Market Outlook. Market Cues. Result Review, Preview & News Analysis. Investor s Ready Reckoner. Top Picks. Key Upcoming Events.

Transcription

1 6.( Market Cues Indian markets are likely to negative tracking global cues and SGX Nifty. U.S. indices had a mixed session on Wednesday as a number of earning results came in. Apple Inc. (AAPL) fell by 2.2% after it released a mixed earnings report. Home-improvement retailer Lowe's Cos. Inc. fell 1.6% after it was hit with two downgrades. New home sales rose in September, though the increase was helped by revisions to the previous month s data. UK s FTSE index lost its previous day s gains as commodity prices slumped with crude prices falling below $49. Antofagasta dropped 3.15% after the company guided toward a lower copper output range in Royal Bank of Scotland Group finished higher by 0.73 percent after Clydesdale made a preliminary non-binding proposal to buy its Williams & Glyn operations. Indian indices lost ground for another session as weakness in Tata group stocks pulled down the broader indices lower. Tata Group stocks remained under pressure, with Tata Motors and Tata Steel losing about 5 percent each. Axis bank fell by 8.3% after it reported an 83% decline QoQ in profits for Q2FY17. Domestic Indices Chg (Pts) (Close) BSE Sensex (0.9) (255) 27,837 Nifty (0.9) (76) 8,615 Mid Cap (0.9) (122) 13,421 Small Cap (0.7) (90) 13,429 Bankex (1.9) (432) 22,347 Global Indices Chg (Pts) (Close) Dow Jones ,199 Nasdaq (0.6) (33) 5,250 FTSE (0.8) (60) 6,958 Nikkei ,392 Hang Seng (1.0) (240) 23,325 Shanghai Com (0.5) (16) 3,116 Result Review, Preview & News Analysis Result Review: Cadilla Healthcare, Indoco Remedies Result Preview: Tech Mahindra Hero Motocorp Q2FY17 Results Update to Cyrus Mistry s resignation from Tata Sons Detailed analysis on Pg2 Investor s Ready Reckoner Key Domestic & Global Indicators Stock Watch: Latest investment recommendations on 150+ stocks Refer Pg6 onwards Top Picks Company Sector Rating CMP (`) Target (`) Upside Amara Raja Batteries Auto & Auto Ancill. Buy 1,017 1, HCL Tech IT Buy 791 1, Bharat Electronics Capital Goods Accumulate 1,259 1, Equitas Holdings Financials Buy Navkar Corporation Others Buy More Top Picks on Pg6 Key Upcoming Events Date Region Event Description Previous Reading Consensus Expectations Oct 27 UK GDP (YoY) Oct 27 US Initial Jobless claims Oct 28 Euro Zone Euro Zone Consumer Confidence (8.0) (8.0) Oct 28 UK PMI Manufacturing Oct 31 US GDP QoQ (Annualised) More Events on Pg7 Advances / Declines BSE NSE Advances 1, Declines 1,647 1,099 Unchanged Volumes (` Cr) BSE 3,598 NSE 22,790 Net Inflows (` Cr) Net Mtd Ytd FII (505) (1,501) 48,504 MFs 729 6,016 19,963 Top Gainers Price (`) Chg Ttkprestig 6, Gmrinfra Piind Gati Idea Top Losers Price (`) Chg Axisbank 487 (8.0) Jublfood 1,059 (7.5) Carerating 1,430 (5.9) Cadilahc 388 (4.8) Jswenergy 67 (4.4) As on October 26, 2016

2 Result Review Cadila Healthcare (CMP: `408 / TP: /Upside:) Cadila Healthcare, posted results lower than expected on net profit and sales front. In rupee terms, the consolidated revenues; came in at `2,336cr V/s `2,373cr expected, down 1.6% yoy, mainly driven by pressure on the US generic market. The Formulation business sales (`1,988cr, up 3.2% yoy), mainly lead by the US(`988.8cr, 1.5% dip yoy), Indian Formulation ( `820.9cr, a yoy growth 8.8%), Emerging market Formulations (`113cr, a yoy dip of 3.2%) and Latin America formulations ( `65.6cr, a yoy growth of 24.6%). The other Business & Alliances ( `398.5cr), a yoy growth of 4.0%. Europe Formulations (`55.7cr, a yoy dip of 14.1%), Consumer Wellness (`111.9cr, a 7.6% yoy growth), Animal Healthcare (`122.5cr, a yoy growth of 51.9%), API (`83.2cr, a yoy dip of 7.4%) and Alliances (`25.2cr, a yoy dip of 42.5%). On operating front, the EBITDA margins came in at 21.4% V/s 21.7% expected V/s 22.6% in 2QFY2016. Consequently, Adj. PAT came in at `336.2cr V/s `460.7cr expected V/s `390.9cr in 2QFY2016, yoy de-growth of 14.0%. Other reason in the dip in the net profit was the `40.4cr V/s `109.4cr, a yoy dip of 63.1%. We maintain our neutral rating on the stock. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales March (` cr) (` cr) (`) (x) (x) (x) (x) FY2017E 11, , FY2018E 13, , Indoco Remedies (CMP: `297 / TP:`225 /Upside:-24.2%) Indoco Remedies, posted sales of `276cr V/s `248cr up by 11.6% yoy, mainly on back of domestic sales (`168.8cr, which grew by 22.0% yoy). Overall, the formulations, which posted sales of `261.4cr, grew by 13.0% yoy. The API (`135.9cr) posted a sales dip of 11.0% yoy. On operating front, the gross margins are expected to come in at 64.9% (65.0% expected) V/s 64.4% in 2QFY2016, with EBIDTA margins coming in at 13.5% (15.5% expected) V/s 15.5% in 2QFY2016. Consequently, PAT came in at `22.1cr V/s `22.6cr, a yoy dip of 2.2%. This was against, the expectations of `25cr. We maintain our SELL rating on the stock. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales March (` cr) (` cr) (`) (x) (x) (x) (x) FY2017E 1, FY2018E 1,

3 Result Preview Tech Mahindra (CMP: `425 / TP:`700 /Upside:64.7%) Tech Mahindra, is expected to post sales of US$106mn V/s US$103mn in 1QFY2017, registering a qoq growth of 2.9%. In INR terms, the company posted a `7,068cr V/s `6,921cr, a qoq growth of 2.1%. On EBIDTA margins are expected to come in at 14.6% V/s 14.9% in 1QFY2017. Consequently, PAT is expected to came in at `755cr V/s `750cr in 1QFY2017, a qoq growth of 0.6%.We maintain our buy rating on the stock. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales March (`cr) (`cr) (`) (x) (x) (x) (x) FY2017E 29, , FY2018E 32, , News Analysis Hero Motorcorp Q2FY17 results Hero Motocorp reported 14.5% YoY growth in its sales to `7,796cr. PAT came in at `1,004cr, up 28% over lower input costs. EBITDA was at `1,369cr, up 25% YoY and margins were at 16.2%, vs. 14.9% in Q2FY16. During the quarter, company sold total lakh vehicles, 15.8% more than vehicles sold in Q2FY16. During the quarter, net realizations were down 1.4% YoY to `42,059 per unit. On QoQ basis however net realizations have gone up by 1%. Input costs (COGs) at `28,425, down 4.1% YoY which helped to improve its profitability. The earnings per share for the quarter was at ` We see further scope of improvement in the business over the strong results. Update to Cyrus Mistry s resignation from Tata Sons Yesterday, Cyrus Mistry in a communication to the Tata Sons board and Tata trustees made a number of serious assertions regarding the financial and operational performance of the group as well as group companies. In the communication he asserted that he was a turned into a lame duck chairman as he did not have the independence to make decisions to execute his responsibilities effectively. In the letter, Mr. Mistry also stated that his removal from the post was illegal. This letter goes on to make specific accusations which if true could have a strong impact on the group s performance going forward. We are of the view that these developments would put a pressure on the stock for the short to medium term.

4 Quarterly Bloomberg Brokers Consensus Estimate Bajaj Finance Ltd - Oct 27, 2016 Particulars ( ` cr) 2QFY17E 2QFY16 y-o-y 1QFY17 q-o-q PAT (3.8) Maruti Suzuki India Ltd - Oct 27, 2016 Particulars ( ` cr) 2QFY17E 2QFY16 y-o-y 1QFY17 q-o-q Net sales 15,211 13, , EBITDA 2,215 2,269 (2.4) 2,216 (0.0) EBITDA margin Net profit 1,229 1, ,486 (17.3) Oil & Natural Gas Corp Ltd - Oct 27, 2016 Particulars ( ` cr) 2QFY17E 2QFY16 y-o-y 1QFY17 q-o-q Net sales 18,333 20,563 (10.8) 17, EBITDA 8,476 8,775 (3.4) 8, EBITDA margin Net profit 3,646 4,842 (24.7) 4,233 (13.9) Tech Mahindra Ltd Consol - Oct 27, 2016 Particulars ( ` cr) 2QFY17E 2QFY16 y-o-y 1QFY17 q-o-q Net sales 6,895 6, ,921 (0.4) EBITDA 1,092 1,101 (0.8) 1, EBITDA margin Net profit (7.6) 750 (3.3) JSW Steel Ltd Consol - Oct 27, 2016 Particulars ( ` cr) 2QFY17E 2QFY16 y-o-y 1QFY17 q-o-q Net sales 12,429 10, ,720 (2.3) EBITDA 2,664 1, ,269 (18.5) EBITDA margin Net profit ,109 (31.5) Glenmark Pharmaceuticals Ltd consol - Oct 27, 2016 Particulars ( ` cr) 2QFY17E 2QFY16 y-o-y 1QFY17 q-o-q Net sales 1,979 1, , EBITDA EBITDA margin Net profit United Spirits Ltd - Oct 27, 2016 Particulars ( ` cr) 2QFY17E 2QFY16 y-o-y 1QFY17 q-o-q Net sales 2,263 2, , EBITDA (33.4) EBITDA margin Net profit 74 1,729 (95.7)

5 India Oil Corp Ltd - Oct 27, 2016 Particulars ( ` cr) 2QFY17E 2QFY16 y-o-y 1QFY17 q-o-q Net sales 94,037 85, , EBITDA 8, , ,684 (34.5) EBITDA margin Net profit 4, , ,269 (49.0) ABB India Ltd - Oct 27, 2016 Particulars ( ` cr) 3QCY16E 3QCY15 y-o-y 2QCY16 q-o-q Net sales 2,073 1, ,074 (0.0) EBITDA (4.6) EBITDA margin Net profit (3.5) Economic and Political News Centre to announce 2% dearness allowance for govt. employees and pensioners Government to plan Market Intervention Scheme (MIS) for arecanut Cabinet to consider advancing Budget to Feb 1 Corporate News Sun Pharma buys eye care specialist Ocular Tech for $40m Dr Reddy's Laboratories enters into collaboration with Gland Pharma to market and distribute 8 Abbreviated New Drug Applications (ANDAs) Suzlon forms Joint Venture with Ostro Energy for 50-mw solar project

6 Top Picks Large Cap Company Market Cap (` Cr) CMP (`) Target (`) Upside Amara Raja Batteries 17,379 1,017 1, Axis Bank 1,16, Bharat Electronics 30,227 1,259 1, HCL Tech 1,11, , Infosys 2,33,105 1,015 1, Source: Company, Angel Research Rationale To outpace battery industry growth due to better technological products leading to market share gains in both the automotive OEM and replacement segments. Healthy pace of branch expansion, backed by distribution network, will be the driving force for the bank s retail business and overall earnings. Uptick in defense capex by government when coupled with BELs strong market positioning, indicate that good times are ahead for BEL. The stock is trading at attractive valuations and is factoring all the bad news. Back on the growth trend, expect a long term growth of 14% to be a US$20bn in FY2020. Mid Cap Company Market Cap (` Cr) CMP (`) Target (`) Upside Asian Granito Bajaj Electricals 2, Blue Star 5, Dewan Housing Finance 9, Equitas Holdings 5, Jagran Prakashan 6, Mahindra Lifespace 1, Mirza International 1, Navkar Corporation 2, Siyaram Silk Mills 1,423 1,518 1, TV Today Network 1, Source: Company, Angel Research Rationale We expect the company would report strong profitability owing to better product mix, higher B2C sales and amalgamation synergy. Among the top 4 players in the consumer durables segment. Improved profitability backed by turn around in E&P segment. Strong order book lends earnings visibility. 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. With a focus on the low and medium income (LMI) consumer segment, the company has increased its presence in tier-ii & III cities where the growth opportunity is immense. Strong loan growth backed by diversified loan portfolio and adequate CAR. ROE & ROA likely to remain decent as risk of dilution remains low. Attractive valuations considering growth. 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. Speedier execution and speedier sales, strong revenue visibilty in short-to-long run, attractive valuations We expect the company to report strong growth on back of healthy growth in domestic branded sales (owing to aggressive ad spend and addition in the number of EBOs & multi-brand outlets [MBOs]) and healthy export revenues. Massive capacity expansion along with rail advantage at ICD as well CFS augurs well for the company. Strong brands and distribution network would boost growth going ahead. Stock currently trades at an inexpensive valuation. Market leadership in Hindi news genre and no. 2 viewership ranking in English news genre, exit from the radio business, and anticipated growth in ad spends by corporates to benefit the stock.

7 Key Upcoming Events Result Calendar Date Oct 27, 2016 Oct 28, 2016 Nov 1, 2016 Nov 2, 2016 Nov 3, 2016 Nov 4, 2016 Nov 5, 2016 Company Maruti, TVS Motor, ABB, Vijaya Bank, Tech Mahindra, PVR, JSW Steel, ONGC, IOC, MRF, GSK Pharma, Glenmark Pharma., Dishman Pharma, VRL Logistics United Phosphorus, Bajaj Auto, Subros, IDFC, Nestle, Colgate, Marico, Sesa Goa, Heritage Foods, NTPC Hindustan Media Ventures HT Media Ambuja Cements, Mphasis, MM Forging Union Bank, Allahabad Bank, Competent Automobiles, Transport Corporation of India, Radico Khaitan Amara Raja Batteries, Mangalam Cement, Punjab Natl.Bank, Sterling Tools Source: Bloomberg, Angel Research Global economic events release calendar Date Time Country Event Description Unit Period Bloomberg Data Last Reported Estimated Oct 27, :00PM US Initial Jobless claims Thousands Oct :30PM Euro Zone Euro-Zone Consumer Confidence Value Oct F (8.00) (8.00) Oct 28, :00PM UK GDP (YoY) % Change 3Q A :00PM US GDP Qoq (Annualised) % Change 3Q A Oct 31, :30AM China PMI Manufacturing Value Oct Nov 1, :30PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 3Q A :00PM UK PMI Manufacturing Value Oct Nov 2, :25PM Germany PMI Manufacturing Value Oct F :25PM Germany Unemployment change (000's) Thousands Oct :30PM US FOMC rate decision % Nov Nov 3, :30PM UK BOE Announces rates % Ratio Nov Nov 4, :25PM Germany PMI Services Value Oct F :00PM US Change in Nonfarm payrolls Thousands Oct :00PM US Unnemployment rate % Oct Nov 8, 2016 China Exports YoY% % Change Oct (10.00) -- 3:00PM UK Industrial Production (YoY) % Change Sep Nov 9, 2016 India Imports YoY% % Change Oct (2.50) -- Nov 10, :00AM China Consumer Price Index (YoY) % Change Oct India Exports YoY% % Change Oct Nov 11, :30PM India Industrial Production YoY % Change Sep (0.70) -- Nov 14, :30AM China Industrial Production (YoY) % Change Oct :00PM India Monthly Wholesale Prices YoY% % Change Oct Nov 15, :00PM UK CPI (YoY) % Change Oct :30PM Germany GDP nsa (YoY) % Change 3Q P Source: Bloomberg, Angel Research

8 h Macro watch Exhibit 1: Quarterly GDP trends Exhibit 2: IIP trends QFY QFY QFY QFY QFY QFY15 4QFY QFY16 2QFY QFY QFY QFY (2.0) (4.0) (6.0) 9.9 Oct-15 (3.4) Nov-15 (0.9) Dec-15 (1.6) Jan Feb Mar-16 (1.3) Apr May Jun-16 (2.5) Jul-16 (0.7) Aug-16 Source: CSO, Angel Research Source: MOSPI, Angel Research Exhibit 3: Monthly CPI inflation trends Exhibit 4: Manufacturing and services PMI Oct Nov-15 Dec-15 Jan Feb Mar Apr May-16 Jun Jul Aug Sep Aug-15 Sep-15 Oct-15 Nov-15 Mfg. PMI Dec-15 Jan-16 Feb-16 Mar-16 Services PMI Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-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 (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 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Dec-15 Dec-15 Jan-16 Feb-16 Feb-16 Mar-16 Apr-16 Apr-16 May-16 Jun-16 Jul-16 Jul-16 Aug-16 Sep-16 Sep-16 Oct-16 Source: Bloomberg, Angel Research Source: RBI, Angel Research

9 h Global watch Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries (2.0) (4.0) Brazil (3.8) Russia (0.6) India China South Africa Indonesia Malaysia Thailand UK USA Germany France Japan (6.0) Source: Bloomberg, Angel Research Exhibit 2: 2016 GDP Growth projection by IMF (%, yoy) across select developing and developed countries (3.3) (0.8) (2.0) (4.0) Brazil 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 Indonesia Malaysia Thailand UK USA Germany France Japan Source: IMF, Angel Research

10 h Exhibit 4: Relative performance of indices across globe Returns Country Name of index Closing price 1M 3M 1YR Brazil Bovespa 63, Russia Micex 1,975 (1.7) India Nifty 8,615 (1.0) China Shanghai Composite 3, (7.8) South Africa Top 40 45,011 (0.5) (2.9) (7.4) Mexico Mexbol 47, Indonesia LQ (0.9) Malaysia KLCI 1, (2.6) Thailand SET (1.2) (1.1) 3.6 USA Dow Jones 18,199 (0.5) (1.6) 3.3 UK FTSE 6, Japan Nikkei 17, (4.9) Germany DAX 10, (0.7) France CAC 4, (8.0) 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 ) FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E Agri / Agri Chemical Rallis Neutral 225-4,384 1,937 2, United Phosphorus Neutral ,403 15,176 17, Auto & Auto Ancillary Ashok Leyland Buy ,802 22,407 26, Bajaj Auto Neutral 2,819-81,562 25,093 27, Bharat Forge Neutral ,308 7,726 8, Eicher Motors Neutral 24,419-66,324 16,583 20, Gabriel India Neutral 124-1,786 1,544 1, Hero Motocorp Neutral 3,422-68,324 31,253 35, Jamna Auto Industries Neutral 225-1,797 1,486 1, L G Balakrishnan & Bros Neutral 695-1,091 1,302 1, Mahindra and Mahindra Neutral 1,310-81,354 46,534 53, Maruti Neutral 5, ,380 69,186 82, Minda Industries Neutral 366-2,900 2,728 3, Motherson Sumi Neutral ,319 45,896 53, Rane Brake Lining Neutral 1, Setco Automotive Neutral Tata Motors Neutral , , , TVS Motor Neutral ,989 13,390 15, Amara Raja Batteries Buy 1,017 1,218 17,379 5,429 6, Exide Industries Neutral ,179 7,439 8, Apollo Tyres Accumulate ,636 12,877 14, Ceat Accumulate 1,222 1,450 4,943 7,524 8, JK Tyres Neutral 146-3,302 7,455 8, Swaraj Engines Neutral 1,328-1, Subros Neutral ,488 1, Indag Rubber Neutral Capital Goods ACE Neutral BEML Buy 918 1,157 3,823 3,451 4, Bharat Electronics Accumulate 1,259 1,414 30,227 8,137 9,

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 ) FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E Capital Goods Voltas Neutral ,739 6,511 7, BGR Energy Neutral ,567 33, BHEL Neutral ,156 28,797 34, Blue Star Buy ,265 4,283 5, Crompton Greaves Neutral 75-4,697 5,777 6, Greaves Cotton Neutral 138-3,370 1,755 1, Inox Wind Buy ,778 5,605 6, KEC International Neutral 126-3,251 9,294 10, Thermax Neutral ,115 5,421 5, VATech Wabag Buy ,742 3,136 3, Cement ACC Neutral 1,544-28,988 11,225 13, Ambuja Cements Neutral ,234 9,350 10, India Cements Neutral 156-4,803 4,364 4, JK Cement Neutral 928-6,486 4,398 5, J K Lakshmi Cement Accumulate ,765 2,913 3, Orient Cement Buy ,581 2,114 2, UltraTech Cement Neutral 3, ,089 25,768 30, Construction ITNL Neutral 113-3,729 8,946 10, KNR Constructions Neutral 786-2,209 1,385 1, Larsen & Toubro Accumulate 1,483 1, ,189 67,665 77, Gujarat Pipavav Port Neutral 168-8, Nagarjuna Const. Neutral 92-5,115 8,842 9, PNC Infratech Buy ,148 2,350 2, Simplex Infra Neutral 332-1,642 6,829 7, Power Mech Projects Neutral ,801 2, Sadbhav Engineering Accumulate ,735 3,598 4, NBCC Neutral ,271 7,428 9, MEP Infra Neutral ,877 1, SIPL Neutral 104-3,660 1,036 1, (8.4) (5.6) (22.8) (15.9)

13 Stock Watch Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM EPS ( ) PER(x) P/BV(x) RoE EV/Sales(x) Construction ( ) Price ( ) ( cr ) FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E Engineers India Neutral 270-9,106 1,725 1, Financials Axis Bank Buy ,116 46,932 53, Bank of Baroda Neutral ,749 19,980 23, Canara Bank Neutral ,061 15,225 16, Dewan Housing Finance Accumulate ,297 2,225 2, Equitas Holdings Buy , , Federal Bank Neutral 82-14,089 9,353 10, HDFC Neutral 1, ,209 11,475 13, HDFC Bank Accumulate 1,240 1, ,037 46,097 55, ICICI Bank Neutral ,030 39,029 45, LIC Housing Finance Accumulate ,573 3,712 4, Punjab Natl.Bank Neutral ,643 23,532 23, RBL Bank Accumulate ,071 1,783 2, South Ind.Bank Neutral 24-3,241 6,435 7, St Bk of India Neutral ,095 88,650 98, Union Bank Neutral 145-9,934 13,450 14, Yes Bank Neutral 1,289-54,258 8,978 11, FMCG Asian Paints Neutral 1, ,689 17,128 18, Britannia Accumulate 3,263 3,626 39,154 9,795 11, Colgate Accumulate ,198 4,605 5, Dabur India Accumulate ,141 8,315 9, GlaxoSmith Con* Neutral 5,968-25,100 4,350 4, Godrej Consumer Neutral 1,579-53,765 10,235 11, HUL Neutral ,403 35,252 38, ITC Buy ,372 40,059 44, Marico Accumulate ,247 6,430 7, Nestle* Neutral 6,822-65,772 10,073 11, Tata Global Neutral 145-9,177 8,675 9, Procter & Gamble Hygiene Neutral 7,028-22,813 2,939 3,

14 Stock Watch Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM EPS ( ) PER(x) P/BV(x) RoE EV/Sales(x) IT ( ) Price ( ) ( cr ) FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E HCL Tech^ Buy 791 1, ,527 49,242 57, Infosys Buy 1,015 1, ,105 68,350 77, TCS Accumulate 2,397 2, , , , Tech Mahindra Buy ,284 30,347 33, Wipro Buy ,828 55,440 60, Media D B Corp Neutral 384-7,065 2,297 2, HT Media Neutral 88-2,046 2,693 2, Jagran Prakashan Accumulate ,370 2,355 2, Sun TV Network Neutral ,212 2,850 3, Hindustan Media Ventures Neutral 300-2,204 1,016 1, TV Today Network Accumulate , Metals & Mining Coal India Neutral ,745 84,638 94, Hind. Zinc Neutral ,541 14,252 18, Hindalco Neutral , , , JSW Steel Neutral 1,670-40,358 53,201 58, NMDC Neutral ,795 6,643 7, SAIL Neutral 51-20,940 47,528 53,738 (0.7) 2.1 (1.9) (1.6) Vedanta Neutral ,709 71,744 81, Tata Steel Neutral , , , Oil & Gas Cairn India Neutral ,559 9,127 10, GAIL Neutral ,855 56,220 65, ONGC Neutral , , , Indian Oil Corp Neutral , , , Reliance Industries Neutral 1, , , , Pharmaceuticals Alembic Pharma Neutral ,470 3,483 4, Aurobindo Pharma Accumulate ,165 15,720 18, Sanofi India* Neutral 4,240-9,765 2,357 2, Cadila Healthcare Neutral ,726 11,126 13, Cipla Neutral ,390 15,378 18,

15 Stock Watch Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM EPS ( ) PER(x) P/BV(x) RoE EV/Sales(x) Pharmaceuticals ( ) Price ( ) ( cr ) FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E Dr Reddy's Neutral 3,243-53,741 16,043 18, Dishman Pharma Neutral 228-3,673 1,718 1, GSK Pharma* Neutral 2,920-24,735 3,528 3, Indoco Remedies Neutral 297-2,732 1,112 1, Ipca labs Neutral 620-7,821 3,303 3, Lupin Buy 1,509 1,809 68,014 15,912 18, Sun Pharma Buy ,987 31,129 35, Power Tata Power Neutral 81-21,867 36,916 39, NTPC Neutral ,290 86,605 95, Power Grid Neutral ,050 25,763 29, Real Estate MLIFE Buy ,807 1,152 1, Telecom Bharti Airtel Neutral , , , Idea Cellular Neutral 79-28,338 40,133 43, zothers Abbott India Neutral 4,681-9,947 3,153 3, Bajaj Electricals Buy ,615 5,099 5, Finolex Cables Neutral 439-6,717 2,883 3, Goodyear India* Neutral 773-1,783 1,598 1, Hitachi Neutral 1,523-4,142 2,081 2, Jyothy Laboratories Neutral 355-6,449 1,440 2, Page Industries Neutral 16,718-18,647 2,450 3, Relaxo Footwears Neutral 430-5,166 2,085 2, Siyaram Silk Mills Accumulate 1,518 1,714 1,423 1,799 2, Styrolution ABS India* Neutral 637-1,120 1,440 1, TVS Srichakra Neutral 3,768-2,885 2,304 2, HSIL Neutral 353-2,550 2,384 2, Kirloskar Engines India Ltd Neutral 345-4,995 2,554 2, M M Forgings Neutral Banco Products (India) Neutral 227-1,623 1,353 1, Competent Automobiles Neutral ,137 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 ) FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E Nilkamal Neutral 1,718-2,564 1,995 2, Visaka Industries Neutral ,051 1, Transport Corporation of Neutral 184-1,406 2,671 2, India Elecon Engineering Neutral ,482 1, Surya Roshni Neutral 239-1,047 3,342 3, MT Educare Neutral Radico Khaitan Neutral 139-1,849 1,659 1, Garware Wall Ropes Neutral 543-1, Wonderla Holidays Neutral 403-2, Linc Pen & Plastics Neutral The Byke Hospitality Neutral Interglobe Aviation Neutral ,571 21,122 26, Coffee Day Enterprises Ltd Neutral 223-4,594 2,964 3, Navneet Education Neutral 110-2,618 1,062 1, Navkar Corporation Buy , UFO Moviez Neutral 461-1, VRL Logistics Neutral 314-2,862 1,902 2, Team Lease Serv. Neutral 1,025-1,752 3,229 4, S H Kelkar & Co. Neutral 305-4,409 1,036 1, Quick Heal Neutral 251-1, Narayana Hrudaya Neutral 357-7,292 1,873 2, Manpasand Bever. Neutral 724-4, , Parag Milk Foods Neutral 308-2,593 1,919 2, Mirza International Buy ,130 1,024 1, Asian Granito Buy ,118 1, Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 26, 2016

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