Market Outlook. Market Cues. News Analysis. Investor s Ready Reckoner. Top Picks. Key Upcoming Events. June 29, 2016

Transcription

1 6.( Market Outlook Market Cues Indian markets are expected to open in green tracing SGX Nifty and Global cues. US markets closed more than 1.5% up yesterday, lifted by gains in oil prices, as investors looked for bargains post the Brexit sell-off. Analysts also pointed to improvement in sentiment after initial fears of significant negative spillover from the U.K. vote to leave the European Union. Energy gained over 2.6% and financials closed nearly 2.5% higher to lead all S&P sectors higher. After 2 days of turmoil in the wake of Brexit vote, European Markets eased as most of the indices rose by ~2% at yesterday s close. Recovery at FTSE was seen mostly across sectors that had been hit the most in last 2 trading sessions, i.e. Banks, Property & Airline stocks. Shares of gold miners, which performed well on Monday were amongst the biggest losers as Gold prices weekened. Indian indices gained strength in last couple of hours of trade on Tuesday, as most of their European counterparts were up by ~2%. FMCG and HDFC Group stocks led the support to market. Broader markets also participated in the rally as BSE Midcap and Smallcap indices were up %. News Analysis ITC to invest `4,000cr to set up to 9 plants Pay panel award likely today 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 Auto/Auto Ancillary Buy 862 1, Domestic Indices Chg (Pts) (Close) BSE Sensex ,525 Nifty ,128 Mid Cap ,459 Small Cap ,540 Bankex ,090 Global Indices Chg (Pts) (Close) Dow Jones ,410 Nasdaq ,692 FTSE ,140 Nikkei ,323 Hang Seng (0.3) (55) 20,172 Shanghai Com ,913 Advances / Declines BSE NSE Advances 1,610 1,043 Declines 1, Unchanged Volumes (` Cr) BSE 2,635 NSE 17,067 Net Inflows (` Cr) Net Mtd Ytd FII (69) 3,763 18,132 MFs ,064 HCL Tech IT Buy 713 1, LIC Housing Financials Buy Bharat Electronics Capital Goods Accumulate 1,249 1, Navkar Corporation Others Buy More Top Picks on Pg4 Key Upcoming Events Date Region Event Description Previous Reading Consensus Expectations June 29 US Initial Jobless claims June 30 Euro zone Euro zone Consumer Confidence (7.3) (7.3) June 30 UK PMI Manufacturing July 01 UK GDP (YoY) More Events on Pg5 Top Gainers Price (`) Chg Deltacorp Adanient Punjlloyd Godrejprop Gmdcltd Top Losers Price (`) Chg Mphasis 574 (3.9) Justdial 600 (3.8) Iifl 220 (3.4) Renuka 17 (3.4) Aloktext 4 (3.1) As on June 28, 2016

2 Market Outlook ITC to invest `4,000cr to set up to 9 plants ITC has announced that it will invest `4,000cr over the next 2 3 years to set up 8 9 factories across the country towards manufacture of Food Products. ITC's branded packaged foods division grew by ~11% to clock sales of `7,097cr in FY2016. Food is the second largest business for ITC after cigarettes. ITC recently expanded its new Sunfeast Farmlite biscuits portfolio, which caters to the health conscious consumers, and is looking to tap this fast growing consumer segment. Health segment of the biscuit market is ~1% of industry now, but is the fastest growing segment. Management highlighted that their approach is to have a full portfolio across the segments, as they see this as a big play panning out within the segment, going forward. In order to avoid any product quality issues, management claims that the health benefits are validated by their in-house labs and research centre based at Bengaluru. The company had recently launched Sugar release control Aashirvaad Atta for people who have sugar issue, where the claim is backed by in-house lab. Sunfeast Farmlite biscuits also have multiple variants in Oats range (Oats with Almonds, Oats with Raisins and Oats with Chocolate). The company entered into dairy segment with Ghee in October last year and launched dairy whitener in North East this month. The company is claiming to test waters with all the products at the pan India level in the long-run. The proposed capex, recent product launches when coupled with wide distribution network augurs well for ITC s long-term growth prospects. We maintain ACCUMULATE rating on the stock with price target of `380. Pay panel award likely today Union Cabinet is expected to consider recommendations of 7th Pay Commission today. 7th Pay Commission announced 23.55% increase in pay and allowances of serving central government employees and 24% increase in pension of the retired officers (over 1cr government employees and pensioners would get benefitted). Pay panel in Nov-15 recommended 14.27% hike in Basic pay at junior levels, lowest in last 70 years. The previous 6th Pay Commission recommended 20% hike which the government doubled while implementing it in After considering the increase proposed in allowances, the hike in remunerations comes to 23.55%. Committee of Secretaries, which is tasked with reviewing the recommendations, has given its report and post implementation of such hike from Jan 1, 2016, the total outgo is pegged at `1.02lakh cr. This announcement in the backdrop of expected strong monsoons, in our view could boost consumer demand, thereby benefitting most of the consumption and consumer discretionary related companies. We expect companies like Bluestar, Voltas, Bajaj Electrical to be the key beneficiaries from any such announcement. We continue to maintain BUY rating on these 3 stocks.

3 Market Outlook Economic and Political News Centre spends 22% more on MGNREGS in FY16 Govt procures 1.19 lakh tn of pulses to cool prices Apparel export may fall 5% on global slowdown Corporate News SBI to sell non-core assets to raise `3k cr United Bank gets shareholders' nod to raise `1,000cr Mumbai Metro faces financial crisis

4 Market Outlook Top Picks Large Cap Company Market Cap (` Cr) CMP (`) Target (`) Upside Rationale Amara Raja Batteries 14, , To outpace battery industry growth due to better technological products leading to market share gains in both the automotive OEM and replacement segments. Bharat Electronics 29,974 1,249 1, Uptick in defense capex by government, coupled with BELs strong market positioning, indicate good times ahead for BEL. HCL Tech 1,00, , Stock is trading at attractive valuations & factors all bad news. HDFC Bank 2,95,669 1,168 1, 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. Infosys 2,66,687 1,161 1, Back on the growth trend, expect a long term growth of 14% to be a US$20bn in FY2020. LIC Housing Finance 25, Continues to grow its retail loan book at healthy pace with improvement in asset quality. Expect LICHF to post a healthy loan book which is likely to reflect in a strong earnings growth. NBCC 11, Huge bid pipeline of re-development works at Delhi and other State Governments and opportunity from Smart City, positions NBCC to report strong growth, going forward. Voltas 10, Strong market positioning within the domestic AC markets to continue, EMP business set to revive Source: Company, Angel Research Mid Cap Company Market Cap (` Cr) CMP (`) Target (`) Upside Bajaj Electricals 2, Blue Star 3, Dewan Housing 5, Equitas Holdings 5, IL&FS Transport 2, Jagran Prakashan 5, Mahindra Lifespace 1, Navkar Corporation 3, Radico Khaitan 1, Siyaram Silk Mills 1,006 1,073 1, Source: Company, Angel Research Rationale 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 AC industry to augur well for Cooling products business. 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. Commencement of new projects, downtrend in the interest rate cycle, to lead to stock re-rating 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 visibility in short-to-long run, attractive valuations 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.

5 Market Outlook h Key Upcoming Events Global economic events release calendar Bloomberg Data Date Time Country Event Description Unit Period Last Reported Estimated Jun 29, :00 PM US Initial Jobless claims Thousands Jun Jun 30, :30 PM Euro Zone Euro-Zone Consumer Confidence Value Jun F (7.30) 1:25 PM Germany Unemployment change (000's) Thousands Jun (5.00) 2:00 PM UK PMI Manufacturing Value Jun Jul 01, :00 PM UK GDP (YoY) % Change 1Q F :25 PM Germany PMI Manufacturing Value Jun F :30 AM China PMI Manufacturing Value Jun :00 AM July 05, :25 PM Germany PMI Services Value Jun F July 07, :00 PM UK Industrial Production (YoY) % Change May 1.60 Jul 08, 2016 India Imports YoY% % Change Jun India Exports YoY% % Change Jun :00 PM US Change in Nonfarm payrolls Thousands Jun :00 PM US Unnemployment rate % Jun Jul 10, :00 AM China Consumer Price Index (YoY) % Change Jun Jul 12, :30 PM India Industrial Production YoY % Change May (0.80) Jul 13, :30 PM UK BOE Announces rates % Ratio Jul Jul 14, 2016 China Exports YoY% % Change Jun (4.10) US Producer Price Index (mom) % Change Jun :00 PM India Monthly Wholesale Prices YoY% % Change Jun 0.79 Source: Bloomberg, Angel Research

6 Market Outlook h Macro watch Exhibit 1: Quarterly GDP trends Exhibit 2: IIP trends QFY QFY QFY QFY QFY QFY QFY15 4QFY QFY16 2QFY QFY QFY (2.0) (4.0) (6.0) Jun-15 Jul Aug Sep Oct-15 (3.4) Nov-15 (0.9) Dec-15 (1.6) Jan Feb Mar-16 (0.8) Apr-16 Source: CSO, Angel Research Source: MOSPI, Angel Research Exhibit 3: Monthly CPI inflation trends Exhibit 4: Manufacturing and services PMI 56.0 Mfg. PMI Services PMI Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-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) Exports yoy growth Imports yoy growth Repo rate Reverse Repo rate CRR Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jul-15 Jul-15 Aug-15 Sep-15 Sep-15 Oct-15 Nov-15 Nov-15 Dec-15 Jan-16 Feb-16 Feb-16 Mar-16 Apr-16 Apr-16 May-16 Source: Bloomberg, Angel Research Source: RBI, Angel Research

7 Market Outlook h Global watch Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries (2.0) (4.0) (6.0) Brazil (5.4) Russia (1.2) India China South Africa (0.2) Indonesia Malaysia Thailand UK USA Germany France Japan (8.0) Source: Bloomberg, Angel Research Exhibit 2: 2016 GDP Growth projection by IMF (%, yoy) across select developing and developed countries (3.8) (1.8) (2.0) (4.0) Brazil Russia India China South Africa Indonesia Malaysia Thailand UK USA Germany France Japan (6.0) Source: IMF, Angel Research Exhibit 3: One year forward P-E ratio across select developing and developed countries (x) Brazil 6.8 Russia 18.1 India 12.6 China 16.7 South Africa 17.7 Indonesia 15.3 Malaysia 14.2 Thailand 16.1 UK 15.6 USA 11.7 Germany 13.0 France 12.3 Japan Source: IMF, Angel Research

8 Market Outlook h Exhibit 4: Relative performance of indices across globe Returns Country Name of index Closing price 1M 3M 1YR Brazil Bovespa 50, (1.6) (7.2) Russia Micex 1,857 (3.0) (0.5) 12.9 India Nifty 8,128 (0.4) 5.3 (3.0) China Shanghai Composite 2, (1.6) (38.7) South Africa Top 40 45,107 (5.7) (3.2) (4.1) Mexico Mexbol 44,715 (3.1) (3.2) (0.8) Indonesia LQ (1.5) Malaysia KLCI 1, (4.0) (5.7) Thailand SET (8.7) USA Dow Jones 17,410 (2.3) (1.3) (1.2) UK FTSE 6,140 (2.0) 0.6 (7.1) Japan Nikkei 15,323 (9.0) (9.3) (23.3) Germany DAX 9,447 (8.2) (4.5) (14.9) France CAC 4,089 (9.4) (8.0) (11.2) Source: Bloomberg, Angel Research

9 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 220-4,284 1,612 1, United Phosphorus Accumulate ,430 13,083 15, Auto & Auto Ancillary Ashok Leyland Neutral 99-28,174 17,995 21, Bajaj Auto Neutral 2,626-75,994 22,709 25, Bharat Forge Buy ,263 7,351 8, Eicher Motors Accumulate 19,166 20,044 52,058 15,556 16, Gabriel India Accumulate ,312 1,415 1, Hero Motocorp Neutral 3,026-60,415 28,244 30, Jamna Auto Industries Neutral 170-1,354 1,281 1, L G Balakrishnan & Bros Neutral ,254 1, Mahindra and Mahindra Neutral 1,408-87,472 38,416 42, Maruti Neutral 4, ,060 57,865 68, Minda Industries Neutral 1,154-1,832 2,523 2, Motherson Sumi Accumulate ,812 39,343 45, Rane Brake Lining Buy Setco Automotive Neutral Tata Motors Neutral , , , TVS Motor Accumulate ,115 11,263 13, Amara Raja Batteries Buy 862 1,076 14,717 4,690 5, Exide Industries Neutral ,165 6,950 7, Apollo Tyres Buy ,544 12,056 12, Ceat Buy 814 1,119 3,294 6,041 6, JK Tyres Neutral 87-1,978 7,446 7, Swaraj Engines Neutral 1,148-1, Subros Neutral ,293 1, Indag Rubber Neutral Capital Goods ACE Neutral BEML Buy 840 1,157 3,497 3,277 4, Bharat Electronics Buy 1,249 1,414 29,974 7,295 8,

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 Capital Goods Voltas Buy ,378 5,857 6, BGR Energy Neutral ,615 3, BHEL Neutral ,175 33,722 35, Blue Star Buy ,778 3,770 4, Crompton Greaves Neutral 71-4,472 13,484 14, Greaves Cotton Neutral 136-3,329 1,655 1, Inox Wind Buy ,123 4,406 5, KEC International Neutral 139-3,577 8,791 9, Thermax Neutral 810-9,651 6,413 7, VATech Wabag Neutral 586-3,192 2,722 3, Cement ACC Neutral 1,599-30,028 13,151 14, Ambuja Cements Neutral ,092 11,564 12, HeidelbergCement Neutral 111-2,509 1,772 1, India Cements Neutral 104-3,182 4,216 4, JK Cement Neutral 659-4,608 3,661 4, J K Lakshmi Cement Neutral 387-4,550 2,947 3, Mangalam Cements Neutral ,053 1, Orient Cement Neutral 175-3,591 1,854 2, Ramco Cements Neutral ,574 4,036 4, Shree Cement^ Neutral 14,177-49,389 7,150 8, UltraTech Cement Neutral 3,400-93,317 24,669 29, Construction ITNL Buy ,415 7,360 8, KNR Constructions Neutral 528-1, , Larsen & Toubro Buy 1,473 1, ,294 58,870 65, Gujarat Pipavav Port Neutral 161-7, MBL Infrastructures Buy ,313 2, Nagarjuna Const. Neutral 73-4,031 7,892 8, PNC Infratech Neutral 550-2,821 1,873 2, Simplex Infra Neutral 266-1,318 5,955 6,

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 Construction Power Mech Projects Neutral ,539 1, Sadbhav Engineering Accumulate ,772 3,186 3, NBCC Accumulate ,550 5,838 7, MEP Infra Neutral ,956 1, SIPL Neutral 97-3, , Engineers India Neutral 203-6,847 1,667 1, Financials Allahabad Bank Neutral 68-4,931 8,569 9, Axis Bank Neutral ,870 26,204 29, Bank of Baroda Neutral ,565 18,802 21, (7.4) (4.2) Bank of India Neutral 100-9,317 15,972 17, Canara Bank Neutral ,693 15,441 16, Dena Bank Neutral 39-2,608 3,440 3, Dewan Housing Finance Buy ,897 1,828 2, Equitas Holdings Buy , , Federal Bank Neutral 56-9,613 3,279 3, HDFC Neutral 1, ,301 10,358 11, HDFC Bank Accumulate 1,168 1, ,669 38,606 47, ICICI Bank Neutral ,592 34,279 39, IDBI Bank Neutral 68-14,010 9,625 10, Indian Bank Neutral 141-6,765 6,160 6, LIC Housing Finance Buy ,115 3,179 3, Oriental Bank Neutral 107-3,695 7,643 8, Punjab Natl.Bank Neutral ,461 23,122 26, South Ind.Bank Neutral 20-2,707 1,965 2, St Bk of India Neutral ,909 79,958 86, Union Bank Neutral 127-8,748 12,646 14, Vijaya Bank Neutral 38-3,781 3,536 3, Yes Bank Neutral 1,069-45,011 7,190 9, FMCG Asian Paints Neutral ,001 15,534 17,

12 Stock Watch 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 Britannia Neutral 2,743-32,912 8,481 9, Colgate Neutral ,407 4,136 4, Dabur India Neutral ,008 9,370 10, GlaxoSmith Con* Accumulate 5,878 6,118 24,719 4,519 5, Godrej Consumer Neutral 1,532-52,173 9,003 10, HUL Neutral ,131 33,299 35, ITC Accumulate ,419 36,837 39, Marico Neutral ,074 6,151 6, Nestle* Neutral 6,457-62,252 9,393 10, Tata Global Accumulate ,069 8,635 9, Procter & Gamble Hygiene Buy 6,133 7,369 19,908 2,588 2, IT HCL Tech^ Buy 713 1, ,643 37,061 30, Infosys Accumulate 1,161 1, ,687 62,441 70, TCS Accumulate 2,462 3, , , , Tech Mahindra Buy ,647 26,494 30, Wipro Buy ,011 50,808 56, Media D B Corp Neutral 376-6,909 2,025 2, HT Media Neutral 78-1,804 2,495 2, Jagran Prakashan Buy ,526 2,107 2, Sun TV Network Neutral ,998 2,510 2, Hindustan Media Ventures Neutral 273-2, , Metals & Mining Coal India Buy ,797 76,167 84, Hind. Zinc Neutral ,697 14,641 14, Hindalco Neutral , , , JSW Steel Neutral 1,427-34,501 42,308 45, (10.3) (1.0) NMDC Neutral 92-36,416 8,237 10, SAIL Neutral 43-17,739 45,915 53, Vedanta Neutral ,510 71,445 81, Tata Steel Neutral , , ,

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 Oil & Gas Cairn India Neutral ,123 11,323 12, GAIL Neutral ,936 64,856 70, ONGC Neutral , , , Petronet LNG Neutral ,353 29,691 31, Indian Oil Corp Accumulate , , , Reliance Industries Buy 958 1, , , , Pharmaceuticals Alembic Pharma Neutral ,191 3,274 3, Aurobindo Pharma Accumulate ,720 14,923 17, Aventis* Accumulate 4,221 4,738 9,720 2,049 2, Cadila Healthcare Buy ,744 9,469 11, Cipla Buy ,925 13,979 16, Dr Reddy's Accumulate 3,266 3,476 55,694 15,471 17, Dishman Pharma Neutral 138-2,223 1,733 1, GSK Pharma* Neutral 3,489-29,553 2,870 3, Indoco Remedies Neutral 272-2,508 1,033 1, Ipca labs Buy ,139 3,363 3, Lupin Buy 1,543 1,809 69,578 13,702 15, Sun Pharma Buy ,401 28,163 32, Power Tata Power Neutral 72-19,473 35,923 37, NTPC Neutral ,115 87,271 99, Power Grid Accumulate ,351 20,702 23, Real Estate MLIFE Buy , , Telecom Bharti Airtel Neutral , , , Idea Cellular Neutral ,556 34,282 36, zothers Abbott India Neutral 4,489-9,538 2,715 3, Bajaj Electricals Buy ,240 4,612 5, Finolex Cables Neutral 349-5,334 2,520 2, Goodyear India* Accumulate ,184 1,800 1, Hitachi Neutral 1,315-3,576 1,779 2,

14 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 ) FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E Jyothy Laboratories Neutral 296-5,360 1,620 1, MRF Buy 32,880 45,575 13,945 20,316 14, , , Page Industries Neutral 13,752-15,339 1,929 2, Relaxo Footwears Neutral 495-5,940 1,767 2, Siyaram Silk Mills Buy 1,073 1,347 1,006 1,619 1, Styrolution ABS India* Neutral 607-1,067 1,271 1, TVS Srichakra Buy 2,362 2,932 1,809 2,035 2, HSIL Accumulate ,968 2,123 2, Kirloskar Engines India Ltd Neutral 266-3,841 2,403 2, M M Forgings Buy Banco Products (India) Neutral 144-1,027 1,208 1, Competent Automobiles Neutral ,040 1, Nilkamal Neutral 1,144-1,707 1,871 2, Visaka Industries Buy ,020 1, Transport Corporation of Neutral 307-2,353 2,830 3, India Elecon Engineering Neutral ,359 1, Surya Roshni Buy ,992 3, MT Educare Neutral Radico Khaitan Buy ,218 1,543 1, Garware Wall Ropes Buy Wonderla Holidays Neutral 404-2, Linc Pen & Plastics Accumulate The Byke Hospitality Neutral Interglobe Aviation Neutral 1,020-36,755 17,022 21, Coffee Day Enterprises Ltd Neutral 250-5,151 2,692 2, Navneet Education Neutral 93-2, , Navkar Corporation Buy , UFO Moviez Neutral 527-1, VRL Logistics Neutral 310-2,827 1,725 1,

15 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 zothers Team Lease Serv. Neutral 917-1,567 2,565 3, S H Kelkar & Co. Neutral 214-3, , Quick Heal Neutral 261-1, Narayana Hrudaya Neutral 314-6,419 1,603 1, Manpasand Bever. Neutral 546-2, Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on June 28, 2016

16 Market Outlook 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.