Market Outlook. Market Cues. News & Result Analysis. Investor s Ready Reckoner. Top Picks. Key Upcoming Events. November 4, 2015

Transcription

1 ( Market Outlook Market Cues Indian markets are expected to open positive tracking the SGX Nifty and Asian markets. US market climbed on the day extended the rally that was seen over the course of the previous session. While buying interest faded late in the session as report from the Commerce Department showed factory orders saw further downside in the month of September. The factory orders fell by 1.0 percent in September after tumbling by a revised 2.1 percent in August. European markets ended yesterday s session on mixed note. Due to a lack of global economic data, corporate news was in focus. Financial stocks were under pressure, due to news out of UBS and Standard Chartered. Volkswagen emission scandal has worsened after further allegations from the United States. Meanwhile, energy stocks were among the best performing stocks, due to rising crude oil prices. Indian markets snapped a six-day losing streak on Tuesday as positive global cues and encouraging core sector data helped spur some bargain hunting in beatendown stocks. However, with investors eagerly awaiting the Bihar election results, stocks pared much of their early gains. News & Result Analysis Result Review: Tech Mahindra, HSIL, Finolex Cables, PowerGrid Detailed analysis on Pg2 Investor s Ready Reckoner Key Domestic & Global Indicators Stock Watch: Latest investment recommendations on 150+ stocks Refer P7 onwards Top Picks Company Sector Rating CMP (`) Target (`) Upside Axis Bank Financials Buy HCL Tech IT Buy 876 1, ICICI Bank Financials Buy Ashok Leyland Automobiles Buy Larsen & Toubro Construction Buy 1,372 1, More Top Picks on Pg5 Key Upcoming Events Date Region Event Description Previous Reading Consensus Expectations Nov 4 US ISM Non-Manufacturing PMI Nov 5 GBP Interest Rate Decision 0.5% 0.5% Nov 6 US Unemployment Rate (Oct) 5.1% 5.1% Nov 6 GBP Manufacturing Production (MOM) (Sep) 0.5% 0.4% Domestic Indices Chg (Pts) (Close) BSE Sensex ,591 Nifty ,061 Mid Cap ,014 Small Cap ,336 Bankex (0.1) 21 19,758 Global Indices Chg (Pts) (Close) Dow Jones ,918 Nasdaq ,145 FTSE ,384 Nikkei (2.1) (400) 18,683 Hang Seng ,568 Shanghai Com (0.3) (8) 3,317 Advances / Declines BSE NSE Advances 1, Declines 1, Unchanged Volumes (` Cr) BSE 2,583 NSE 14,993 Net Inflows (` Cr) Net Mtd Ytd FII (7) (7) (14,826) MFs ,514 Top Gainers Price (`) Chg Amtekauto Ifci 3, Eidparry Tvsmotor Atul 1, Top Losers Price (`) Chg Oberoirlty 285 (6.0) Jpinfratec 12 (5.1) Suzlon 23 (5.0) Pmcfin 1 (4.9) Escorts 166 (4.0) As on November 03, 2015

2 Result Review Tech Mahindra (CMP: `557 / TP: `646 /Upside: 15.9%) Tech Mahindra, posted a better than expected results in 2QFY2016.Tech Mahindra posted a 2.2% qoq growth to end the period at US$1,011mn expected V/s US$1,004mn and V/s US$989mn in 1QFY2016. In Constant currency terms (CC), the company posted a 3.0% qoq. In rupee terms, the company posted a 5.1% qoq growth of `6,616cr V/s `6,577cr expected and `6,294cr in 1QFY2016. The growth was primarily driven by the USA, which contributed around 48.9% of sales in 2QFY2016 and 47.7% of sales in 1QFY2016. Amongst the verticals, the Communication and the Technology, media and Entertainment industries drove growth with these industries contributing 52.9% of sales ( 52.7% of sales in 1QFY2016) and 8.2% of sales ( 7.3% of sales in 1QFY2016) respectively. On the EBIDTA front, the margins came in at 16.6% V/s 15.9% expected and 14.9% in 1QFY2016. On EBIT front, the company posted a 13.7% EBIT V/s 13.1% expected and V/s 12.1% in 1QFY2016. The margin expansion was driven by the improved capacity utilization, which moved up from 74% in 1QFY2016 to 77% in 2QFY2016. Excluding the trainee, the utilization inched up to 79% V/s 75% in 1QFY2016. The attrition rate during the quarter was 20% V/s 19% in 1QFY2016. Thus, the Net Profit came in at `786cr V/s `725cr expected and `676cr in 1QFY2016, a qoq growth of 16.2%. During the quarter, the company added 18 clients, with one client added in US$50mn+, 2 in US$10mn+. We currently have buy rating on the stock with a price target of `646. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales March (` cr) (` cr) (`) (x) (x) (x) (x) FY2016E 25, , FY2017E 28, , HSIL Ltd (CMP: `278/ TP: `302/ Upside: 8.5%) HSIL reported a mixed set of numbers for 2QFY2016. The top-line was muted, managing to grow by mere 1.3% on yoy basis to `429cr. This was lower than our estimate of `452cr. The Building Products business managed to grow by 8.9% yoy to `247cr while Packaging Products business proved to be a drag, posting a 7.5% yoy decline to `182cr. The raw material cost declined by 54bp yoy to 30.3% of sales and other expenses declined by 120bp yoy to 39.1% of sales. However, employee cost increased by 178bp yoy to 13.0% of sales and as a result, EBITDA margin remained flat at 17.6%, which is more or less in line with our estimate of 18.0%. The EBIT margin for the Building Products declined by 307bp yoy to 15.4% but the same has increased by 156bp on qoq basis. The packaging products business margin increased by 325bp yoy and 227bp qoq to 10.2%. The company has lowered the debt in the past year by ~`374cr (Partially from the QIP proceeds) and as a result, the interest expense has come down by 51.4% yoy to `9cr, thus adding to the bottom line. Mainly on account of lower interest expense, the bottom line grew by 27.6% yoy to `24 against our estimate of `28cr.

3 At the moment, the Packaging products business has been facing slowdown from the FMCG industry and there is excess capacity in the industry that seems to be hampering the top-line. Although the Building products business has maintained the momentum, the real estate/construction sector in general is facing slowdown. Although the near term outlook remains stable, long term prospects are intact especially for the Building Products segment. At current market price, the stock is trading at 14.7x its FY2017 earnings. We maintain our Accumulate rating on the stock with a target price of `302. We may change our rating post 2QFY2016 result conference call Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales March (` cr) (` cr) (`) (x) (x) (x) (x) FY2015E 2, FY2016E 2, Finolex Cables Ltd. (CMP: `248 /TP: -/ Upside: -) Finolex cables reported numbers that were below our estimates. The top-line declined by 4.9% yoy to `605cr, same was below our estimate of `691cr. The degrowth was on account of lower commodity prices which was passed on resulting in lower realizations. In terms of volume growth, Electrical Cables posted modest growth numbers while that of Communication Cables was more than 20%. The raw material cost declined by 178bp yoy to 72.1% of sales but the same was negated by 59bp yoy increase in employee cost to 4.3% of sales and 131bp yoy increase in other expenses to 11.1% of sales. This resulted in EBITDA margin contracting by 12bp to 12.5%. Other income during the quarter declined by 24.4% yoy to `28cr, but the same was in-line with our estimate of `27cr. As a result, the net profit declined by 17.8% yoy to `65cr against `79cr in the same quarter of the previous year. Currently, we have a Neutral rating on the stock and considering that the numbers have come in below our expectations, we maintain our Neutral stance. We will revisit our rating post management discussion. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales Mar (` cr) (` cr) (`) (x) (x) (x) (x) FY2016E 2, FY2017E 2, Power Grid Corp CMP: `131 / TP: `170 / Upside: 30%) Power Grid 2Q2016 total revenues increased 18% yoy to `4,918cr, 2.8% below our estimate of `5,062cr. Transmission revenues came in 3.5% below our estimate at `4,708cr, increasing 17% yoy (vs. our estimate of 21%). Consultancy revenues once again surprised positively at `99cr as against our estimate of `89cr. Telecom revenues too came ahead of expectations this quarter at `97cr vs. our estimate of `64cr. Transmission expenses as a percentage of transmission revenues was 30bp lower than estimate at 7.7%, while employee expenses was much lower than expected at `239cr as against our expectation of `304cr. This led to a 190bp yoy improvement in EBITDA margin at 87.8% during the quarter as against 85.9% in

4 2QFY2015 and our estimate of 86.3%. Net profit was marginally above our estimate led by higher other income at `1,448cr vs. our estimate of `1,440cr. We still await the capitalisation and capex details from the company. We like PGCIL for the high quality earnings and growth offered by the regulated equity model, huge investments that are required in the transmission sector and the execution track record of the company. We expect PGCIL to report a revenue and EBITDA CAGR of ~17% over FY E led by the strong capex plans and capitalisation rate. We expect the bottom-line to grow at a CAGR of 18% over the same period. At the current market price, the stock trades at a P/BV of 1.6x and 1.4x its FY2016E and FY2017E BV and we reiterate our Buy recommendation 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 20, , FY2017E 23, , Economic and Political News Pharma companies expand focus in OTC segment Price of pulses to ease on harvest, action against hoarders: FM UP to incur ` 14,400 cr on public healthcare Corporate News Hero MotoCorp records highest monthly sales in October Prism Cement's divest stake in insurance JV USL sells French winery Bouvet Ladubay Mallya bought in 2006

5 Top Picks Large Cap Company Market Cap (` Cr) CMP (`) Target (`) Upside Amara Raja Batteries 14, , Ashok Leyland 25, Axis Bank 1,13, HCL Tech 1,23, , HDFC Bank 2,73,022 1,084 1, ICICI Bank 1,62, Infosys 2,62,541 1,143 1, Larsen & Toubro 1,27,705 1,372 1, LIC Housing Finance 24, 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. Earnings to grow strongly given the MHCV cyclical upturn. Focus on exports and LCV's provides additional growth avenue. Healthy pace of branch expansion, backed by distribution network, will be the driving force for the bank s retail business and overall earnings. 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. Due to its robust franchise and capital adequacy position, the bank is well positioned to grow by at least a few percentage points higher than the average industry growth rate from a structural point of view. 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. Mid Cap Company Market Cap (` Cr) CMP (`) Target (`) Upside Inox Wind 8, Ipca labs 9, Jagran Prakashan 4, MT Educare Radico Khaitan 1, Siyaram Silk Mills , Surya Roshni Source: Company, Angel Research Rationale Government thrust on Renewable sector and strong order book would drive future growth. Change in business focus towards high-margin chronic and 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. Strong brand & quality teaching with innovative technologies & higher government educational spending to boost growth 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 Quarterly Bloomberg Brokers Consensus Estimate Ashok Leyland Ltd Particulars (` cr) 2QFY16E 2QFY15 y-o-y 1QFY16 q-o-q Net sales 5,197 3, , EBITDA EBITDA margin Net profit Canara Bank Particulars (` cr) 2QFY16E 2QFY15 y-o-y 1QFY16 q-o-q PAT (3.0) 478 (100.6) IDBI Bank Particulars (` cr) 2QFY16E 2QFY15 y-o-y 1QFY16 q-o-q PAT (71.8) Reliance Infrastructure Ltd - Particulars (` cr) 2QFY16E 2QFY15 y-o-y 1QFY16 q-o-q Net sales 2,493 2, ,579 (99.9) EBITDA (99.2) EBITDA margin Net profit (7.0) 330 (102.1)

7 h Macro watch Exhibit 1: Quarterly GDP trends Exhibit 2: IIP trends (2.0) 3.0 (4.0) (2.7) 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 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 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-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 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-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 (2.6) (2.0) (4.0) (6.0) Brazil Russia (4.6) 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 (2.0) (4.0) (6.0) Brazil (1.0) Russia (3.8) 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

9 h Exhibit 4: Relative performance of indices across globe Returns Country Name of index Closing price 1M 3M 1YR Brazil Bovespa 48, (4.0) (12.0) Russia Micex 1, India Nifty 8, (5.7) (3.3) China Shanghai Composite 3, (9.2) 36.5 South Africa Top 40 48, Mexico Mexbol 45, (0.5) 1.1 Indonesia LQ (6.2) (8.8) Malaysia KLCI 1, (3.4) (8.9) Thailand SET (3.7) (13.5) USA Dow Jones 17, UK FTSE 6, (4.5) (1.1) Japan Nikkei 18, (9.2) 13.8 Germany DAX 10, (4.4) 22.3 France CAC 4, (3.4) 19.5 Source: Bloomberg, Angel Research

10 Stock Watch November 04, 2015 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 206-4,011 2,075 2, United Phosphorus Accumulate ,347 13,698 15, Auto & Auto Ancillary Ashok Leyland Buy ,713 18,763 22, Bajaj Auto Accumulate 2,421 2,672 70,066 24,115 27, Eicher Motors Buy 18,003 22,859 48,865 11,681 15, Hero Motocorp Neutral 2,584-51,594 28,561 31, L G Balakrishnan & Bros Neutral ,254 1, Mahindra and Mahindra Accumulate 1,233 1,357 76,568 37,986 42, Maruti Accumulate 4,481 4, ,347 57,865 68, Minda Industries Accumulate ,567 2, Rane Brake Lining Accumulate Setco Automotive Neutral Tata Motors Accumulate , , , TVS Motor Neutral ,659 11,845 14, Amara Raja Batteries Buy 876 1,040 14,956 4,892 5, Exide Industries Accumulate ,669 6,950 7, Apollo Tyres Accumulate ,386 12,576 12, Ceat Neutral 1,105-4,470 6,041 6, JK Tyres Neutral 99-2,243 7,446 7, Swaraj Engines Neutral 943-1, Subros Neutral ,268 1, Indag Rubber Neutral Capital Goods ACE Neutral BEML Neutral 1,107-4,610 3,277 4, BGR Energy Neutral ,615 3, BHEL Neutral ,111 33,722 35, Blue Star Neutral 372-3,350 3,649 4, Crompton Greaves Buy ,746 13,484 14, Inox Wind Buy ,593 4,980 5,

11 Stock Watch November 04, 2015 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 KEC International Neutral 136-3,503 8,791 9, Thermax Neutral ,184 6,413 7, Cement ACC Accumulate 1,425 1,630 26,758 13,151 14, Ambuja Cements Accumulate ,512 11,564 12, India Cements Buy ,530 4,716 5, JK Cement Buy ,554 4,056 4, J K Lakshmi Cement Accumulate ,425 2,947 3, Mangalam Cements Neutral ,053 1, Orient Cement Buy ,245 1,854 2, Ramco Cements Neutral 370-8,803 4,036 4, Shree Cement^ Neutral 12,721-44,315 7,150 8, UltraTech Cement Accumulate 2,924 3,282 80,232 25,021 30, Construction ITNL Neutral 90-2,967 7,360 8, KNR Constructions Neutral 592-1, , Larsen & Toubro Buy 1,372 1, ,705 64,148 73, Gujarat Pipavav Port Neutral 162-7, MBL Infrastructures Buy ,313 2, Nagarjuna Const. Neutral 78-4,322 7,892 8, PNC Infratech Neutral 527-2,704 1,798 2, Simplex Infra Neutral 323-1,600 6,241 7, Financials Allahabad Bank Neutral 76-4,543 8,332 9, Axis Bank Buy ,031 26,473 31, Bank of Baroda Neutral ,293 19,105 21, Bank of India Neutral ,544 15,972 17, Canara Bank Neutral ,174 15,251 16, Dena Bank Neutral 41-2,323 3,440 3, Federal Bank Neutral 55-9,466 3,477 3, HDFC Neutral 1, ,603 10,358 11, HDFC Bank Buy 1,084 1, ,022 38,309 47,

12 Stock Watch November 04, 2015 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 Financials ICICI Bank Buy ,121 35,168 40, IDBI Bank Neutral 85-13,569 9,625 10, Indian Bank Neutral 129-6,189 6,160 6, LIC Housing Finance Buy ,294 3,101 3, Oriental Bank Neutral 143-4,291 7,643 8, Punjab Natl.Bank Neutral ,576 23,638 26, South Ind.Bank Neutral 20-2,754 1,965 2, St Bk of India Buy ,357 82,520 93, Union Bank Neutral ,896 12,646 14, Vijaya Bank Neutral 36-3,050 3,536 3, Yes Bank Buy ,626 7,228 9, FMCG Asian Paints Neutral ,223 16,553 19, Britannia Neutral 3,177-38,112 8,065 9, Colgate Neutral ,817 4,836 5, Dabur India Neutral ,443 9,370 10, GlaxoSmith Con* Neutral 5,967-25,092 4,919 5, Godrej Consumer Neutral 1,283-43,685 10,168 12, HUL Neutral ,943 34,940 38, ITC Buy ,607 41,068 45, Marico Neutral ,210 6,551 7, Nestle* Accumulate 6,234 6,646 60,109 11,291 12, Tata Global Accumulate ,299 8,635 9, IT HCL Tech^ Buy 876 1, ,114 42,038 47, Infosys Accumulate 1,143 1, ,541 60,250 66, TCS Buy 2,543 3, , , , Tech Mahindra Buy ,600 25,566 28, Wipro Buy ,834 52,414 58, Media D B Corp Accumulate ,859 2,241 2, HT Media Neutral 81-1,896 2,495 2,

13 Stock Watch November 04, 2015 Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM EPS ( ) PER(x) P/BV(x) RoE EV/Sales(x) Media ( ) Price ( ) ( cr ) FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E Jagran Prakashan Buy ,652 2,170 2, Sun TV Network Neutral ,076 2,779 3, Hindustan Media Ventures Neutral 275-2, , Metals & Mining Coal India Buy ,724 77,508 85, Hind. Zinc Accumulate ,654 14,641 14, Hindalco Neutral 82-16, , , JSW Steel Neutral ,645 42,308 45, (10.3) (1.0) NMDC Neutral 95-37,625 8,237 10, SAIL Neutral 51-21,084 45,915 53, Vedanta Neutral 98-29,143 71,445 81, Tata Steel Neutral , , , Oil & Gas Cairn India Neutral ,098 11,323 12, GAIL Neutral ,999 64,856 70, ONGC Neutral , , , Petronet LNG Neutral ,098 29,691 31, Indian Oil Corp Accumulate , , , Reliance Industries Accumulate 966 1, , , , Pharmaceuticals Alembic Pharma Neutral ,716 2,601 3, Aurobindo Pharma Neutral ,100 14,923 17, Aventis* Neutral 4,348-10,013 2,082 2, Cadila Healthcare Neutral ,258 10,224 11, Cipla Neutral ,234 14,359 16, Dr Reddy's Neutral 4,325-73,756 18,213 21, Dishman Pharma Neutral 410-3,312 1,716 1, GSK Pharma* Neutral 3,231-27,366 2,870 3, Indoco Remedies Neutral 324-2,985 1,088 1, Ipca labs Buy ,530 3,363 3, Lupin Neutral 1,874-84,346 14,864 17, Sun Pharma Accumulate ,951 28,163 32,

14 Stock Watch November 04, 2015 Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM EPS ( ) PER(x) P/BV(x) RoE EV/Sales(x) Power ( ) Price ( ) ( cr ) FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E Tata Power Neutral 69-18,635 35,923 37, NTPC Buy ,850 87,064 98, Power Grid Buy ,769 20,702 23, Telecom Bharti Airtel Neutral , , , Idea Cellular Neutral ,125 34,282 36, zothers Abbott India Neutral 5,429-11,536 2,715 3, Bajaj Electricals Buy ,525 4,719 5, Finolex Cables Neutral 249-3,814 2,728 3, Goodyear India* Accumulate ,338 1,953 1, Hitachi Neutral 1,339-3,641 1,779 2, Jyothy Laboratories Neutral 304-5,507 1,620 1, MRF Accumulate 39,710 45,575 16,842 20,316 14, , , Page Industries Neutral 13,822-15,417 1,929 2, Relaxo Footwears Neutral 524-6,285 1,767 2, Siyaram Silk Mills Buy 916 1, ,636 1, Styrolution ABS India* Neutral 800-1,407 1,271 1, Tree House Buy , TVS Srichakra Accumulate 2,833 3,210 2,169 2,127 2, HSIL Accumulate ,011 2,182 2, Kirloskar Engines India Ltd Neutral 263-3,798 2,634 3, M M Forgings Buy Banco Products (India) Neutral ,208 1, Competent Automobiles Neutral ,007 1, Nilkamal Neutral 1,172-1,749 1,948 2, Visaka Industries Buy ,158 1, Transport Corporation of Neutral 279-2,119 2,830 3, India Elecon Engineering Neutral ,452 1, Surya Roshni Buy ,992 3, MT Educare Buy

15 Stock Watch November 04, 2015 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 Radico Khaitan Accumulate ,448 1,565 1, Garware Wall Ropes Accumulate Wonderla Holidays Neutral 329-1, Linc Pen & Plastics Accumulate The Byke Hospitality Buy Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on November 03, 2015

16 November 04, 2015 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.