Market Outlook. Market Cues. News & Result Analysis. Investor s Ready Reckoner. Top Picks. Key Upcoming Events. February 9, 2016

Transcription

1 6.( Market Outlook ` Market Cues The Indian markets are likely to open weak, due to weak global cues. The SGX NIFTY is down 50 points. However, the strong the GDP numbers might protect the index from falling sharply. Shares on Wall Street closed lower on Monday, following a volatile session for Europe's stock markets. Analysts said investors remained nervous about slowing global growth, uncertainty about US interest rates and further falls in oil prices. Domestic Indices Chg (Pts) (Close) BSE Sensex (1.3) (330) 24,287 Nifty (1.4) (102) 7,387 Mid Cap (0.2) (24) 10,311 Small Cap (0.0) (2) 10,567 Bankex (0.6) (100) 17,073 European equities fell sharply on Monday, extending the previous week's steep losses, with cyclical sectors losing ground on persistent concerns about the pace of global economic growth. Indian markets were trading flat for most part the day. Last hour of trade however saw a sharp nosedive tracking a sell-off in the European markets. Sensex was down 1.3% mainly led by Tata Motors, ONGC, ITC, Sun Pharma and TCS. News & Result Analysis India GDP grows at 7.3% in the December quarter; full year growth expected at 7.6% Result Review: IPCA Lab Result Preview: Glaxo Pharmaceuticals, Dr Reddys Labs, Aurobindo Pharmaceuticals Detailed analysis on Pg2 Investor s Ready Reckoner Key Domestic & Global Indicators Stock Watch: Latest investment recommendations on 150+ stocks Refer P7 onwards Top Picks Company Sector Rating CMP (`) Target (`) Upside Amara Raja Batteries Auto & Auto Ancillary Buy 871 1, HCL Tech IT Buy 850 1, Larsen & Toubro Construction Buy 1,130 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 10 India Exports YoY% (% Change) (14.70) -- Feb 10 India Imports YoY% (% Change) (3.90) -- Feb 12 India Industrial Production YoY (% Change) (3.20) -- Feb 12 Euro Zone Euro Zone GDP Global Indices Chg (Pts) (Close) Dow Jones (1.1) (178) 16,027 Nasdaq (1.8) (79) 4,284 FTSE (2.7) (159) 5,689 Nikkei ,004 Hang Seng ,288 Shanghai Com (0.6) -18 2,763 Advances / Declines BSE NSE Advances 1, Declines 1, Unchanged Volumes (` Cr) BSE 2,472 NSE 13,840 Net Inflows (` Cr) Net Mtd Ytd FII (317) 21 (10,009) MFs (407) (787) 81,139 Top Gainers Price (`) Chg Pghh 5, Gvkpil Bhusanstl Jubilant Ipcalab Top Losers Price (`) Chg Sobha 268 (5.9) Justdial 545 (4.4) Sadbhav 299 (4.0) Tatamotors 324 (3.9) Bajajfinsv 1,830 (3.9) As on February 08, 2016

2 Market Outlook India GDP grows at 7.3% in the December quarter; full year growth expected at 7.6% The government forecast annual economic growth has been revised upwards to 7.6 per cent in the fiscal year ending in March 2016 after it reported a growth of 7.3% for the December quarter. However, there has been some moderation in growth as compared to the September quarter, when GDP growth came at 7.7 per cent. The government has also now revised the estimate upwards to 7.6% for the year ending March Result Review IPCA Labs (CMP: `647/ TP: Under revision / Upside:) IPCA Labs, posted results lower than expected on all fronts. For 3QFY2016, the company posted sales of `674cr V/s `750cr expected, a yoy de-growth of 10.0%, mainly impacted on back of exports, while domestic formulations witnessed some recovery. Exports ( `338cr), posted a yoy dip of 19.2%, mainly on back of formulations( `221cr) which dipped by 27.5% yoy, while API (`117cr) posted a 3.0% yoy growth. On domestic front, the domestic markets (`336cr) posted a yoy growth of.5% yoy driven by formulations ( `308cr) a 10.8% yoy and API ( `28cr) posted a yoy dip of 24.8%. On operating front, the OPM s came in 11.8% V/s 14.1% expected a V/s 15.6% in 3QFY2015. Lower than expected sales was the main reason for the lower than expected OPM s. This along with the 55.0% yoy rise in the interest expenses, lead the Adj. net profit would come in at `23cr V/s `53cr expected V/s `42cr, yoy de-growth of 44.2%. We maintain our buy with a price target to be revised later. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales Mar (` cr) (` cr) (`) (x) (x) (x) (x) FY2016E 3, FY2017E 3, Result Preview Glaxo Pharmaceuticals (CMP: `3,292/ TP: / Upside: ) Glaxo Pharmaceuticals is expected to posted robust results. For 3QFY2016, the company is expected to post sales of `730cr V/s `646.2cr in last corresponding period a yoy growth of 13.0%. On the operating front, the OPM s is expected to come in at 18.0% V/s 17.0% during the last corresponding period. Price hikes and volume growth during the quarter is expected to be the key driver for the company during the period. Thus, Adj. net profit is expected to come in at `102.7cr V/s `66.1cr during the last corresponding period, a yoy growth of 55.5%. 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,

3 Market Outlook Dr Reddys Labs (CMP: `3071 / TP: `3933/ Upside: 28.1% ) Dr Reddys Labs is expected to post robust results on the bottom-line. For 3QFY2016, the company is expected to post sales of `4420cr V/s `3843cr in 3QFY2015, a yoy growth of 15.0%. The growth should be driven by the USA and domestic formulation market. On operating front, the OPM s are expected to come in at 27.1% V/s 23.0% during the last corresponding period, on back of improved sales mix. R&D expenditure, during the quarter is expected to be 11.2% of sales. Thus, the Adj. net profit to come in at `746cr V/s `574cr in 3QFY2015, a yoy growth of 30.0%. We maintain our buy with a price target of `3933. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales Mar (` cr) (` cr) (`) (x) (x) (x) (x) FY2016E 16, , FY2017E 19, , Aurobindo Pharmaceuticals (CMP: 14.6%) `747/ TP: `856 / Upside: The company is expected to post a robust 20.9% yoy growth in the sales in 3QFY2016 to end the period at `3800cr. The sales growth would be lead by the formulations. On operating front, the gross margins are expected to come in at 53.1% V/s 51.0% in 3QFY2015, which will aid the OPM s to come in at 23.4% V/s 18.7% during the last corresponding period. Thus, the Adj. net profit is expected to come in at `613.4cr V/s `399cr in 3QFY2015, yoy growth of 53.7%. We maintain our accumulate rating 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 14, , FY2017E 17, , Quarterly Bloomberg Brokers Consensus Estimate Punjab National Bank - February 09, 2016 Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q PAT (9.0) Britannia Industries Ltd. Consol - February 09, 2016 Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 2,135 2, ,191 (2.6) EBITDA (7.7) EBITDA margin Net profit (5.5)

4 Market Outlook Motherson Sumi Systems Ltd.Consol - February 09, 2016 Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 9,835 8, , EBITDA EBITDA margin Net profit Hindalco Industries Ltd. - February 09, 2016 Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 8,337 8,471 (1.6) 8,924 (6.6) EBITDA (45.5) 602 (16.4) EBITDA margin Net profit (175) 359 (148.7) 103 (269.9) Steel Authority Of India Ltd. - February 09, 2016 Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 9,490 10,977 (13.5) 9, EBITDA (862) 1,208 (171.4) (1,045) (17.5) EBITDA margin Net profit (1,065) 580 (283.6) (1,055) 0.9 Aurobindo Pharma Ltd. Consol - February 09, 2016 Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 3,603 3, , EBITDA EBITDA margin Net profit Bharat Forge Ltd. Bharat Forge - February 09, 2016 Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 1,128 1,142 (1.2) 1,138 (0.9) EBITDA (9.7) EBITDA margin Net profit (8.2) GAIL (India) Ltd. - February 09, 2016 Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 14,606 14,934 (2.2) 14, EBITDA (0.9) EBITDA margin Net profit (21.0)

5 Market Outlook Economic and Political News Maharashtra aims Rs 4 trillion investments at 'Make in India' week Madhesis call off protest; end Indo-Nepal border blockade Over one lakh jewellery shops on strike on February 10 Corporate News HCL to launch IoT incubation centre for Microsoft Essar Power to expand Hazira power generation capacity by 135Mw Apollo Health in talks with three PE firms to offload stake for Rs 500 cr

6 Market Outlook Top Picks HHHHH Large Cap Company Market Cap (` Cr) CMP (`) Target (`) Upside Amara Raja Batteries 14, , Ashok Leyland 25, HCL Tech 1,19, , HDFC Bank 2,62,006 1,037 1, Infosys 2,63,942 1,149 1, Larsen & Toubro 1,05,251 1,130 1, LIC Housing Finance 22, 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 3, Garware Wall Ropes Jagran Prakashan 5, Navkar Corporation 2, Radico Khaitan 1, Siyaram Silk Mills 971 1,036 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 h Key Upcoming Events Result Calendar Date February 09, 2016 February 10, 2016 February 11, 2016 February 12, 2016 February 13, 2016 Company Motherson Sumi, Bharat Forge, Apollo Tyres, Ramco Cements, Punjab Natl.Bank, Power Fin.Corpn., Allahabad Bank, Central Bank, Dena Bank, Britannia, SAIL, Hindalco, MOIL, GAIL, Essar Oil, Dr Reddy's, Aurobindo Pharma, CESC Tata Chemicals, Tata Global, Automotive Axle, Areva, Ambuja Cements, ACC, India Cements, Rural Elec.Corp., IOB, UCO Bank, Bank of Maharashtra, Petronet LNG, Bajaj Electrical, Finolex Cables, Surya Roshni, Cipla, GSK Pharma, NHPC 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, Sun Pharma, Anant Raj Bank of Baroda, Jindal Steel, Adani Power, HDIL Source: Bloomberg, Angel Research Global economic events release calendar Bloomberg Data Date Time Country Event Description Unit Period Last Reported Estimated Feb 10, 2016 India Imports YoY% % Change Jan (3.90) India Exports YoY% % Change Jan (14.70) 3:00 PM UK Industrial Production (YoY) % Change Dec Feb 11, :00 PM US Initial Jobless claims Thousands Feb Feb 12, :30 PM India Industrial Production YoY % Change Dec (3.20) (0.90) 3:30 PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 4Q A :30 PM Germany GDP nsa (YoY) % Change 4Q P Feb 15, :00 PM India Monthly Wholesale Prices YoY% % Change Jan (0.73) China Exports YoY% % Change Jan (1.40) (2.00) Feb 16, :00 PM UK CPI (YoY) % Change Jan 0.20 Feb 17, :00 PM US Housing Starts Thousands Jan 1, , :00 PM US Building permits Thousands Jan 1, , :00 PM UK Jobless claims change % Change Jan (4.30) 7:45 PM US Industrial Production % Jan (0.36) 0.40 US Producer Price Index (mom) % Change Jan (0.70) Feb 18, :00 AM China Consumer Price Index (YoY) % Change Jan Feb 19, :00 PM US Consumer price index (mom) % Change Jan (0.10) (0.10) 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 (2.0) (4.0) (6.0) (4.5) (4.1) Source: Bloomberg, Angel Research Exhibit 2: 2015 GDP Growth projection by IMF (%, yoy) across select developing and developed countries (2.0) (4.0) (6.0) (3.0) (3.8) Source: IMF, Angel Research Exhibit 3: One year forward P-E ratio across select developing and developed countries (x) Source: IMF, Angel Research

10 Stock Watch February 09, 2016 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 158-3,067 2,097 2, United Phosphorus Buy ,367 12,500 14, Auto & Auto Ancillary Ashok Leyland Buy ,442 17,995 21, Bajaj Auto Buy 2,349 2,728 67,964 23,695 27, Bharat Forge Buy ,919 7,867 8, Eicher Motors Accumulate 18,385 20,044 49,922 15,556 16, Gabriel India Buy ,261 1,415 1, Hero Motocorp Accumulate 2,568 2,774 51,282 28,561 31, Jamna Auto Industries Accumulate ,127 1,281 1, L G Balakrishnan & Bros Neutral ,254 1, Mahindra and Mahindra Buy 1,198 1,449 74,379 39,031 44, Maruti Neutral 3, ,797 57,865 68, Minda Industries Buy 875 1,047 1,389 2,523 2, Motherson Sumi Buy ,905 39,343 45, Rane Brake Lining Buy Setco Automotive Neutral Tata Motors Buy , , , TVS Motor Accumulate ,637 11,263 13, Amara Raja Batteries Buy 871 1,040 14,882 4,892 5, Exide Industries Buy ,774 6,950 7, Apollo Tyres Buy ,986 12,146 12, Ceat Buy 914 1,119 3,699 6,041 6, JK Tyres Neutral 89-2,028 7,446 7, Swaraj Engines Accumulate , Subros Neutral ,293 1, Indag Rubber Neutral Capital Goods ACE Neutral BEML Neutral 1,038-4,322 3,277 4, Bharat Electronics Accumulate 1,230 1,414 29,524 7,737 8,

11 Stock Watch February 09, 2016 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 ,366 5,363 5, BGR Energy Neutral ,615 3, BHEL Neutral ,443 33,722 35, Blue Star Buy ,143 3,548 3, Crompton Greaves Neutral 127-7,982 13,484 14, Greaves Cotton Neutral 128-3,131 1,655 1, Inox Wind Buy ,079 4,980 5, KEC International Neutral 115-2,962 8,791 9, Thermax Neutral 797-9,500 6,413 7, Cement ACC Buy 1,280 1,630 24,037 13,151 14, Ambuja Cements Buy ,565 11,564 12, HeidelbergCement Neutral 72-1,623 1,772 1, India Cements Buy ,539 4,216 4, JK Cement Buy ,250 3,661 4, J K Lakshmi Cement Buy ,234 2,947 3, Mangalam Cements Neutral ,053 1, Orient Cement Buy ,851 1,854 2, Ramco Cements Neutral 381-9,071 4,036 4, Shree Cement^ Neutral 10,355-36,076 7,150 8, UltraTech Cement Buy 2,821 3,282 77,412 25,021 30, Construction ITNL Neutral 75-2,475 7,360 8, KNR Constructions Buy , , Larsen & Toubro Buy 1,130 1, ,251 58,870 65, Gujarat Pipavav Port Neutral 153-7, MBL Infrastructures Buy ,313 2, Nagarjuna Const. Neutral 64-3,541 7,892 8, PNC Infratech Accumulate ,610 1,873 2, Simplex Infra Neutral 265-1,313 5,955 6, Power Mech Projects Neutral ,539 1,

12 Stock Watch February 09, 2016 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 300-5,145 3,481 4, NBCC Accumulate 952 1,089 11,419 7,382 9, MEP Infra Neutral ,956 1, SIPL Neutral 85-2, , Financials Allahabad Bank Neutral 53-3,165 8,569 9, Axis Bank Buy ,196 26,473 31, Bank of Baroda Neutral ,127 18,485 21, Bank of India Neutral 102-8,294 15,972 17, Canara Bank Neutral ,713 15,441 16, Dena Bank Neutral 36-2,294 3,440 3, Federal Bank Neutral 46-7,919 3,477 3, HDFC Neutral 1, ,409 10,358 11, HDFC Bank Buy 1,037 1, ,006 38,309 47, ICICI Bank Buy ,223 34,279 39, IDBI Bank Neutral 57-10,811 9,625 10, Indian Bank Neutral 88-4,239 6,160 6, LIC Housing Finance Buy ,445 3,101 3, Oriental Bank Neutral 108-3,223 7,643 8, Punjab Natl.Bank Neutral 94-18,527 23,638 26, South Ind.Bank Neutral 19-2,505 1,965 2, St Bk of India Buy ,559 82,520 93, Union Bank Neutral 135-9,270 12,646 14, Vijaya Bank Neutral 33-2,848 3,536 3, Yes Bank Neutral ,241 7,190 9, FMCG Asian Paints Neutral ,100 16,553 19, Britannia Neutral 2,858-34,290 8,065 9, Colgate Neutral ,169 4,836 5, Dabur India Accumulate ,137 9,370 10, GlaxoSmith Con* Accumulate 5,820 6,118 24,478 4,919 5,

13 Stock Watch February 09, 2016 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 1,246-42,417 10,168 12, HUL Neutral ,590 34,940 38, ITC Buy ,286 41,068 45, Marico Neutral ,106 6,551 7, Nestle* Buy 5,418 6,646 52,239 11,291 12, Tata Global Buy ,820 8,635 9, IT HCL Tech^ Buy 850 1, ,827 42,038 47, Infosys Buy 1,149 1, ,942 61,850 69, TCS Buy 2,369 2, , , , Tech Mahindra Buy ,522 25,566 28, Wipro Buy ,753 50,808 56, Media D B Corp Accumulate ,888 2,241 2, HT Media Neutral 76-1,775 2,495 2, Jagran Prakashan Buy ,239 2,170 2, Sun TV Network Neutral ,754 2,779 3, Hindustan Media Ventures Neutral 265-1, , Metals & Mining Coal India Buy ,240 76,167 84, Hind. Zinc Neutral ,668 14,641 14, Hindalco Neutral 70-14, , , JSW Steel Neutral 1,049-25,365 42,308 45, (10.3) (1.0) NMDC Neutral 83-33,046 8,237 10, SAIL Neutral 41-16,789 45,915 53, Vedanta Neutral 72-21,257 71,445 81, Tata Steel Neutral , , , Oil & Gas Cairn India Neutral ,426 11,323 12, GAIL Neutral ,572 64,856 70, ONGC Neutral , , , Petronet LNG Neutral ,054 29,691 31, Indian Oil Corp Buy , , ,

14 Stock Watch February 09, 2016 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 ,486 3,274 3, Aurobindo Pharma Accumulate ,657 14,923 17, Aventis* Neutral 4,177-9,620 2,082 2, Cadila Healthcare Accumulate ,517 10,224 11, Cipla Accumulate ,548 14,211 16, Dr Reddy's Buy 3,071 3,933 52,365 16,838 19, Dishman Pharma Neutral 349-2,819 1,733 1, GSK Pharma* Neutral 3,291-27,877 2,870 3, Indoco Remedies Neutral 309-2,845 1,033 1, Ipca labs Buy ,167 3,363 3, Lupin Neutral 1,819-81,948 13,092 16, Sun Pharma Accumulate ,216 28,163 32, Power Tata Power Neutral 59-15,944 35,923 37, NTPC Buy ,584 87,064 98, Power Grid Buy ,550 20,702 23, Telecom Bharti Airtel Neutral , , , Idea Cellular Neutral ,742 34,282 36, zothers Abbott India Neutral 4,916-10,447 2,715 3, Bajaj Electricals Buy ,803 4,719 5, Finolex Cables Neutral 228-3,486 2,520 2, Goodyear India* Buy ,128 1,888 1, Hitachi Neutral 1,190-3,234 1,779 2, Jyothy Laboratories Neutral 282-5,115 1,620 1, MRF Buy 34,185 45,575 14,498 20,316 14, , , Page Industries Neutral 12,013-13,399 1,929 2, Relaxo Footwears Neutral 429-5,153 1,767 2, Siyaram Silk Mills Buy 1,036 1, ,636 1, Styrolution ABS India* Buy ,031 1,271 1,

15 Stock Watch February 09, 2016 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 2,528 3,217 1,936 2,035 2, HSIL Accumulate ,937 2,123 2, Kirloskar Engines India Ltd Neutral 223-3,230 2,403 2, M M Forgings Buy Banco Products (India) Neutral ,208 1, Competent Automobiles Neutral ,040 1, Nilkamal Neutral 1,259-1,878 1,871 2, Visaka Industries Buy ,086 1, Transport Corporation of Neutral 236-1,796 2,830 3, India Elecon Engineering Neutral ,359 1, Surya Roshni Buy ,992 3, MT Educare Neutral Radico Khaitan Buy ,444 1,565 1, Garware Wall Ropes Buy Wonderla Holidays Neutral 380-2, Linc Pen & Plastics Neutral The Byke Hospitality Neutral Interglobe Aviation Neutral ,706 17,022 21, Coffee Day Enterprises Ltd Neutral 246-5,064 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 08, 2016

16 Market Outlook February 09, 2016 Research Team Tel: Website: DISCLAIMER Angel Broking Private Limited (hereinafter referred to as Angel ) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and Metropolitian Stock Exchange of India Limited. It is also registered as a Depository Participant with CDSL and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number INH Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities Market. Angel or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. Angel or its associates/analyst has not received any compensation / managed or co -managed public offering of securities of the company covered by Analyst during the past twelve months. Angel/analyst has not served as an officer, director or employee of company covered by Analyst and has not been engaged in market making activity of the company covered by Analyst. This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may have investment positions in the stocks recommended in this report.