-2,437 1,965 2, St Bk of India Buy ,389 82,520 93, Union Bank Neutral 123-8,442 12,646 14, Vijaya Bank Neutral 31-2,663 3,536 3, Yes Bank Neutral ,834 7,190 9, FMCG Asian Paints Neutral ,117 16,553 19, Britannia Neutral 2,723-32,669 8,065 9, Colgate Neutral ,919 4,836 5, Dabur India Accumulate ,642 9,370 10, GlaxoSmith Con* Accumulate 5,817 6,118 24,462 4,919 5,

14 Stock Watch Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM EPS ( ) PER(x) P/BV(x) RoE EV/Sales(x) FMCG ( ) Price ( ) ( cr ) FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E Godrej Consumer Neutral 1,215-41,365 10,168 12, HUL Neutral ,454 34,940 38, ITC Buy ,262 41,068 45, Marico Neutral ,506 6,551 7, Nestle* Buy 5,293 6,646 51,032 11,291 12, Tata Global Buy ,469 8,635 9, IT HCL Tech^ Buy 827 1, ,543 42,038 47, Infosys Buy 1,110 1, ,995 61,850 69, TCS Buy 2,270 2, , , , Tech Mahindra Buy ,548 25,566 28, Wipro Buy ,504 50,808 56, Media D B Corp Accumulate ,888 2,241 2, HT Media Neutral 76-1,769 2,495 2, Jagran Prakashan Buy ,231 2,170 2, Sun TV Network Neutral ,466 2,779 3, Hindustan Media Ventures Neutral 265-1, , Metals & Mining Coal India Buy ,365 76,167 84, Hind. Zinc Accumulate ,471 14,641 14, Hindalco Neutral 67-13, , , JSW Steel Neutral 1,024-24,763 42,308 45, (10.3) (1.0) NMDC Neutral 84-33,284 8,237 10, SAIL Neutral 38-15,632 45,915 53, Vedanta Neutral 67-19,938 71,445 81, Tata Steel Neutral , , , Oil & Gas Cairn India Neutral ,077 11,323 12, GAIL Neutral ,839 64,856 70, ONGC Neutral , , , Petronet LNG Neutral ,848 29,691 31, Indian Oil Corp Buy , , ,

15 Stock Watch Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM EPS ( ) PER(x) P/BV(x) RoE EV/Sales(x) ( ) Price ( ) ( cr ) FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E Oil & Gas Reliance Industries Buy 962 1, , , , Pharmaceuticals Alembic Pharma Neutral ,219 3,274 3, Aurobindo Pharma Buy ,455 14,923 17, Aventis* Neutral 4,184-9,635 2,082 2, Cadila Healthcare Accumulate ,400 10,224 11, Cipla Buy ,287 14,211 16, Dr Reddy's Buy 2,887 3,933 49,231 16,838 19, Dishman Pharma Neutral 327-2,638 1,733 1, GSK Pharma* Neutral 3,239-27,435 2,870 3, Indoco Remedies Neutral 296-2,731 1,033 1, Ipca labs Buy ,826 3,363 3, Lupin Neutral 1,863-83,925 13,092 16, Sun Pharma Accumulate ,150 28,163 32, Power Tata Power Neutral 59-16,011 35,923 37, NTPC Buy ,945 87,064 98, Power Grid Buy ,152 20,702 23, Telecom Bharti Airtel Neutral , , , Idea Cellular Neutral ,040 34,282 36, zothers Abbott India Neutral 4,821-10,245 2,715 3, Bajaj Electricals Buy ,801 4,719 5, Finolex Cables Neutral 222-3,398 2,520 2, Goodyear India* Buy ,112 1,800 1, Hitachi Neutral 1,154-3,138 1,779 2, Jyothy Laboratories Neutral 280-5,076 1,620 1, MRF Buy 33,811 45,575 14,340 20,316 14, , , Page Industries Neutral 11,585-12,921 1,929 2, Relaxo Footwears Neutral 417-5,006 1,767 2, Siyaram Silk Mills Buy 1,046 1, ,636 1, Styrolution ABS India* Buy ,271 1,

16 Stock Watch Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM EPS ( ) PER(x) P/BV(x) RoE EV/Sales(x) zothers ( ) Price ( ) ( cr ) FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E TVS Srichakra Buy 2,433 3,217 1,863 2,035 2, HSIL Accumulate ,949 2,123 2, Kirloskar Engines India Ltd Neutral 214-3,090 2,403 2, M M Forgings Buy Banco Products (India) Neutral ,208 1, Competent Automobiles Neutral ,040 1, Nilkamal Neutral 1,139-1,699 1,871 2, Visaka Industries Buy ,086 1, Transport Corporation of Neutral 232-1,766 2,830 3, India Elecon Engineering Neutral ,359 1, Surya Roshni Buy ,992 3, MT Educare Neutral Radico Khaitan Buy ,418 1,517 1, Garware Wall Ropes Buy Wonderla Holidays Neutral 367-2, Linc Pen & Plastics Neutral The Byke Hospitality Neutral Interglobe Aviation Neutral ,800 17,022 21, Coffee Day Enterprises Ltd Neutral 243-4,996 2,692 2, Navneet Education Neutral 83-1, , Navkar Corporation Buy , Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on February 10, 2016

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