Market Outlook. Market Cues. News Analysis. Investor s Ready Reckoner. Top Picks. Key Upcoming Events. October 30, 2017

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1 Market Cues Indian markets are likely to open Positive tracking global indices and SGX Nifty. US stock markets hit new peaks on Friday after forecast-beating results from the technology companies including Google s parent company Alphabet, Amazon and Microsoft. The majority of the European markets ended Friday's session with modest gains. Uncertainty over the future of Catalonia was overshadowed by the continued weakening of the Euro. The value of the currency has been falling since the European Central Bank pledged to continue with bond purchases beyond September 2018 yesterday, despite strong growth. Indian shares ended a lackluster session on a flat note Friday as mixed earnings results prompted traders to book some profits at higher levels after recent sharp gains. News Analysis Maruti Suzuki Q2 net up 3.4% at `2,484cr Detailed analysis on Pg2 Investor s Ready Reckoner Key Domestic & Global Indicators Stock Watch: Latest investment recommendations on 150+ stocks Refer Pg5 onwards Top Picks Company Sector Rating CMP (`) Target (`) Upside Blue Star Capital Goods Accumulate Dewan Housing Finance Financials Accumulate Asian Granito Other Buy Navkar Corporation Other Buy KEI Industries Capital Goods Buy More Top Picks on Pg4 Key Upcoming Events Date Region Event Description Previous Reading Consensus Expectations Oct 30 Euro Zone Euro-Zone Consumer Confidence (1.00) (1.00) Oct 31 US Consumer Confidence Oct 31 China PMI Manufacturing Oct 31 Euro Zone Euro-Zone GDP s.a. (QoQ) Nov01 US Initial Jobless claims More Events on Pg7 Domestic Indices Chg (Pts) (Close) BSE Sensex ,157 Nifty (0.2) (21) 10,323 Mid Cap ,380 Small Cap ,304 Bankex (0.8) (234) 28,096 Global Indices Chg (Pts) (Close) Dow Jones ,401 Nasdaq (0.1) (7) 6,557 FTSE ,505 Nikkei ,008 Hang Seng ,439 Shanghai Com ,417 Advances / Declines BSE NSE Advances 1, Declines 1, Unchanged Volumes (` Cr) BSE 5,595 NSE 36,894 Net Inflows (` Cr) Net Mtd Ytd FII 6, ,879 MFs 691 8,851 95,195 Top Gainers Price (`) Chg Unitdspr 3, Fconsumer Enginersin Sparc Niittech Top Losers Price (`) Chg Infratel 419 (8.0) Idbi 62 (8.0) Pnb 196 (8.0) Albk 78 (7.8) Yesbank 307 (7.4) As on October,

2 News Analysis Maruti Suzuki Q2 net up 3.4% at `2,484cr Country's largest carmaker Maruti Suzuki India posted 3.4 per cent rise in net profit at `2,484.3cr for the second quarter ended September 30. The company had reported a net profit of `2,401.5cr for the same period of previous fiscal. Net sales rose 7 per cent to `21,438.1cr for the quarter under review, as against `20,048.6cr a year ago, Maruti Suzuki India (MSI) said in a statement. The company said its net profit increased by only 3.4 per cent due to lower non operating income as the yields of investment were lower compared to last year. Moreover, there was some impact of commodities and advertisement expenses along with increase in effective tax rates, it added. During July-September period, the company sold a total of 4,92,118 vehicles, including 34,717 in overseas markets, a growth of 17.6 per cent over the same period a year ago. Economic and Political News Telangana's `800cr private rail coach factory to generate 2,000 jobs UP govt raises cane price by 3.3% in FY18 Coast Guard's `32,000cr expansion plan to see higher pvt participation Corporate News Indian Oil aims 13.5 mn tonnes of LNG import capacity in 5 years L&T to set up `500cr missile systems plant for armed forces ITC Q2 net increases nearly 6% at `2,640cr PVR Q2 profit down 15% to `25cr

3 Quarterly Bloomberg Brokers Consensus Estimate Tata Steel Ltd - Oct 30, 2017 Particulars ( ` cr) 2QFY18E 2QFY17 y-o-y 1QFY18 q-o-q Sales 32,295 26, , EBIDTA 5,235 2, , % PAT 1,663 (49.3) LIC Housing Finance - Oct 30, 2017 Particulars ( `cr) 2QFY18E 2QFY17 y-o-y 1QFY18 q-o-q PAT Lupin Ltd - Oct 30, 2017 Particulars ( ` cr) 2QFY18E 2QFY17 y-o-y 1QFY18 q-o-q Sales 4,055 4,290 (5.5) 3, EBIDTA 870 1,028 (15.4) % PAT (33.1)

4 Top Picks HHHHH Company Market Cap (` Cr) CMP (`) Target (`) Upside Alkem Laboratories 22,328 1,867 2, Asian Granito 1, Blue Star 7, Dewan Housing Finance 19, Karur Vysya Bank 7, KEI Industries 2, Music Broadcast 2, Navkar Corporation 2, Siyaram Silk Mills 2, TV Today Network 2, Maruti Suzuki 2,45,132 8,115 8, GIC Housing 2, Rationale Strong growth in domestic business due to its leade`hip in acute therapeutic segment. Alkem expects to launch more products in USA, which bodes for its international business. We expect the company would report strong profitability owing to better product mix, higher B2C sales and amalgamation synergy. Favorable 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. Loan growth is likely to pick up after a sluggish FY17. Lower credit cost will help in strong bottom-line growth. Increasing share of CASA will help in NIM improvement. High order book execution in EPC segment, rising B2C sales and higher exports to boost the revenues and profitability Expected to benefit from the lower capex requirement and 15 year long radio broadcast licensing. Massive capacity expansion along with rail advantage at ICD as well CFS augur 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 corporate to benefit the stock. After GST, the company is expected to see higher volumes along with improving product mix. The Gujarat plant will also enable higher operating leverage which will be margin accretive. We expect loan book to grow at 24.3% over next two year; change in borrowing mix will help in NIM improvement.. Source: Company, Angel Research

5 Key Upcoming Events Result Calendar Date October 31, 2017 Company United Phosphorus, LMW, HDFC, IDFC, LIC Housing Fin., Central Bank, Marico, T ata Steel, Lupin Blue Star, IDBI Bank, Syndicate Bank, Dabur India, KPIT Cummins, D B Corp, JSW Steel, L G Balakrishnan & Bros Source: Bloomberg, Angel Research Global economic events release calendar Date Time Country Event Description Unit Period Bloomberg Data Last Reported Estimated Oct 30, :30 PMEuro Zone Euro-Zone Consumer Confidence Value Oct F (1.00) (1.00) Oct 31, :30 PMUS Consumer Confidence S.A./ 1985=100 Oct :30 AMChina PMI Manufacturing Value Oct :30 PMEuro Zone Euro-Zone GDP s.a. (QoQ) % Change 3Q A Nov 01, :00 PMUS Initial Jobless claims Thousands Oct :00 PMUK PMI Manufacturing Value Oct Nov 02, : 30 PMUS FOMC rate decision % Nov :25 PMGermany PMI Manufacturing Value Oct F :25 PMGermany Unemployment change (000's) Thousands Oct (22.00) (10.00) 5:30 PMUK BOE Announces rates % Ratio Nov Nov 03, :00 PMUS Change in N onfarm payrolls Thousands Oct (33.00) :00 PMUS Unnemployment rate % Oct Nov 06, :25 PMGermany PMI Services Value Oct F Nov 08, 2017 China Exports YoY% % Change Oct 8.10 Nov 09, :00 AMChina Consumer Price Index (YoY) % Change Oct 1.60 Source: Bloomberg, Angel Research ngelbr oki ng.c o m

6 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Nov-16 Dec-16 Jan-17 Jan-17 Feb-17 Mar-17 Mar-17 Apr-17 May-17 May-17 Jun-17 Jul-17 Aug-17 Aug-17 Sep-17 Oct-17 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Macro watch Exhibit 1: Quarterly GDP trends Exhibit 2: IIP trends (1.0) (0.2) 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 60.0 Exports yoy growth Imports yoy growth 6.50 Repo rate Reverse Repo rate CRR Source: Bloomberg, Angel Research Source: RBI, Angel Research ngelbr oki ng.c o m

7 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 Global watch Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries Source: Bloomberg, Angel Research Exhibit 2: 2017 GDP Growth projection by IMF (%, yoy) across select developing and developed countries Source: IMF, Angel Research Exhibit 3: One year forward P-E ratio across select developing and developed countries (x) Source: IMF, Angel Research ngelbr oki ng.c o m

8 Stock Watch Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM EPS ( ) PER(x) P/BV(x) RoE EV/Sales(x) Agri / Agri Chemical ( ) Price ( ) ( cr ) FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E Rallis Reduce ,772 1,873 2, United Phosphorus Neutral ,142 18,922 21, Auto & Auto Ancillary Ashok Leyland Neutral ,460 23,339 27, Bajaj Auto Neutral 3,290-95,190 23,936 27, Bharat Forge Buy ,274 7,637 8, Eicher Motors Neutral 31,783-86,521 19,043 22, , Gabriel India Neutral 197-2,836 1,782 2, Hero Motocorp Accumulate 3,797 4,129 75,826 32,239 36, Jamna Auto Industries Neutral 66-2,614 1,441 1, Mahindra and Mahindra Neutral 1,386-86,080 46,971 53, Maruti Accumulate 8,115 8, ,132 81, , Minda Industries Neutral 812-7,015 4,328 5, Motherson Sumi Neutral ,270 55,937 64, Tata Motors Neutral , , , TVS Motor Neutral ,114 13,992 16, Amara Raja Batteries Buy ,699 6,140 7, Exide Industries Neutral ,268 8,689 9, Apollo Tyres Neutral ,397 15,739 17, Ceat Neutral 1,685-6,814 6,661 7, JK Tyres Neutral 146-3,313 8,318 9, Swaraj Engines Neutral 2,005-2, Subros Neutral 263-1,575 1,855 2, Capital Goods BEML Neutral 1,705-7,101 4,286 5, Bharat Electronics Neutral ,334 10,258 12, Voltas Neutral ,964 6,778 8, BHEL Neutral 95-34,952 33,200 39, Blue Star Accumulate ,584 5,220 6, CG Power and Industrial Neutral 82-5,130 6,555 7, , Solutions Greaves Cotton Neutral 131-3,198 1,778 1,

9 Stock Watch Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM EPS ( ) PER(x) P/BV(x) RoE EV/Sales(x) Capital Goods ( ) Price ( ) ( cr ) FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E KEC International Buy ,657 9,779 11, KEI Industries Buy ,521 3,001 3, Thermax Neutral ,755 4,125 4, VATech Wabag Buy ,225 3,867 4, Cement ACC Neutral 1,786-33,538 12,255 13, Ambuja Cements Neutral ,439 10,250 11, India Cements Neutral 195-6,023 6,135 6, JK Cement Neutral 1,005-7,026 4,150 4, J K Lakshmi Cement Neutral 443-5,210 3,422 3, Orient Cement Neutral 171-3,504 2,215 3, UltraTech Cement Neutral 4, ,767 28,250 35, Construction KNR Constructions Neutral 254-3,566 1,846 2, Larsen & Toubro Neutral 1, ,357 95, , Gujarat Pipavav Port Neutral 139-6, PNC Infratech Neutral 184-4,723 2,040 2, Simplex Infra Neutral 526-2,603 6,012 6, Sadbhav Engineering Neutral 316-5,428 3,823 4, NBCC Neutral ,991 9,099 12, MEP Infra Neutral 100-1,618 2,403 2, SIPL Neutral 113-3,963 2,060 2, (5.8) (3.1) (14.2) (2.3) Engineers India Neutral ,224 1,795 2, Financials Axis Bank Buy ,163 32,558 35, Bank of Baroda Neutral ,162 22,533 26, Canara Bank Neutral ,116 17,925 20, Can Fin Homes Buy 496 2,128 6, Cholamandalam Inv. & Accumulate Fin. Co. 1,124 1,230 17,561 2,826 3, Dewan Housing Finance Accumulate ,175 2,676 3, Equitas Holdings Buy ,879 1,125 1, Federal Bank Neutral ,425 4,896 5,

10 Stock Watch Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM EPS ( ) PER(x) P/BV(x) RoE EV/Sales(x) Financials ( ) Price ( ) ( cr ) FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E GIC Housing Buy , HDFC Bank Neutral 1, ,337 55,236 63, ICICI Bank Neutral ,094 42,361 51, Karur Vysya Bank Buy ,678 3,289 3, LIC Housing Finance Neutral ,009 4,895 6, Punjab Natl.Bank Neutral ,761 23,708 25, RBL Bank Neutral ,663 2,309 2, Repco Home Finance Buy , South Ind.Bank Neutral 31-5,594 3,195 3, St Bk of India Neutral , , , Union Bank Neutral ,752 14,650 16, Yes Bank Neutral ,353 11,088 13, FMCG Akzo Nobel India Neutral 1,848-8,863 3,164 3, Asian Paints Neutral 1, ,866 17,603 20, , , Britannia Neutral 4,589-55,095 9,690 11, Colgate Neutral 1,057-28,761 4,420 5, Dabur India Neutral ,800 8,346 9, GlaxoSmith Con* Neutral 4,927-20,723 5,072 5, Godrej Consumer Neutral ,016 10,171 11, HUL Neutral 1, ,161 37,077 41, , , ITC Neutral ,077 44,588 49, Marico Neutral ,114 6,788 7, Nestle* Neutral 7,166-69,089 10,083 11, Tata Global Neutral ,916 7,121 7, Procter & Gamble Hygiene Neutral 8,620-27,981 3,034 3, IT HCL Tech^ Buy 858 1, ,393 52,342 57, Infosys Buy 947 1, ,629 73,963 80, TCS Neutral 2, , , , Tech Mahindra Accumulate ,462 31,015 33,

11 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 ) FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E Wipro Neutral ,346 58,536 61, Media D B Corp Neutral 369-6,792 2,404 2, HT Media Neutral 102-2,385 2,589 2, Jagran Prakashan Buy ,891 2,541 2, Sun TV Network Neutral ,200 3,238 3, Hindustan Media Ventures Neutral 240-1,761 1,002 1, TV Today Network Buy , Music Broadcast Limited Accumulate , Metals & Mining Coal India Neutral ,542 82,301 91, Hind. Zinc Neutral ,499 22,108 24, Hindalco Neutral , , , JSW Steel Neutral ,153 64,500 68, NMDC Neutral ,767 10,209 11, SAIL Neutral 80-33,020 54,100 63, (10.0) Vedanta Neutral ,329 81,206 87, Tata Steel Neutral , , , Oil & Gas GAIL Neutral ,635 53,115 52, ONGC Neutral ,554 83,111 84, Indian Oil Corp Neutral , , , Reliance Industries Neutral , , , Pharmaceuticals Alembic Pharma Buy ,392 3,903 4, Alkem Laboratories Ltd Accumulate 1,867 2,079 22,328 6,320 7, Aurobindo Pharma Accumulate ,568 17,086 19, Aventis* Neutral 4,161-9,583 2,508 2, Cadila Healthcare Reduce ,307 11,584 13, Cipla Sell ,156 16,619 19, Dr Reddy's Neutral 2,395-39,714 15,844 17, GSK Pharma* Neutral 2,531-21,439 3,260 3, Indoco Remedies Sell ,503 1,154 1,

12 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 ) FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E Ipca labs Neutral 524-6,616 3,593 4, Lupin Buy 1,001 1,467 45,218 18,657 21, Natco Pharma Accumulate 965 1,057 16,816 1,886 2, Sun Pharma Neutral ,043 32,899 36, Syngene International Accumulate ,021 1,402 1, Power Tata Power Neutral 85-23,058 32,547 33, NTPC Neutral ,438 86, , Power Grid Accumulate ,491 29,183 32, Real Estate Prestige Estate Neutral ,278 4,607 5, MLIFE Accumulate , Telecom Bharti Airtel Neutral ,914 97, , Idea Cellular Neutral 93-33,544 35,012 37, (4.4) (2.7) (6.8) (4.6) zothers Abbott India Neutral 4,301-9,139 3,244 3, Asian Granito Buy ,458 1,169 1, Bajaj Electricals Neutral 385-3,912 4,646 5, Banco Products (India) Neutral 215-1,535 1,530 1, Coffee Day Enterprises Ltd Neutral 222-4,566 3,494 3, Elecon Engineering Neutral Garware Wall Ropes Neutral 943-2, , Goodyear India* Neutral 808-1,864 1,717 1, Hitachi Neutral 2,379-6,470 2,355 2, HSIL Neutral 410-2,963 2,240 2, Interglobe Aviation Neutral 1,202-43,491 22,570 27, Jyothy Laboratories Neutral 375-6,811 1,781 2, Linc Pen & Plastics Neutral M M Forgings Neutral 846-1, Mirza International Neutral 159-1,913 1,148 1, Navkar Corporation Buy , Nilkamal Neutral 1,600-2,388 2,317 2,

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 ) FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E zothers Parag Milk Foods Neutral 264-2,223 1,987 2, Radico Khaitan Neutral 214-2,844 1,811 1, Relaxo Footwears Neutral 529-6,351 1,981 2, Siyaram Silk Mills Accumulate ,838 1,769 1, Styrolution ABS India* Neutral 1,029-1,810 1,800 1, Surya Roshni Neutral 377-1,654 4,870 5, TVS Srichakra Neutral 3,076-2,355 2,729 2, Visaka Industries Neutral 677-1,074 1,104 1, VIP Industries Accumulate ,941 1,450 1, Navin Fluorine Neutral 734-3, , Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 27, 2017

14 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 Metropolitan 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/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. 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. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the contrary view, if any. 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.