Market Outlook. Market Cues. News & Result Analysis. Investor s Ready Reckoner. Top Picks. Key Upcoming Events. February 10, 2016

Transcription

1 6.( Market Outlook ` Market Cues Indian markets are likely to open weak tracking the SGX Nifty. SGX Nifty was down 70 points. US markets eventually ended in red after a lackluster performance as traders kept a close eye on the price of crude oil, which saw considerable volatility on the day. Traders may also have been looking ahead to remarks by Janet Yellen, who is scheduled to testify before the House Financial Services Committee today. The Energy Information Administration (EIA) is also due to release its weekly oil inventories report today, potentially driving the price of crude oil. The European markets ended in negative territory, extending their losing streak to a seventh session. Concerns about global growth prospects continue to plague the markets. Bank stocks also continued to get hammered due to concerns over troubled loans. Indian shares followed global peers lower on Tuesday as concerns over oil price volatility, slowing global growth and speculation over the Federal Reserve raising rates further in March sent investors fleeing riskier assets. News & Result Analysis Result Review: Dr Reddys Labs, Aurobindo Pharmaceuticals, Punjab National Bank Result Preview: Cipla Detailed analysis on Pg2 Investor s Ready Reckoner Key Domestic & Global Indicators Stock Watch: Latest investment recommendations on 150+ stocks Domestic Indices Chg (Pts) (Close) BSE Sensex (1.1) (266) 24,021 Nifty (1.2) (89) 7,298 Mid Cap (1.9) (197) 10,114 Small Cap (1.3) (141) 10,426 Bankex (1.2) (210) 16,863 Global Indices Chg (Pts) (Close) Dow Jones (0.1) (13) 16,014 Nasdaq (0.3) (15) 4,269 FTSE (1.0) (57) 5,632 Nikkei (5.4) (919) 16,085 Hang Seng ,288 Shanghai Com (0.6) (18) 2,763 Advances / Declines BSE NSE Advances Declines 1,831 1,178 Unchanged Volumes (` Cr) BSE 2,199 NSE 14,857 Refer P6 onwards Top Picks Company Sector Rating CMP (`) Target (`) Upside Amara Raja Batteries Auto & Auto Ancillary Buy 866 1, HCL Tech IT Buy 812 1, Larsen & Toubro Construction Buy 1,114 1, LIC Housing Finance Financials Buy Navkar Corporation Others Buy More Top Picks on Pg5 Key Upcoming Events Date Region Event Description Previous Reading Consensus Expectations Feb 10 India Exports YoY% (% Change) (14.70) -- Feb 10 India Imports YoY% (% Change) (3.90) -- Feb 12 India Industrial Production YoY (% Change) (3.20) -- Feb 12 Euro Zone Euro Zone GDP Net Inflows (` Cr) Net Mtd Ytd FII (39) (663) (10,803) MFs (3) (783) 78,659 Top Gainers Price (`) Chg Lupin 1, Jppower Gppl Sunpharma Srf 1, Top Losers Price (`) Chg Denabank 31 (12.1) Mothersumi 241 (11.1) Justdial 502 (7.9) Pnb 88 (6.9) Star 1,032 (6.9) As on February 09, 2016

2 Result Review Dr Reddys Labs (CMP: `2,960 / TP: `3,933/ Upside: 32.9%) Dr Reddys Labs, posted results below expectations both on top and bottom-line. For 3QFY2016, the company posted sales of `3968cr V/s `4420cr expected and `3843cr in 3QFY2015, a yoy growth of 3.0%. The lower than expected sales performance is on back of the Emerging market ( `639.9cr) which dipped by 28.0% yoy. Russia with sales of `310cr, declined by 21% yoy, on back of deprecation of Rubble. In constant currency the region posted a yoy growth of 5%. Revenue from other CIS countries and Romania (~`90cr) posted a yoy dip of 17%. ROW (`240cr) posted a dip of 38% yoy on back of the calibrated sales of Venezuela. The key regions-usa (`1941.7cr) posted a robust growth of 18% yoy, Europe (`194cr) posted a yoy growth of 14% and India did sales of `581cr, a yoy growth of 34%( aided by the UCB acquired brands). Overall generic segment posted a sales growth of 7% yoy, while PSAI segment posted a sales de-growth of 17%. On operating front, the OPM s have come in at 25.5% V/s 27.1% expected and V/s 23.0% during the last corresponding period, on back of improved sales mix. R&D expenditure, during the quarter came in at 10.3% of sales V/s 11.2% of sales expected. The dip is mainly on back of due to the receipt of company s share of the development costs and other contractual amounts from Merck Serono for biosimilars development programme. Also, the other income during the quarter came in at `12.2cr ( on account of `63.7cr forex losses ) V/s `34.1cr during the last corresponding period along with the 30% dip in tax outgo lead the company to post a net profit of `579cr V/s `746cr expected V/s `574cr in 3QFY2015, a yoy growth of 1.0%. We maintain our buy with a price target of `3,933. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales Mar (` cr) (` cr) (`) (x) (x) (x) (x) FY2016E 16, , FY2017E 19, , Aurobindo Pharmaceuticals (CMP: `743/ TP: `856 / Upside: 15.2%) The company disappointed on the revenue front which came in below expectations growing by 9.2% yoy to `3,432cr. This was against our expectations of `3,800cr. The key markets like USA (`1571cr) posted a yoy growth of 30.8%, Europe (`779cr) posted a de-growth of 9.6%, ROW (`182cr) posted a yoy growth of 36.2% and ARV (`305cr) posted an de-growth of 8.5%. On the operating front, the gross margins came in as expected at 54.7% V/s 49.6% in 3QFY2015, which aided the OPM s to come in at 22.7% V/s 18.7% during the last corresponding period. Thus, the Adj. Net profit of the company rose to `525cr V/s `399cr in 3QFY2015, yoy growth of 31.7%. We maintain our buy rating on the stock with a price target of `856. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales Mar (` cr) (` cr) (`) (x) (x) (x) (x) FY2016E 14, , FY2017E 17, ,

3 Punjab National Bank (CMP: `88 / TP: -/ Upside: -) PNB has come out with a very disappointing set of results for the quarter. Though results were expected to be bad however, the quantum of rise in Gross NPAs has surprised us. The Gross NPAs has gone up by 37.7% QoQ and now stands at 8.47% vs 6.36% in 2QFY16. This 210 bps rise in GNPAs doesn t seem to be the end of the pain as the bank is expected to report similar set of rise in NPA levels during Q4FY16. Net NPAs stood at 5.86 % vs 3.99% a rise of 187 bps QoQ. During the quarter the bank recognised loans worth over `5,000cr from the RBI s Asset Quality Review accounts as NPA and hence the overall rise in NPAs. We don t expect asset quality to stabilise any time soon for the bank. We maintain our NEUTRAL view on the stock. Result Preview Cipla (CMP: `557 / TP: `637/ Upside: 14.4%) For 3QFY2016, the company is expected to post a robust growth. The sales are expected to come in at `3,367cr V/s `2,625cr in 3QFY2015, a yoy growth of 28.3%, mainly lead by exports. On the operating front, the OPM s are expected to come in at 19.9% V/s 15.7% in 3QFY2015. Thus the Adj. net profit is expected to come in at `400cr V/s `328cr in 3QFY2015, registering a yoy growth of 24.9%. We maintain our accumulate view on the stock, with a price target of `637. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales Mar (` cr) (` cr) (`) (x) (x) (x) (x) FY2016E 14, , FY2017E 16, , Quarterly Bloomberg Brokers Consensus Estimate ACC Ltd.Consol - Particulars (` cr) 4QCY15E 4QCY14 y-o-y 3QCY15 q-o-q Net sales 2,861 2, , EBITDA (16.6) EBITDA margin Net profit (58.0) Ambuja Cement Ltd. - Particulars (` cr) 4QCY15E 4QCY14 y-o-y 3QCY15 q-o-q Net sales 2,359 2,378 (0.8) 2, EBITDA (8.9) EBITDA margin Net profit (42.5) Cipla Ltd. Consol - Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 3,334 2, ,361 (0.8) EBITDA (11.5) EBITDA margin Net profit (6.7)

4 TATA Chemical Ltd.Consol - Particulars (` cr) 3QFY16E 3QFY15 y-o-y 2QFY16 q-o-q Net sales 4,888 4, ,948 (1.2) EBITDA (2.3) EBITDA margin Net profit Economic and Political News Centre aims at doubling oil and gas production in North East by 2030 US keen to participate in all 100 Smart City projects India likely to spend $1 trillion on power by 2030: Piyush Goyal Corporate News Mahindra to upgrade software in TUV300 AMT models Tribunal stays CCI fines on IndiGo, SpiceJet Court Rejects Sun Union's Plea Against Transfers

5 Top Picks Large Cap Company Market Cap (` Cr) CMP (`) Target (`) Upside Amara Raja Batteries 14, , Ashok Leyland 25, HCL Tech 1,14, , HDFC Bank 2,59,177 1,026 1, Infosys 2,54,800 1,109 1, Larsen & Toubro 1,03,779 1,114 1, LIC Housing Finance 21, Rationale To outpace battery industry growth due to better technological products leading to market share gains in both the automotive OEM and replacement segments. Earnings to grow strongly given the MHCV cyclical upturn. Focus on exports and LCV's provides additional growth avenue. The stock is trading at attractive valuations and is factoring all the bad news. Strong visibility for a robust 20% earnings trajectory, coupled with high quality of earnings on account of high quality retail business and strategic focus on highly rated corporates. Back on the growth trend, expect a long term growth of 14% to be a US$20bn in FY2020. Well positioned to benefit from such expected gradual recovery in the overall domestic capex cycle, given its presence across various infrastructure segments, its execution capabilities, and its strong balance sheet. LICHF continues to grow its retail loan book at a healthy pace with improvement in asset quality. We expect the company to post a healthy loan book which is likely to reflect in a strong earnings growth. Source: Company, Angel Research Mid Cap Company Market Cap (` Cr) CMP (`) Target (`) Upside Blue Star 3, Garware Wall Ropes Jagran Prakashan 5, Navkar Corporation 2, Radico Khaitan 1, Siyaram Silk Mills 986 1,052 1, Surya Roshni Source: Company, Angel Research Rationale Favourable outlook for the AC industry to augur well for Cooling products business which is out pacing the market growth. EMPPAC division's profitability to improve once operating environment turns around. Change in business focus towards high-margin chronic & lifestyle segments and increasing penetration in Europe and US Economic recovery to have favourable impact on advertising & circulation revenue growth. Further, the acquisition of a radio business (Radio City) would also boost the company's revenue growth. Massive capacity expansion along with rail advantage at ICD as well CFS augurs well for the company Earnings boost on back of stable material prices and favourable pricing environment. Valuation discount to peers provides additional comfort Strong brands and distribution network would boost growth going ahead. Stock currently trades at an inexpensive valuation. Structural shift in the Lighting industry towards LED lighting will drive growth.

6 Key Upcoming Events Result Calendar Date Feb 10, 2016 Feb 11, 2016 Feb 12, 2016 Feb 13, 2016 Company Tata Chemicals, Tata Global, Automotive Axle, Areva, Ambuja Cements, ACC, India Cements, Rural Elec.Corp., IOB, UCO Bank, Bank of Maharashtra, Petronet LNG, Bajaj Electrical, Finolex Cables, Surya Roshni, Cipla, GSK Pharma, Orchid Chemicals, NHPC Tata Motors, Hero Motocorp, Ashok Leyland, BHEL, BGR Energy, J & K Bank, St Bk of India, Bank of India, Union Bank, Indian Bank, Oriental Bank, Coal India, Nalco, ONGC, Indraprasth Gas, Page Industries, GIPCL, Unitech, Coffee Day Enterprises Ltd M&M, FAG Bearings, CEAT, Canara Bank, IDBI Bank, Andhra Bank, Corporation Bank, Nestle, Sun TV Network, NMDC, Bhushan Steel, Monnet Ispat, IOC, BPCL, HPCL, Sun Pharma, Adani Power, Anant Raj Bank of Baroda, Jindal Steel, MM Forging, HDIL, Competent Automobiles Source: Bloomberg, Angel Research Global economic events release calendar Date Time Country Event Description Unit Period Bloomberg Data Last Reported Estimated Feb 10, :00PM UK Industrial Production (YoY) % Change Dec Feb 11, :00PM US Initial Jobless claims Thousands Feb Feb 12, 2016 India Imports YoY% % Change Jan (3.90) -- India Exports YoY% % Change Jan (14.70) -- 5:30PM India Industrial Production YoY % Change Dec (3.20) (0.30) 3:30PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 4Q A :30PM Germany GDP nsa (YoY) % Change 4Q P Feb 15, :00PM India Monthly Wholesale Prices YoY% % Change Jan (0.73) (0.12) China Exports YoY% % Change Jan (1.40) (2.00) Feb 16, :00PM UK CPI (YoY) % Change Jan Feb 17, :00PM US Housing Starts Thousands Jan 1, , :00PM US Building permits Thousands Jan 1, , :00PM UK Jobless claims change % Change Jan (4.30) -- 7:45PM US Industrial Production % Jan (0.36) 0.30 US Producer Price Index (mom) % Change Jan (0.70) -- Feb 18, :00AM China Consumer Price Index (YoY) % Change Jan Feb 19, :00PM US Consumer price index (mom) % Change Jan (0.10) (0.10) 8:30PM Euro Zone Euro-Zone Consumer Confidence Value Feb A (6.30) -- Feb 22, :00PM Germany PMI Services Value Feb P :00PM Germany PMI Manufacturing Value Feb P Feb 23, :30PM US Existing home sales Million Jan :30PM US Consumer Confidence S.A./ 1985=100 Feb Feb 24, :30PM US New home sales Thousands Jan Feb 25, :00PM UK GDP (YoY) % Change 4Q P :30PM Euro Zone Euro-Zone CPI (YoY) % Jan F Feb 26, :00PM US GDP Qoq (Annualised) % Change 4Q S Source: Bloomberg, Angel Research

7 h Macro watch Exhibit 1: Quarterly GDP trends Exhibit 2: IIP trends QFY QFY QFY QFY QFY14 1QFY QFY QFY QFY QFY QFY16 3QFY (2.0) (4.0) 2.8 Jan Feb Mar-15 Apr-15 May Jun-15 Jul Aug Sep Oct-15 (3.2) Nov-15 Source: CSO, Angel Research Source: MOSPI, Angel Research Exhibit 3: Monthly CPI inflation trends Exhibit 4: Manufacturing and services PMI Mfg. PMI Services PMI Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Source: MOSPI, Angel Research Source: Market, Angel Research; Note: Level above 50 indicates expansion Exhibit 5: Exports and imports growth trends Exhibit 6: Key policy rates 0.0 (5.0) (10.0) (15.0) (20.0) (25.0) (30.0) (35.0) Jan-15 Feb-15 Exports yoy growth Mar-15 Apr-15 May-15 Jun-15 Imports yoy growth Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec Mar-15 Mar-15 Apr-15 Repo rate Reverse Repo rate CRR May-15 May-15 Jun-15 Jul-15 Jul-15 Aug-15 Sep-15 Sep-15 Oct-15 Nov-15 Dec-15 Dec-15 Jan-16 Feb-16 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 (2.0) (4.0) (6.0) Brazil (4.5) Russia (4.1) India China South Africa Indonesia Malaysia Thailand UK USA Germany France Japan Source: Bloomberg, Angel Research Exhibit 2: 2015 GDP Growth projection by IMF (%, yoy) across select developing and developed countries (3.8) (2.0) (4.0) (6.0) Brazil (3.0) Russia India China South Africa Indonesia Malaysia Thailand UK USA Germany France Japan Source: IMF, Angel Research Exhibit 3: One year forward P-E ratio across select developing and developed countries (x) Brazil Russia India China South Africa Indonesi a Malaysia Thailand UK USA German y France Japan Source: IMF, Angel Research

9 h Exhibit 4: Relative performance of indices across globe Returns Country Name of index Closing price 1M 3M 1YR Brazil Bovespa 40,592 (4.3) (11.0) (14.9) Russia Micex 1,723 (1.4) (2.4) (1.8) India Nifty 7,298 (3.6) (8.3) (16.3) China Shanghai Composite 2,763 (17.8) (23.0) (16.4) South Africa Top 40 42,975 (0.6) (9.6) (6.3) Mexico Mexbol 42, (6.2) (1.0) Indonesia LQ (7.7) Malaysia KLCI 1, (0.2) (7.8) Thailand SET (10.0) (22.2) USA Dow Jones 16,014 (3.0) (10.4) (10.4) UK FTSE 5,632 (3.7) (8.8) (14.5) Japan Nikkei 16,085 (8.5) (11.9) (5.5) Germany DAX 8,879 (9.8) (18.4) (17.4) France CAC 3,998 (7.8) (18.6) (15.9) 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 162-3,159 2,097 2, United Phosphorus Buy ,748 12,500 14, Auto & Auto Ancillary Ashok Leyland Buy ,143 17,995 21, Bajaj Auto Accumulate 2,378 2,728 68,801 23,695 27, Bharat Forge Buy ,158 7,867 8, Eicher Motors Accumulate 18,176 20,044 49,355 15,556 16, Gabriel India Buy ,205 1,415 1, Hero Motocorp Accumulate 2,580 2,774 51,512 28,561 31, Jamna Auto Industries Buy ,105 1,281 1, L G Balakrishnan & Bros Neutral ,254 1, Mahindra and Mahindra Buy 1,183 1,449 73,450 39,031 44, Maruti Neutral 3, ,459 57,865 68, Minda Industries Buy 847 1,047 1,343 2,523 2, Motherson Sumi Buy ,931 39,343 45, Rane Brake Lining Buy Setco Automotive Neutral Tata Motors Buy , , , TVS Motor Accumulate ,576 11,263 13, Amara Raja Batteries Buy 866 1,040 14,797 4,892 5, Exide Industries Buy ,931 6,950 7, Apollo Tyres Buy ,874 12,146 12, Ceat Buy 906 1,119 3,665 6,041 6, JK Tyres Neutral 87-1,976 7,446 7, Swaraj Engines Accumulate , Subros Neutral ,293 1, Indag Rubber Neutral Capital Goods ACE Neutral BEML Neutral 1,011-4,208 3,277 4, Bharat Electronics Buy 1,209 1,414 29,017 7,737 8,

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 Capital Goods Voltas Buy ,298 5,363 5, BGR Energy Neutral ,615 3, BHEL Neutral ,161 33,722 35, Blue Star Buy ,082 3,548 3, Crompton Greaves Neutral 129-8,063 13,484 14, Greaves Cotton Neutral 127-3,089 1,655 1, Inox Wind Buy ,983 4,980 5, KEC International Neutral 113-2,895 8,791 9, Thermax Neutral 801-9,542 6,413 7, Cement ACC Buy 1,278 1,630 24,002 13,151 14, Ambuja Cements Buy ,634 11,564 12, HeidelbergCement Neutral 70-1,591 1,772 1, India Cements Buy ,507 4,216 4, JK Cement Buy ,151 3,661 4, J K Lakshmi Cement Buy ,177 2,947 3, Mangalam Cements Neutral ,053 1, Orient Cement Buy ,809 1,854 2, Ramco Cements Neutral 374-8,901 4,036 4, Shree Cement^ Neutral 10,274-35,791 7,150 8, UltraTech Cement Buy 2,763 3,282 75,830 25,021 30, Construction ITNL Neutral 75-2,452 7,360 8, KNR Constructions Buy , , Larsen & Toubro Buy 1,114 1, ,779 58,870 65, Gujarat Pipavav Port Neutral 158-7, MBL Infrastructures Buy ,313 2, Nagarjuna Const. Neutral 63-3,511 7,892 8, PNC Infratech Accumulate ,637 1,873 2, Simplex Infra Neutral 264-1,304 5,955 6, Power Mech Projects Neutral ,539 1,

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 ) FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E Construction Sadbhav Engineering Neutral 299-5,120 3,481 4, NBCC Buy 932 1,089 11,187 7,382 9, MEP Infra Neutral ,956 1, SIPL Neutral 83-2, , Financials Allahabad Bank Neutral 51-3,063 8,569 9, Axis Bank Buy ,292 26,473 31, Bank of Baroda Neutral ,572 18,485 21, Bank of India Neutral 96-7,811 15,972 17, Canara Bank Neutral ,347 15,441 16, Dena Bank Neutral 31-2,016 3,440 3, Federal Bank Neutral 45-7,661 3,477 3, HDFC Neutral 1, ,101 10,358 11, HDFC Bank Buy 1,026 1, ,177 38,309 47, ICICI Bank Buy ,659 34,279 39, IDBI Bank Neutral 56-10,574 9,625 10, Indian Bank Neutral 87-4,162 6,160 6, LIC Housing Finance Buy ,431 3,101 3, Oriental Bank Neutral 103-3,100 7,643 8, Punjab Natl.Bank Neutral 88-17,250 23,638 26, South Ind.Bank Neutral 18-2,471 1,965 2, St Bk of India Buy ,638 82,520 93, Union Bank Neutral 129-8,875 12,646 14, Vijaya Bank Neutral 32-2,758 3,536 3, Yes Bank Neutral ,393 7,190 9, FMCG Asian Paints Neutral ,812 16,553 19, Britannia Neutral 2,778-33,327 8,065 9, Colgate Neutral ,066 4,836 5, Dabur India Accumulate ,697 9,370 10, GlaxoSmith Con* Neutral 5,847-24,590 4,919 5,

13 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 Godrej Consumer Neutral 1,241-42,257 10,168 12, HUL Neutral ,866 34,940 38, ITC Buy ,316 41,068 45, Marico Neutral ,790 6,551 7, Nestle* Buy 5,418 6,646 52,242 11,291 12, Tata Global Buy ,621 8,635 9, IT HCL Tech^ Buy 812 1, ,415 42,038 47, Infosys Buy 1,109 1, ,800 61,850 69, TCS Buy 2,281 2, , , , Tech Mahindra Buy ,298 25,566 28, Wipro Buy ,430 50,808 56, Media D B Corp Accumulate ,860 2,241 2, HT Media Neutral 79-1,845 2,495 2, Jagran Prakashan Buy ,218 2,170 2, Sun TV Network Neutral ,694 2,779 3, Hindustan Media Ventures Neutral 275-2, , Metals & Mining Coal India Buy ,302 76,167 84, Hind. Zinc Accumulate ,380 14,641 14, Hindalco Neutral 70-14, , , JSW Steel Neutral 1,003-24,235 42,308 45, (10.3) (1.0) NMDC Neutral 85-33,581 8,237 10, SAIL Neutral 39-16,087 45,915 53, Vedanta Neutral 70-20,679 71,445 81, Tata Steel Neutral , , , Oil & Gas Cairn India Neutral ,445 11,323 12, GAIL Neutral ,219 64,856 70, ONGC Neutral , , , Petronet LNG Neutral ,005 29,691 31, Indian Oil Corp Buy , , ,

14 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 Reliance Industries Buy 957 1, , , , Pharmaceuticals Alembic Pharma Neutral ,132 3,274 3, Aurobindo Pharma Buy ,470 14,923 17, Aventis* Neutral 4,180-9,627 2,082 2, Cadila Healthcare Accumulate ,584 10,224 11, Cipla Accumulate ,705 14,211 16, Dr Reddy's Buy 2,960 3,933 50,473 16,838 19, Dishman Pharma Neutral 341-2,753 1,733 1, GSK Pharma* Neutral 3,228-27,345 2,870 3, Indoco Remedies Neutral 301-2,775 1,033 1, Ipca labs Buy ,253 3,363 3, Lupin Neutral 1,904-85,782 13,092 16, Sun Pharma Accumulate ,584 28,163 32, Power Tata Power Neutral 60-16,147 35,923 37, NTPC Buy ,563 87,064 98, Power Grid Buy ,236 20,702 23, Telecom Bharti Airtel Neutral , , , Idea Cellular Neutral ,814 34,282 36, zothers Abbott India Neutral 4,840-10,284 2,715 3, Bajaj Electricals Buy ,798 4,719 5, Finolex Cables Neutral 224-3,427 2,520 2, Goodyear India* Buy ,126 1,800 1, Hitachi Neutral 1,181-3,210 1,779 2, Jyothy Laboratories Neutral 284-5,145 1,620 1, MRF Buy 33,653 45,575 14,273 20,316 14, , , Page Industries Neutral 11,698-13,047 1,929 2, Relaxo Footwears Neutral 423-5,079 1,767 2, Siyaram Silk Mills Buy 1,052 1, ,636 1, Styrolution ABS India* Buy ,271 1,

15 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 TVS Srichakra Buy 2,485 3,217 1,903 2,035 2, HSIL Accumulate ,946 2,123 2, Kirloskar Engines India Ltd Neutral 220-3,187 2,403 2, M M Forgings Buy Banco Products (India) Neutral ,208 1, Competent Automobiles Neutral ,040 1, Nilkamal Neutral 1,212-1,809 1,871 2, Visaka Industries Buy ,086 1, Transport Corporation of Neutral 230-1,753 2,830 3, India Elecon Engineering Neutral ,359 1, Surya Roshni Buy ,992 3, MT Educare Neutral Radico Khaitan Buy ,424 1,565 1, Garware Wall Ropes Buy Wonderla Holidays Neutral 376-2, Linc Pen & Plastics Neutral The Byke Hospitality Neutral Interglobe Aviation Neutral ,402 17,022 21, Coffee Day Enterprises Ltd Neutral 243-5,011 2,692 2, Navneet Education Neutral 83-1, , Navkar Corporation Buy , Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on February 09, 2016

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