Market Outlook. Market Cues. News & Result Analysis. Investor s Ready Reckoner. Top Picks. Key Upcoming Events. February 2, 2016

Transcription

1 6.( Market Outlook February 2, 2016 Market Cues Indian markets are expected to open flat to positive tracking the SGX Nifty and its asian peers. US markets closed roughly flat after seeing early weakness. The early weakness on Wall Street came amid a sharp drop by the price of crude oil as well as the release of some disappointing Chinese manufacturing data. Crude oil for March delivery tumbled $2 to $31.26 a barrel after rising $0.33 or 0.1 percent to $33.62 a barrel in the previous week. The pullback by the price of crude came after a report from the Chinese National Bureau of Statistics showed that the Chinese manufacturing sector contracted at a faster rate in January, The European markets ended the first session of the new trading week in the red. Following the rally at the end of the prior trading week, stocks gave up early gains Monday due to falling crude oil prices and renewed concerns over China. Indian shares ended a lackluster session in the red, tracking mixed global markets after oil prices fell around 2 percent and disappointing data out of China and South Korea led to growth concerns. Investors looked ahead to the Reserve Bank monetary policy meet due today at 11am, although the central bank is widely expected to keep rates unchanged. News & Result Analysis USFDA Action on Indian Pharma companies Auto January 2016 sales update Result Review: Tech Mahindra, Transport Corporation of India Detailed analysis on Pg2 Investor s Ready Reckoner Key Domestic & Global Indicators Stock Watch: Latest investment recommendations on 150+ stocks Refer P6 onwards Top Picks Company Sector Rating CMP (`) Target (`) Upside Amara Raja Batteries Auto & Auto Ancillary Buy 876 1, HCL Tech IT Buy 879 1, Larsen & Toubro Construction Buy 1,122 1, LIC Housing Finance Financials Buy Navkar Corporation Others Buy More Top Picks on Pg5 Key Upcoming Events Date Region Event Description Previous Reading Consensus Expectations Feb 02 India RBI Repo Rate Feb 04 UK BOE Announces rates Feb 05 US Change in Nonfarm payrolls (thousands) Feb 10 India Exports YoY% (% Change) (14.70) -- Domestic Indices Chg (Pts) (Close) BSE Sensex (0.2) (46) 24,825 Nifty (0.1) (8) 7,556 Mid Cap ,477 Small Cap ,901 Bankex (1.4) (247) 17,357 Global Indices Chg (Pts) (Close) Dow Jones (0.1) (17) 16,449 Nasdaq ,620 FTSE (0.4) (24) 6,060 Nikkei ,865 Hang Seng (0.4) (88) 19,596 Shanghai Com (1.8) (49) 2,689 Advances / Declines BSE NSE Advances 1, Declines 1, Unchanged Volumes (` Cr) BSE 2,604 NSE 16,624 Net Inflows (` Cr) Net Mtd Ytd FII 760 (11,471) (5,480) MFs 586 6,703 75,953 Top Gainers Price (`) Chg Kscl Tataelxsi 2, Gati Vakrangee Amarajabat Top Losers Price (`) Chg Suzlon 19 (8.4) Justdial 566 (7.0) Icicibank 217 (5.6) Syndibank 64 (5.6) Eclerx 1,342 (5.2) As on February 01, 2016

2 February 2, 2016 USFDA Action on Indian Pharma companies: The Indian companies witnessed action from the USFDA which included IPCA Labs, Aurobindo Pharma and Lupin. IPCA Laboratories got a warning letter outlining manufacturing quality lapses observed at three of its Indian factories. The letter concerns the company's finished-drug plants at Piparia in western India, and Indore in central India, as well as the drug ingredients facility at Ratlam in central India. The plants have already been banned from supplying to the United States after the FDA inspected them in July 2014, January 2015 and March 2015, and first highlighted the lapses. IPCA said it has since been trying to fix the problems and has been informing the FDA of its remedial measures. The company is fully committed to resolving these issues at the earliest. While this is negative news given that the company is already on import alert since last one year. it will not impact the financials greatly as the company is already not supplying from these plants apart from the 4 API drugs which constitute around 45% of US sales, the impact on the same is uncertain. Overall US constitute around 12% of sales in FY2015. Thus if these drugs, come under the import alert, then the earnings estimates could be cut by 6%. As of now, we are not changing our estimates on the company until more clarity from the management, though our view is that this letter has lengthened the overall resolution process for the company. Two other pharmaceutical companies that have come under the USFDA scanner are Aurobindo Pharma and Lupin on back of US FDA inspections in their respective plants. US regulator conducted inspections in oral solid facilities of Aurobindio - Unit 3 and Unit 7. While the Unit 3 was cleared with no Form 483 for observations, Unit 7 saw few observations from the regulator. The observations are likely to be minor and more procedural in nature. Thus we are not changing our estimates. The company will have to respond to US FDA regarding the observations. US FDA also inspected Lupin s three plants in Pithampur, Aurangabad and Tarapur. All the three plants have been cleared without any observations. We maintain our recommendations on the stock. Auto sales update for the month of January 2016 Hero Motocorp: Hero Motocorp sales continued to remain under pressure with the company reporting flat sales during the month. The sales were in line with our estimates. HMCL reported volumes of 563,348 units in Jan 2016 as against 558,982 units in the corresponding month last year. While the scooter segment sales were robust with about 20% growth given the two new launches (Maestro Edge and Duet), motorcycle sales declined by about 2% given the weak rural sentiments and market share loss. We have Accumulate rating on the stock TVS Motors: TVS Motors sales grew strongly 12% yoy and were in line with our estimates. TVS continues to outstrip the industry growth on back of success of new launches. Overall two wheeler sales grew 12% yoy to 2.08 lakh units. Motorcycle sales grew 20% yoy to 83,374 units backed by the newly launched Victor. Scooter sales remained healthy growing 14% yoy to 62,552 units. Moped and three wheeler segment sales grew marginally by 1% and 4% respectively. We have Accumulate rating on the stock

3 February 2, 2016 Tata Motors: Tata Motors sales in January 2016 were at 47,034 vehicles, higher by 10%, over 42,595 vehicles sold in January The sales were marginally better than our estimates. M&HCV sales continued to grow at 14,693 nos., higher by 30%, over January The Light & Small Commercial Vehicle sales grew at 15,977 nos., higher by 12% over January 2015 led by recovery in the industry volumes. The overall commercial vehicles sales were at 30,670 nos, an increase of 20% over January Tata Motors domestic passenger vehicles sales were at 10,728 nos., decline of 18%, compared to 13,047 nos mainly due to lack of new product launches. The company's sales from exports were 5,636 nos., in January 2016, higher by 42% compared to 3,961 vehicles in January We currently have Buy rating on the stock. Result Review Tech Mahindra (CMP: `499/ TP: `646 / Upside: 29.5%) Tech Mahindra for 3QFY2016 posted a 0.4% QoQ growth to end the period at US$1,015mn V/s US$1,021mn expected and V/s US$1,011mn in 2QFY2016. In ` terms, the company posted sales of `6,701cr V/s `6,729cr expected, a QoQ growth of 1.3%. On Constant currency (CC), the company posted a 1.2% QoQ growth. The growth was mainly driven by the ROW, which constituted around 23.2% of sales in 3QFY2016 V/s 21.9% of sales in 2QFY2016. USA and Europe constituted 47.8% (48.9% of sales in 2QFY2016) and 28.9% (29.3% of sales in 2QFY2016). In terms of Industry the manufacturing drove the growth. On the operating front, the EBDITA came in at 16.9% V/s 17.2% expected and 16.6% in 2QFY2016, a QoQ expansion of 60bps, while the EBIT came in at 14.3% V/s 14.2% expected and 13.7% in 2QFY2016. On net profit, the company posted a net profit of `759cr V/s `809cr expected V/s `786cr in 2QFY2016, a QoQ de-growth of 3.4%. On the operating matrix, the company had utilisation level of 77% same as last quarter, while the attrition rate was around 20% also in line with the last quarter. In terms of client addition, the company added 13 clients ending with active client base of 801. We remain positive on the stock with a price target of `646. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales March (` cr) (` cr) (`) (x) (x) (x) (x) FY2016E 25, , FY2017E 28, , Transport Corporation of India (CMP:- `253 TP: -/ Upside:- ) For 3QFY2016, Transport Corporation of India Ltd (TCIL) s top-line & bottom-line came in below our estimates. The top-line, at ~`551cr is flat on a YoY basis, with all business segments posting poor performances, barring freight division. For the quarter, the company reported an operating profit of ~`44cr, up ~5% YoY. Further, the company s operating margin expanded by 43bp YoY to 8.0%, primarily on account of lower operating expenses, which were down 207bp as a percentage of sales. The net profit grew by ~11% YoY to ~`19cr mainly due to lower sales growth during the quarter. Currently, we have a NEUTRAL rating on the stock and will update the same post our interaction with the Management.

4 February 2, 2016 Quarterly Bloomberg Brokers Consensus Estimate Crompton Greaves Ltd - February 2, 2016 Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 3,243 3,333 (2.7) 3, EBITDA EBITDA margin Net profit (50.5) 52 (7.7) Cummins India Ltd - February 2, 2016 Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 1,193 1, , EBITDA EBITDA margin Net profit (4.0) DLF Ltd - February 2, 2016 Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 2,531 1, , EBITDA 1, EBITDA margin Net profit Economic and Political News ATF prices cut by sharp 12%, non-subsidised LPG to cost less Industry to uncover its best at Auto Expo to be a challenging year for Asian corporates: Moody's Corporate News Vedanta to ramp up aluminium SEZ capacity from next fiscal New Banks may Get 74% FDI from Start Ramdev Hits Out at Global FMCG Cos

5 February 2, 2016 Top Picks Large Cap Company Market Cap (` Cr) CMP (`) Target (`) Upside Amara Raja Batteries 14, , Ashok Leyland 25, HCL Tech 1,23, , HDFC Bank 2,68,069 1,061 1, Infosys 2,69,041 1,171 1, Larsen & Toubro 1,04,496 1,122 1, LIC Housing Finance 23, 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 1,026 1,095 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.

6 February 02, 2016 Key Upcoming Events Result Calendar Date Feb 2, 2016 Feb 3, 2016 Feb 4, 2016 Feb 5, 2016 Feb 6, 2016 Feb 8, 2016 Feb 9, 2016 Feb 10, 2016 Feb 11, 2016 Feb 12, 2016 Company Amara Raja Batteries, Cummins India, Crompton Greaves, HSIL, DLF Mangalam Cement, Hexaware, IOC, The Byke Hospitality Bajaj Auto, ABB, J K Lakshmi Cements, Mphasis, Tata Steel, GSPL, Styrolution, Visaka Industries, Aventis, MT Educare Bosch India, Vijaya Bank, Goodyear, Lupin, Cadila Healthcare, Divi's Lab., Tata Power Co., PTC India, Radico Khaitan Prakash Industries, TVS Srichakra JK Tyre, GlaxoSmith Con, Hitachi, Sterling Tools, Ipca labs Motherson Sumi, Apollo Tyres, Ramco Cements, Allahabad Bank, Britannia, SAIL, Hindalco, MOIL, GAIL, Petronet LNG, Dr Reddy's, Aurobindo Pharma, CESC Tata Chemicals, Tata Global, Automotive Axle, Ambuja Cements, ACC, India Cements, Rural Elec.Corp., Bank of Maharashtra, Bajaj Electrical, Finolex Cables, GSK Pharma, NHPC Tata Motors, Ashok Leyland, BHEL, BGR Energy, Indian Bank, ONGC, Indraprasth Gas, Page Industries, GIPCL, Coffee Day Enterprises Ltd M&M, FAG Bearings, Nestle, BPCL, HPCL, Sun Pharma Source: Bloomberg, Angel Research Global economic events release calendar Date Time Country Event Description Unit Period Bloomberg Data Last Reported Estimated Feb 2, :25PM Germany Unemployment change (000's) Thousands Jan (14.00) (8.00) 11:00AM India RBI Reverse Repo rate % Feb :00AM India RBI Repo rate % Feb :00AM India RBI Cash Reserve ratio % Feb Feb 3, :25PM Germany PMI Services Value Jan F Feb 4, :00PM US Initial Jobless claims Thousands Jan :30PM UK BOE Announces rates % Ratio Feb Feb 5, :00PM US Change in Nonfarm payrolls Thousands Jan :00PM US Unnemployment rate % Jan Feb 10, 2016 India Imports YoY% % Change Jan (3.90) -- India Exports YoY% % Change Jan (14.70) -- 3:00PM UK Industrial Production (YoY) % Change Dec Feb 12, :30AM 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) -- China Exports YoY% % Change Jan (1.40) -- 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) -- 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) -- 8:30PM Euro Zone Euro-Zone Consumer Confidence Value Feb A (6.30) -- 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 Source: Bloomberg, Angel Research

7 February 2, 2016 h Macro watch Exhibit 1: Quarterly GDP trends Exhibit 2: IIP trends QFY QFY QFY QFY QFY QFY14 1QFY QFY QFY QFY QFY QFY (2.0) (4.0) 2.8 Jan Feb Mar-15 Apr-15 May Jun-15 Jul Aug Sep Oct-15 (3.2) Nov-15 Source: CSO, Angel Research Source: MOSPI, Angel Research Exhibit 3: Monthly CPI inflation trends Exhibit 4: Manufacturing and services PMI Mfg. PMI Services PMI Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec 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 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) Jan-15 Feb-15 Exports yoy growth Mar-15 Apr-15 May-15 Jun-15 Imports yoy growth Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec Feb-15 Mar-15 Apr-15 Repo rate Reverse Repo rate CRR May-15 May-15 Jun-15 Jul-15 Jul-15 Aug-15 Sep-15 Sep-15 Oct-15 Nov-15 Nov-15 Dec-15 Jan-16 Jan-16 Source: Bloomberg, Angel Research Source: RBI, Angel Research

8 February 2, 2016 h Global watch Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries (2.0) (4.0) (6.0) Brazil (4.5) Russia (4.1) India China South Africa Indonesia Malaysia Thailand UK USA Germany France Japan Source: Bloomberg, Angel Research Exhibit 2: 2015 GDP Growth projection by IMF (%, yoy) across select developing and developed countries (3.8) (2.0) (4.0) (6.0) Brazil (3.0) Russia India China South Africa Indonesia Malaysia Thailand UK USA Germany France Japan Source: IMF, Angel Research Exhibit 3: One year forward P-E ratio across select developing and developed countries (x) Brazil Russia India China South Africa Indonesi a Malaysia Thailand UK USA Germany France Japan Source: IMF, Angel Research

9 February 2, 2016 h Exhibit 4: Relative performance of indices across globe Returns Country Name of index Closing price 1M 3M 1YR Brazil Bovespa 40,570 (16.1) (19.4) (21.6) Russia Micex 1,773 (6.4) (5.9) 3.4 India Nifty 7,556 (5.8) (11.3) (13.9) China Shanghai Composite 2,689 (19.4) (12.9) (9.3) South Africa Top 40 43,881 (7.4) (12.8) (3.4) Mexico Mexbol 43,631 (6.1) (7.9) (2.2) Indonesia LQ (0.1) (14.4) Malaysia KLCI 1,668 (0.2) (2.3) (5.8) Thailand SET (7.3) (16.0) (23.8) USA Dow Jones 16,449 (11.2) (8.4) (10.2) UK FTSE 6,060 (3.7) (5.5) (10.3) Japan Nikkei 17,865 (6.7) (6.9) 1.4 Germany DAX 9,758 (10.1) (7.1) (10.0) France CAC 4,392 (11.8) (11.7) (10.8) Source: Bloomberg, Angel Research

10 Stock Watch February 02, 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 164-3,192 2,097 2, United Phosphorus Buy ,745 13,698 15, Auto & Auto Ancillary Ashok Leyland Buy ,983 17,995 21, Bajaj Auto Buy 2,328 2,728 67,368 23,695 27, Bharat Forge Accumulate ,562 7,867 8, Eicher Motors Accumulate 17,074 19,036 46,362 15,379 16, Gabriel India Buy ,250 1,415 1, Hero Motocorp Accumulate 2,535 2,774 50,621 28,561 31, Jamna Auto Industries Neutral 152-1,214 1,292 1, L G Balakrishnan & Bros Neutral ,254 1, Mahindra and Mahindra Buy 1,227 1,449 76,205 39,031 44, Maruti Neutral 3, ,225 57,865 68, Minda Industries Accumulate ,297 2,567 2, Motherson Sumi Buy ,628 39,343 45, Rane Brake Lining Buy Setco Automotive Neutral Tata Motors Buy , , , TVS Motor Accumulate ,032 11,263 13, Amara Raja Batteries Buy 876 1,040 14,968 4,892 5, Exide Industries Buy ,459 6,950 7, Apollo Tyres Buy ,338 12,146 12, Ceat Buy 925 1,119 3,742 6,041 6, JK Tyres Neutral 92-2,080 7,446 7, Swaraj Engines Accumulate , Subros Neutral ,293 1, Indag Rubber Neutral Capital Goods ACE Neutral BEML Neutral 1,049-4,369 3,277 4, Bharat Electronics Accumulate 1,233 1,414 29,603 7,737 8,

11 Stock Watch February 02, 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 ,521 5,363 5, BGR Energy Neutral ,615 3, BHEL Neutral ,377 33,722 35, Blue Star Buy ,193 3,548 3, Crompton Greaves Buy ,818 13,484 14, Greaves Cotton Neutral 128-3,119 1,655 1, Inox Wind Buy ,881 4,980 5, KEC International Neutral 125-3,220 8,791 9, Thermax Neutral 813-9,692 6,413 7, Cement ACC Buy 1,274 1,630 23,923 13,151 14, Ambuja Cements Buy ,030 11,564 12, HeidelbergCement Neutral 70-1,583 1,772 1, India Cements Buy ,801 4,216 4, JK Cement Buy ,444 3,661 4, J K Lakshmi Cement Buy ,537 2,947 3, Mangalam Cements Neutral ,053 1, Orient Cement Buy ,971 1,854 2, Ramco Cements Neutral 385-9,174 4,036 4, Shree Cement^ Neutral 10,678-37,199 7,150 8, UltraTech Cement Buy 2,812 3,282 77,177 25,021 30, Construction ITNL Neutral 81-2,663 7,360 8, KNR Constructions Buy , , Larsen & Toubro Buy 1,122 1, ,496 58,870 65, Gujarat Pipavav Port Neutral 158-7, MBL Infrastructures Buy ,313 2, Nagarjuna Const. Neutral 66-3,655 7,892 8, PNC Infratech Accumulate ,627 1,873 2, Simplex Infra Neutral 278-1,374 5,955 6, Power Mech Projects Neutral ,539 1,

12 Stock Watch February 02, 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 309-5,303 3,481 4, NBCC Accumulate 961 1,089 11,536 7,382 9, MEP Infra Neutral ,956 1, SIPL Neutral 87-3, , Financials Allahabad Bank Neutral 52-3,123 8,569 9, Axis Bank Buy ,028 26,473 31, Bank of Baroda Neutral ,168 18,485 21, Bank of India Neutral 98-7,936 15,972 17, Canara Bank Neutral ,181 15,441 16, Dena Bank Neutral 36-2,297 3,440 3, Federal Bank Neutral 47-8,038 3,477 3, HDFC Neutral 1, ,211 10,358 11, HDFC Bank Buy 1,061 1, ,069 38,309 47, ICICI Bank Buy ,215 34,279 39, IDBI Bank Neutral 59-11,115 9,625 10, Indian Bank Neutral 92-4,404 6,160 6, LIC Housing Finance Buy ,681 3,101 3, Oriental Bank Neutral 109-3,261 7,643 8, Punjab Natl.Bank Neutral 90-17,692 23,638 26, South Ind.Bank Neutral 19-2,498 1,965 2, St Bk of India Buy ,218 82,520 93, Union Bank Neutral 126-8,627 12,646 14, Vijaya Bank Neutral 31-2,629 3,536 3, Yes Bank Neutral ,417 7,190 9, FMCG Asian Paints Neutral ,105 16,553 19, Britannia Neutral 2,801-33,606 8,065 9, Colgate Neutral ,422 4,836 5, Dabur India Accumulate ,093 9,370 10, GlaxoSmith Con* Neutral 5,900-24,813 4,919 5,

13 Stock Watch February 02, 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 1,263-43,008 10,168 12, HUL Neutral ,304 34,940 38, ITC Buy ,951 41,068 45, Marico Neutral ,119 6,551 7, Nestle* Buy 5,463 6,646 52,670 11,291 12, Tata Global Accumulate ,990 8,635 9, IT HCL Tech^ Buy 879 1, ,844 42,038 47, Infosys Buy 1,171 1, ,041 61,850 69, TCS Buy 2,402 2, , , , Tech Mahindra Buy ,245 25,566 28, Wipro Buy ,941 50,808 58, Media D B Corp Accumulate ,812 2,241 2, HT Media Neutral 77-1,789 2,495 2, Jagran Prakashan Buy ,262 2,170 2, Sun TV Network Neutral ,822 2,779 3, Hindustan Media Ventures Neutral 280-2, , Metals & Mining Coal India Buy ,556 76,167 84, Hind. Zinc Accumulate ,711 14,641 14, Hindalco Neutral 71-14, , , JSW Steel Neutral 1,051-25,400 42,308 45, (10.3) (1.0) NMDC Neutral 80-31,856 8,237 10, SAIL Neutral 43-17,635 45,915 53, Vedanta Neutral 70-20,871 71,445 81, Tata Steel Neutral , , , Oil & Gas Cairn India Neutral ,323 11,323 12, GAIL Neutral ,521 64,856 70, ONGC Neutral , , , Petronet LNG Neutral ,166 29,691 31, Indian Oil Corp Accumulate , , ,

14 Stock Watch February 02, 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 Accumulate 1,028 1, , , , Pharmaceuticals Alembic Pharma Neutral ,816 3,274 3, Aurobindo Pharma Accumulate ,832 14,923 17, Aventis* Neutral 4,349-10,016 2,082 2, Cadila Healthcare Accumulate ,637 10,224 11, Cipla Accumulate ,018 14,211 16, Dr Reddy's Buy 3,050 3,933 52,013 16,838 19, Dishman Pharma Neutral 333-2,686 1,733 1, GSK Pharma* Neutral 3,282-27,803 2,870 3, Indoco Remedies Neutral 322-2,967 1,033 1, Ipca labs Buy ,269 3,363 3, Lupin Neutral 1,701-76,652 13,092 16, Sun Pharma Accumulate ,423 28,163 32, Power Tata Power Neutral 61-16,390 35,923 37, NTPC Accumulate ,643 87,064 98, Power Grid Buy ,852 20,702 23, Telecom Bharti Airtel Neutral , , , Idea Cellular Neutral ,750 34,282 36, zothers Abbott India Neutral 5,134-10,909 2,715 3, Bajaj Electricals Buy ,880 4,719 5, Finolex Cables Neutral 228-3,494 2,520 2, Goodyear India* Buy ,141 1,888 1, Hitachi Neutral 1,219-3,315 1,779 2, Jyothy Laboratories Neutral 283-5,133 1,620 1, MRF Buy 34,313 45,575 14,553 20,316 14, , , Page Industries Neutral 12,257-13,671 1,929 2, Relaxo Footwears Neutral 469-5,632 1,767 2, Siyaram Silk Mills Buy 1,095 1,354 1,026 1,636 1, Styrolution ABS India* Neutral 698-1,228 1,271 1,

15 Stock Watch February 02, 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 2,491 3,240 1,907 2,101 2, HSIL Accumulate ,004 2,123 2, Kirloskar Engines India Ltd Neutral 234-3,386 2,403 2, M M Forgings Buy Banco Products (India) Neutral ,208 1, Competent Automobiles Neutral ,040 1, Nilkamal Neutral 1,384-2,065 1,871 2, Visaka Industries Buy ,086 1, Transport Corporation of Neutral 253-1,927 2,830 3, India Elecon Engineering Neutral ,369 1, Surya Roshni Buy ,992 3, MT Educare Neutral Radico Khaitan Buy ,528 1,565 1, Garware Wall Ropes Buy Wonderla Holidays Neutral 384-2, Linc Pen & Plastics Neutral The Byke Hospitality Neutral Interglobe Aviation Neutral ,785 17,022 21, Coffee Day Enterprises Ltd Neutral 260-5,354 2,692 2, Navneet Education Neutral 92-2, , Navkar Corporation Buy , Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on February 01, 2016

16 February 02, 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.