Market Outlook. Dealer s Diary. News & Result Analysis. Markets Today. Net Inflows (May 26, 2015) FII Derivatives (May 27, 2015) Gainers / Losers

Transcription

1 Dealer s Diary Indian markets are expected to open on a flat note tracking the SGX Nifty. Following the sell-off seen in the previous session, U.S. markets showed a substantial rebound over the course of the trading day on Wednesday. The strength on U.S. markets was due to bargain hunting on the heels of the steep drop seen in the previous session, which came amid concerns about the outlook for interest rates. European markets ended Wednesday s session in positive territory. Buying interest was generated by optimistic comments from Greek Prime Minister Alexi Tsipras regarding his nation's negotiations with creditors. The Indian markets closed on a flat note on Wednesday as expectations that the RBI will likely cut rates once again on June 2 helped offset some disappointing earnings and worries over the pace of future Fed rate hikes. News & Result Analysis Result Review: Indoco Remedies, Abbott India Result Preview: Aurobindo Pharmaceuticals, Amara Raja Batteries Refer detailed news and result analysis on the following page Markets Today The trend deciding level for the day is 27,508 / 8,318 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 27,652 27,740 / 8,359 8,383 levels. However, if NIFTY trades below 27,508 / 8,318 levels for the first half-an-hour of trade then it may correct towards 27,420 27,276 / 8,294 8,254 levels. Indices S2 S1 PIVOT R1 R2 SENSEX 27,276 27,420 27,508 27,652 27,740 NIFTY 8,254 8,294 8,318 8,359 8,383 Net Inflows (May 26, 2015) ` cr Purch Sales Net MTD YTD FII 4,085 3, (2,401) 139,570 MFs 1, ,375 43,360 FII Derivatives (May 27, 2015) ` cr Purch Sales Net Open Interest Index Futures 7,237 7,334 (96) 18,375 Stock Futures 16,150 16,688 (538) 53,782 Gainers / Losers Gainer Loser Company Price (`) chg (%) Company Price (`) chg (%) WOCKPHARMA 1, TECHM 549 (14.2) IDBI PUNJLLOYD 25 (5.8) CADILAHC 1, INFRATEL 437 (5.6) BAJAJELEC GATI 181 (5.5) KTKBANK TATAMOTORS 472 (5.1) Domestic Indices Chg (%) (Pts) (Close) BSE Sensex ,565 Nifty (0.1) (5) 8,335 MID CAP ,616 SMALL CAP (0.0) (3) 11,162 BSE HC (0.4) (61) 16,850 BSE PSU ,747 BANKEX ,313 AUTO (2.1) (403) 18,669 METAL ,714 OIL & GAS ,502 BSE IT (1.9) (206) 10,752 Global Indices Chg (%) (Pts) (Close) Dow Jones ,163 NASDAQ ,107 FTSE ,033 Nikkei ,625 Hang Sang ,162 Straits Times ,426 Shanghai Com ,942 Indian ADR Chg (%) (Pts) (Close) INFY (0.2) (0.1) $31.3 WIT $11.7 IBN $10.4 HDB $59.4 Advances / Declines BSE NSE Advances 1, Declines 1, Unchanged Volumes (` cr) BSE 2,870 NSE 17,897

2 Result Review Indoco Remedies (CMP: `390/ TP: / Upside:) For 4QFY2015, Indoco Remedies posted sales of `212cr V/s `219cr expected and `186cr in 4QFY2014, a yoy growth of 13.8%, driven by domestic sales. Domestic market posted sales of `129cr, registering a growth of 17.1% yoy, driven by domestic formulation (`123cr) a yoy growth of 16.7% yoy, while API (`61.4cr) a yoy growth of 25.8%. Exports (`82cr), on the other hand grew by 9.0% yoy, with formulation exports ( `75cr), a yoy growth of 9.9%, while export API, posted a flat growth to end the period at `6.84cr. On the operating front, the EBITDA margins came in at 18.4% V/s 17.3% expected and 18.9% in 4QFY2014, a dip of 46bps yoy. This came inspite of a 78.2% rise in R&D expenditure, on back of the 1.0% rise in the employee expenses. R&D expenses, during the quarter was 3.5% V/s 2.2% in 4QFY2014. Also, during the quarter the deprecation expenses rose by 59.2%, which aided the Adj. PAT, to come in at `19cr V/s `20cr in 4QFY2014, a growth of 1.1% yoy. 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) FY2016E 1, FY2017E 1, Abbott India (CMP: `3,876/ TP: `4,080 -/ Upside: 5.3%) For 4QFY2015, Abbott India reported numbers that were below our estimates. The adjusted top-line for the quarter improved by 20% yoy to `593cr, which was lower than our estimate of `613cr. The adjustment was related to other operating income for the quarter amounting to `8cr, which was received on account of settlement agreement with a vendor to change the terms of distribution arrangement. The raw material cost for the quarter increased by 173bp yoy to 58.7% of sales but this was made up by 92bp yoy and 71bp yoy decline in employee cost and other expenses to 12.9% and 18.2% of sales respectively. This resulted in EBITDA margin declining by 10bp yoy to 10.1%, against our estimate of 14.8%. Owing to the above mentioned `8cr other operating income from change in distribution arrangement, the other income increased by 130.6% yoy to `22cr. Consequently, the adjusted net profit came in at `44cr vis-à-vis our expectation of `65cr. At the current market price, the stock is trading at PE of 26.6x its FY2017E earnings. We maintain our Accumulate rating on the stock with a revised target price of `4,080 based on target PE of 28.0x for FY2017E. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x) FY2016E 2, FY2017E 3,

3 Result Preview Aurobindo Pharmaceuticals (CMP:`1339/TP:`1502/Upside: 12.1) For 4QFY2015, Aurobindo Pharmaceuticals is expected to post sales of `2807cr V/s `2306cr in 4QFY2014, a yoy growth of 21.8%, driven by acquisition. On the operating front, the EBITDA margins are expected to come in at 14.5% V/s 31.2% in 4QFY2014, a dip of 16.7% yoy. The Adj. PAT, to come in at `189cr V/s `511cr in 4QFY2014, a dip of 62.9%. We maintain our accumulate rating on the stock, with a price target of `1,502. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x) FY2016E 14, , FY2017E 16, , Amara Raja Batteries (CMP: ` 864/ TP: `/Upside: ) Amara Raja Batteries Ltd would announce 4QFY2015 results today. We expect revenues to grow 23% yoy to `1,088 cr. Market share gains in the automotive segment coupled with revival in the industrial space is expected to boost the topline. Operating margins would improve 150 bp yoy to 17% on back of operating leverage. EBIDTA is likely to grow healthy 35% yoy to `185 cr. Strong operating performance would boost the profitability. We estimate Net Profit to grow 28% yoy to `108 cr. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x) FY2016E 5, FY2017E 6, Quarterly Bloomberg Brokers Consensus Estimate Bank of India - Net sales 3,949 11,111 (64.5) 11,947 (66.9) Net profit (10.1) Bharat Petroleum Corp Ltd - Net sales 48,162 74,737 (35.6) 57,873 (16.8) EBITDA 3,274 6,358 (48.5) 1, EBITDA margin (%) Net profit 1,932 4,068 (52.5)

4 Coal India Ltd Consol - Net sales 20,840 19, , EBITDA 5,231 5, , EBITDA margin (%) Net profit 4,655 4, , Crompton Greaves Ltd Consol - Net sales 3,814 3, , EBITDA EBITDA margin (%) Net profit (21.6) Hindalco Industries Ltd - Net sales 8,300 8,360 (0.7) 8,472 (2.0) EBITDA (6.1) EBITDA margin (%) Net profit (19.1) Hindustan Petroleum Corp Ltd - Net sales 43,598 64,127 (32.0) 51,045 (14.6) EBITDA 2,652 5,938 (55.3) (41) 0.0 EBITDA margin (%) Net profit 1,552 4,609 (66.3) (325) 0.0 Cummins India Ltd - Net sales 1, , EBITDA (1.7) EBITDA margin (%) Net profit (9.9) NMDC Ltd - Net sales 2,790 3,884 (28.2) 2,944 (5.3) EBITDA 1,585 2,470 (35.8) 1,948 (18.6) EBITDA margin (%) Net profit 1,359 1,962 (30.8) 1,593 (14.7) Oil & Natural Gas Corp Ltd - Net sales 21,758 20, , EBITDA 11,992 9, , EBITDA margin (%) Net profit 5,983 4, ,

5 Power Finance Corp Ltd - Net sales 2,513 5,632 (55.4) 6,435 (60.9) EBITDA 2,427 5,547 (56.2) 6,357 (61.8) EBITDA margin (%) Net profit 1,583 1, , Power Grid Corp of India Ltd - Net sales 4,705 3, , EBITDA 4,037 3, , EBITDA margin (%) Net profit 1,377 1, , Rural Electrification Corp Ltd - Net sales 2,257 4,443 (49.2) 5,205 (56.6) EBITDA 2,209 4,225 (47.7) 4,965 (55.5) EBITDA margin (%) Net profit 1,417 1, , Tata Global Beverages Ltd Consol - Net sales 1,968 1, ,110 (6.7) EBITDA (1.4) EBITDA margin (%) Net profit United Breweries Ltd - Net sales 1, EBITDA EBITDA margin (%) Net profit Economic and Political News Public debt rises 0.9% in Jan-March quarter RBI may cut repo rate by 25 bps on June 2: Assocham No going back on Land Bill, open to changes, says Social Justice Minister Corporate News Zee Learn posts `3.81cr profit in Q4 M&M to launch nine vehicles this year Infosys hopeful of meeting $20bn revenue target by 2020: Sikka

6 Result Calendar Date May 29, 2015 May 30, 2015 Company Tata Global, Amara Raja Batteries, Cummins India, Crompton Greaves, BGR Energy, Power Fin.Corpn., Rural Elec.Corp., Jagran Prakashan, Coal India, NMDC, Hindalco, ONGC, BPCL, HPCL, Indraprasth Gas, Page Industries, Bajaj Electrical, Aurobindo Pharma, Orchid Chemicals, Power Grid Corpn, PTC India M&M, Bosch India, Suzlon Energy, Blue Star, Ramco Cements, India Cements, Reliance Capital, Sun TV Network, PVR, SAIL, MOIL, IOC, Hitachi, Sun Pharma, Cipla, Glenmark Pharma., NTPC, NHPC, Unitech, Anant Raj Nalco, Tide Water Oil India, Surya Roshni, Ipca labs Source: Bloomberg, Angel Research Global economic events release calendar Date Time Country Event Description Unit Period Bloomberg Data Last Reported Estimated May 29, :00PM UK GDP (YoY) % Change 1Q P :00PM US GDP Qoq (Annualised) % Change 1Q S 0.20 (0.90) June 1, :30AM China PMI Manufacturing Value May :00PM UK PMI Manufacturing Value May June 2, :25PM Germany Unemployment change (000's) Thousands May (8.00) -- 11:00AM India RBI Reverse Repo rate % Jun :00AM India RBI Repo rate % Jun :00AM India RBI Cash Reserve ratio % Jun June 3, :15PM Euro Zone ECB announces interest rates % Jun June 4, :30PM UK BOE Announces rates % Ratio Jun June 5, :00PM US Change in Nonfarm payrolls Thousands May :00PM US Unnemployment rate % May :30PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 1Q P June 8, 2015 China Exports YoY% % Change May (6.40) -- June 9, :00AM China Consumer Price Index (YoY) % Change May June 10, 2015 India Imports YoY% % Change May (7.50) -- India Exports YoY% % Change May (14.00) -- 2:00PM UK Industrial Production (YoY) % Change Apr Source: Bloomberg, Angel Research

7 h Macro watch Exhibit 1: Quarterly GDP trends Exhibit 2: IIP trends (%) (%) (1.0) (2.0) (3.0) (4.0) (2.7) QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Source: CSO, Angel Research Source: MOSPI, Angel Research Exhibit 3: Monthly WPI inflation trends Exhibit 4: Manufacturing and services PMI (%) 56.0 Mfg. PMI Services PMI (1.0) (2.0) (3.0) (4.0) 6.2 May Jun-14 Jul Aug Sep Oct-14 (0.2) Nov-14 (0.5) (1.0) Dec-14 Jan-15 (2.2) Feb-15 (2.3) (2.7) Mar-15 Apr Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 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 (%) 30.0 Exports yoy growth Imports yoy growth (%) 9.00 Repo rate Reverse Repo rate CRR (10.0) 5.00 (20.0) 4.00 (30.0) 3.00 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Source: Bloomberg, Angel Research Source: RBI, Angel Research

8 h Global watch Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries (%) (1.0) (2.0) (0.3) Brazil 0.4 Russia 5.3 India 7.0 China 1.3 South Africa 4.7 Indonesia 5.8 Malaysia 2.3 Thailand 2.4 UK 3.0 USA 1.6 Germany 0.2 France (0.8) Japan Source: Bloomberg, Angel Research Exhibit 2: 2014 GDP Growth projection by IMF (%, yoy) across select developing and developed countries (%) (1.0) 0.1 Brazil 0.6 Russia 7.2 India 7.4 China 1.5 South Africa 5.0 Indonesia 6.0 Malaysia 0.7 Thailand 2.6 UK 2.4 USA 1.6 Germany 0.4 France (0.1) 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: Bloomberg, Angel Research

9 h Exhibit 4: Relative performance of indices across globe Returns (%) Country Name of index Closing price 1M 3M 1YR Brazil Bovespa 54,236 (3.7) Russia Micex 1,661 (3.4) (8.7) 14.8 India Nifty 8,335 (0.7) (6.2) 15.8 China Shanghai Composite 4, South Africa Top 40 46,886 (2.3) Mexico Mexbol 44,683 (2.2) Indonesia LQ (2.1) (1.4) 8.2 Malaysia KLCI 1,755 (4.9) (3.5) (6.5) Thailand SET (4.9) (7.6) 4.5 USA Dow Jones 18,163 (0.1) (0.4) 8.5 UK FTSE 7,033 (1.1) Japan Nikkei 20, Germany DAX 11,771 (2.0) France CAC 5,183 (1.8) Source: Bloomberg, Angel Research

10 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 222-4,310 2,075 2, United Phosphorus Neutral ,016 13,698 15, Auto & Auto Ancillary Ashok Leyland Accumulate ,206 16,932 19, Bajaj Auto Neutral 2,306-66,740 25,715 29, Eicher Motors Accumulate 18,363 19,897 49,842 11,809 15, Hero Motocorp Neutral 2,605-52,020 30,674 34, L G Balakrishnan & Bros Accumulate ,254 1, Mahindra and Mahindra Accumulate 1,225 1,343 76,090 41,266 45, Maruti Accumulate 3,722 4, ,425 57,615 68, Setco Automotive Buy Tata Motors Buy , , , TVS Motor Accumulate ,210 11,950 14, Amara Raja Batteries Neutral ,761 5,355 6, Exide Industries Accumulate ,209 7,919 9, Apollo Tyres Neutral 184-9,346 12,956 14, Ceat Buy ,072 6,157 6, JK Tyres Buy ,492 8,019 8, Swaraj Engines Accumulate , Subros Buy ,295 1, Indag Rubber Buy Capital Goods ACE Buy BGR Energy Neutral ,615 3, BHEL Neutral ,957 33,722 35, Blue Star Accumulate ,012 3,619 4, Crompton Greaves Buy ,539 15,252 16, Inox Wind Buy ,659 4,980 5, KEC International Neutral 114-2,927 8,791 9, Thermax Neutral ,764 6,413 7, Cement ACC Accumulate 1,462 1,650 27,445 12,851 14,

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 Cement Ambuja Cements Neutral ,382 10,930 12, India Cements Buy ,788 5,349 5, JK Cement Buy ,369 4,077 4, J K Lakshmi Cement Buy ,884 3,101 3, Mangalam Cements Buy ,111 1, Orient Cement Neutral 180-3,687 2,185 2, Ramco Cements Accumulate ,572 4,205 4, Shree Cement^ Neutral 11,433-39,830 7,150 8, UltraTech Cement Accumulate 2,882 3,224 79,089 27,562 31, Construction ITNL Buy ,980 7,589 8, Larsen & Toubro Buy 1,634 2, ,955 68,920 82, Gujarat Pipavav Port Neutral , MBL Infrastructures Buy ,115 2,507 2, Financials Allahabad Bank Buy ,894 8,859 9, Axis Bank Buy ,205 26,522 31, Bank of Baroda Neutral ,660 18,934 21, Bank of India Buy ,571 17,402 20, Canara Bank Buy ,589 15,805 17, Dena Bank Buy ,702 3,580 4, Federal Bank Neutral ,360 3,522 4, HDFC Accumulate 1,239 1, ,165 11,198 13, HDFC Bank Accumulate 1,038 1, ,277 38,629 47, ICICI Bank Buy ,819 36,037 41, IDBI Bank Buy ,332 9,806 11, Indian Bank Buy ,802 6,454 7, LIC Housing Finance Buy ,865 2,934 3, Oriental Bank Buy ,154 7,930 8, Punjab Natl.Bank Accumulate ,347 24,160 27, South Ind.Bank Accumulate ,234 1,999 2,

12 Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS ( ) PER(x) P/BV(x) RoE(%) EV/Sales(x) Financials ( ) Price ( ) ( cr ) FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E St Bk of India Accumulate ,346 86, , Union Bank Accumulate ,748 12,995 14, Vijaya Bank Neutral 47-4,021 3,474 3, Yes Bank Buy 870 1,024 36,388 7,006 8, FMCG Asian Paints Neutral ,837 16,553 19, Britannia Neutral 2,581-30,957 8,065 9, Colgate Neutral 1,959-26,636 4,836 5, Dabur India Neutral ,215 9,370 10, GlaxoSmith Con* Neutral 6,396-26,899 4,919 5, Godrej Consumer Neutral 1,133-38,586 10,168 12, HUL Neutral ,492 34,940 38, ITC Buy ,693 41,068 45, Marico Neutral ,368 6,551 7, Nestle* Neutral 7,065-68,116 11,291 12, Tata Global Buy ,196 8,735 9, IT HCL Tech^ Accumulate 989 1, ,073 41,535 46, Infosys Buy 1,969 2, ,140 58,651 65, TCS Buy 2,617 3, , , , Tech Mahindra Buy ,812 27,754 31, Wipro Buy ,556 54,050 61, Media D B Corp Neutral 363-6,668 2,241 2, HT Media Buy ,232 2,495 2, Jagran Prakashan Buy ,779 1,939 2, Sun TV Network Accumulate ,928 2,779 3, Hindustan Media Ventures Buy , , Metals & Mining Stock Watch Coal India Accumulate ,822 77,595 89, Hind. Zinc Neutral ,119 15,546 16, Hindalco Neutral , , , JSW Steel Buy 918 1,140 22,179 48,125 53,

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 Metals & Mining NMDC Neutral ,394 12,544 13, SAIL Neutral 66-27,321 56,365 63, Vedanta Neutral ,804 81,842 88, Tata Steel Buy , , , Oil & Gas Cairn India Neutral ,735 12,617 14, GAIL Neutral ,348 75,595 85, ONGC Neutral , , , Petronet LNG Neutral ,470 45,759 49, Reliance Industries Accumulate , , , Pharmaceuticals Alembic Pharma Neutral 530-9,989 2,405 2, Aurobindo Pharma Accumulate 1,339 1,502 39,082 14,054 16, Aventis* Accumulate 3,367 3,749 7,754 2,156 2, Cadila Healthcare Neutral 1,846-37,804 10,224 11, Cipla Neutral ,032 14,051 16, Dr Reddy's Accumulate 3,586 3,963 61,065 17,443 20, Dishman Pharma Buy ,254 1,662 1, GSK Pharma* Neutral 3,160-26,769 2,818 3, Indoco Remedies Neutral 368-3,390 1,112 1, Ipca labs Buy ,224 4,270 4, Lupin Neutral 1,752-78,802 14,864 17, Sun Pharma Accumulate 975 1, ,536 38,178 42, Power Tata Power Neutral 76-20,515 38,302 38, NTPC Neutral ,149 89,067 98, Power Grid Buy ,916 20,085 22, Telecom Bharti Airtel Neutral , , , Idea Cellular Neutral ,133 34,282 36, zothers Abbott India Accumulate 3,876 4,132 8,236 2,734 3, Bajaj Electricals Buy ,658 4,845 5, Cravatex Neutral

14 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 Finolex Cables Neutral 251-3,832 2,728 3, Goodyear India* Accumulate ,202 1,536 1, Hitachi Neutral 1,573-4,276 1,684 1, Jyothy Laboratories Neutral 263-4,756 1, MRF Buy 35,735 43,439 15,156 13,524 14, , , Page Industries Neutral 14,525-16,200 1,929 2, Relaxo Footwears Neutral 845-5,070 1,767 2, Siyaram Silk Mills Accumulate 1,078 1,221 1,011 1,653 1, Styrolution ABS India* Buy ,041 1,345 1, Tree House Buy , TVS Srichakra Buy 1,834 2,228 1,404 2,112 2, HSIL Buy ,625 2,349 2, Kirloskar Engines India Ltd Accumulate ,905 2,779 3, M M Forgings Buy ITD Cementation India #N/A Banco Products (India) Neutral ,196 1, Competent Automobiles Accumulate , Nilkamal Accumulate ,947 2, Visaka Industries Buy ,158 1, Transport Corporation of Buy ,748 2,830 3, India Elecon Engineering Buy ,452 1, Surya Roshni Buy ,990 3, MT Educare Buy Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on May 27, 2015 Stock Watch

15 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 MCX Stock Exchange 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.