Market Cues Indian markets are likely to open flat tracking global indices and SGX Nifty. The U.S. Indices closed slightly lower on Tuesday. Tech giant Apple slumped by 2.5% which weighed tech heavy NASDAQ and this was more than gain in retail sector stocks. Volumes were low, given that many traders are likely to remain on vacation until after the New Year s holiday. The Dow edged down 0.01% to close at 24,746, the NASDAQ fell 0.3% to finish at 6,936 and the S&P 500 dipped 0.1% to end at 2,681. The major European markets remained closed on the day in celebration of Boxing Day. On Domestic Front, Indices have begun trading upward and the Nifty 50 post fresh record high. However market turned subdued and remained in negative territory most of the session. In last few hours indices turned positive and closed with approx 0.35% higher. There were no big triggers as major European markets remained closed on the day in celebration of Boxing Day. The Sensex jumped 0.21% to close at 34,011, The Nifty 50 ended with a gain of 0.37% to finish at 10,532. News Analysis Canara Bank to raise up to `3,500cr through QIP 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 805 867 7.7 Dewan Housing Finance Financials Buy 595 712 19.7 Asian Granito Other Accumulate 544 582 7.0 Navkar Corporation Other Buy 190 265 39.8 KEI Industries Capital Goods Buy 360 436 21.0 More Top Picks on Pg4 Key Upcoming Events Date Region Event Description Previous Reading Consensus Expectations Dec27 US Consumer Confidence 129.50 128.00 Dec28 US Initial Jobless claims 245.00 240.00 Dec31 Germany PMI Manufacturing 63.30 63.30 Jan02 China PMI Manufacturing 51.80 51.60 Jan02 UK PMI Manufacturing 58.20 57.90 More Events on Pg7 Domestic Indices Chg (Pts) (Close) BSE Sensex 0.2 70 34,011 Nifty 0.4 39 10,532 Mid Cap 0.8 133 17,707 Small Cap 0.6 121 19,112 Bankex 0.1 31 29,012 Global Indices Chg (Pts) (Close) Dow Jones (0.0) (8) 24,746 Nasdaq (0.3) (24) 6,936 FTSE (0.1) (11) 7,593 Nikkei 0.1 17 22,909 Hang Seng 0.2 52 29,630 Shanghai Com (0.0) (1) 3,306 Advances / Declines BSE NSE Advances 1,702 1,045 Declines 1,107 750 Unchanged 187 65 Volumes (` Cr) BSE 4,332 NSE 29,809 Net Inflows (` Cr) Net Mtd Ytd FII (1,136) (7,833) 49,799 *MFs 1,012 6,114 1,16,352 Top Gainers Price (`) Chg Rcom 21 30.8 Tifhl 675 8.9 Jetairways 823 8.7 Vakrangee 428 7.6 Jpassociat 20 7.3 Top Losers Price (`) Chg Religare 72 (4.8) Den 106 (3.5) Adanitrans 228 (3.4) Syndibank 82 (3.1) Kec 368 (2.7) As on December 26 2017
News Analysis Canara Bank to raise up to `3,500cr through QIP CET1/CAR ratio stood at 8.68/12.45% as on Q2FY18, according to nors it should be at 6.75%/10.25%. Total loan book growth grew 3% q-o-q & 10% y-o-y, which will consume capital and recovery in economy, would increase credit demand. Hence this capital raising helps Canara Bank to improve advance growth. "The board of bank at its meeting held on December 26, 2017 has decided to raise additional equity share capital amounting up to `90cr through qualified institutional placement (QIP) route, by issuing up to 9cr equity shares of a face value of `10 each with a premium to be decided as per the applicable guidelines/regulations for an aggregate amount not exceeding `3,500cr inclusive of such premium," it said in a regulatory filing. Economic and Political News Budget worries: GST collections fall to lowest in Nov at `80,808 cr Regulators need to look at the flaws beneath crypto-currencies Take urgent remedial steps to contain NPAs: Parliamentary panel to govt Corporate News Jindal Steel completed 250-tonne basic oxygen furnace at its Odisha plant. IDBI Bank to terminate rating engagement with Moody s for MTN program. NBCC to sell 25.1 lakh shares through an offer for sale to employees. Essar Oilfields commenced drilling contract with Mercator Petroleum.
Top Picks HHHHH Company Market Cap (` Cr) CMP (`) Target (`) Upside Alkem Laboratories 26,123 2,185 2,341 7.1 Asian Granito 1,636 544 582 7.0 Blue Star 7,715 805 867 7.7 Dewan Housing Finance 18,661 595 712 19.7 Karur Vysya Bank 8,753 121 180 48.4 KEI Industries 2,824 360 436 21.0 Music Broadcast 2,147 376 434 15.3 Navkar Corporation 2,853 190 265 39.8 Siyaram Silk Mills 3,603 769 813 5.8 TV Today Network 2,648 444 500 12.6 Maruti Suzuki 2,92,137 9,671 10,619 9.8 GIC Housing 2,515 467 655 40.3 Century Plyboards India 7,506 338 400 18.4 LT Foods 2,246 84 96 14.0 Ruchira Papers 443 198 244 23.5 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 We expect CPIL to report net Revenue/PAT CAGR of ~17%/16% over FY2017-20E mainly due to healthy growth in plywood & lamination business, forayed into MDF & Particle boards on back of strong brand & distribution network. We expect sales/pat to grow at 13.5%/20% over next two years on the back of strong distribution network & addition of new products in portfolio. We expect sales/pat to grow at 13%/16% over next two years on the back of strong healthy demand in writing & printing paper and Kraft paper. Further, China had banned making paper from waste pulp which would benefit Indian paper companies. Source: Company, Angel Research
Key Upcoming Events Global economic events release calendar Bloomberg Data Date Time Country Event Description Unit Period Last Reported Estimated Dec 27, 2017 7:00 PM US Initial Jobless claims Thousands Dec 23 245.00 Dec 28, 2017 8:30 PM US Consumer Confidence S.A./ 1985=100 Dec 129.50 128.00 Dec 31, 2017 6:30 AM China PMI Manufacturing Value Dec 51.80 51.70 Jan 02, 2018 2:25 PM Germany Unemployment change (000's) Thousands Dec (18.00) (12.00) 2:25 PM Germany PMI Manufacturing Value Dec F 63.30 63.30 Jan 03, 2018 3:00 PM UK PMI Manufacturing Value Dec 58.20 57.80 Jan 04, 2018 2:25 PM Germany PMI Services Value Dec F 55.80 55.80 Jan 05, 2018 7:00 PM US Change in Nonfarm payrolls Thousands Dec 228.00 185.00 7:00 PM US Unnemployment rate % Dec 4.10 4.00 Jan 08, 2018 3:30 PM Euro Zone Euro-Zone Consumer Confidence Value Dec F 0.50 Jan 10, 2018 3:00 PM UK Industrial Production (YoY) % Change Nov 3.60 India Imports YoY% % Change Dec 19.60 India Exports YoY% % Change Dec 30.60 Jan 11, 2018 US Producer Price Index (mom) % Change Dec 1.40 Jan 12, 2018 China Exports YoY% % Change Dec 12.30 12:00 PM India Monthly Wholesale Prices YoY% % Change Dec 3.93 Jan 15, 2018 7:00 PM US Consumer price index (mom) % Change Dec 0.40 Jan 16, 2018 3:00 PM UK CPI (YoY) % Change Dec 3.10 Jan 17, 2018 3:30 PM Euro Zone Euro-Zone CPI (YoY) % Dec F 1.50 7:45 PM US Industrial Production % Dec 0.20 Jan 18, 2018 7:00 PM US Housing Starts Thousands Dec 1,297.00 7:00 PM US Building permits Thousands Dec 1,298.00 Jan 24, 2018 8:30 PM US Existing home sales Million Dec 5.81 3:00 PM UK Jobless claims change % Change Dec 5.90 Source: Bloomberg, Angel Research
Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-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 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-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 Oct-17 Nov-17 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Macro watch Exhibit 1: Quarterly GDP trends Exhibit 2: IIP trends 10.0 9.0 8.0 7.0 6.0 5.0 6.1 7.3 7.6 8.0 7.2 9.1 7.9 7.5 7.0 6.1 5.7 6.3 5.0 4.0 3.0 2.0 1.0 2.4 3.5 1.2 4.4 3.2 2.9 1.0 4.5 4.1 2.2 4.0 3.0 - (1.0) (0.3) Source: CSO, Angel Research Source: MOSPI, Angel Research Exhibit 3: Monthly CPI inflation trends Exhibit 4: Manufacturing and services PMI 6.0 5.0 4.0 3.0 2.0 3.4 3.2 3.7 3.9 3.0 2.2 1.5 2.4 3.3 3.3 3.6 4.9 56.0 54.0 52.0 50.0 48.0 46.0 44.0 Mfg. PMI Services PMI 1.0 42.0-40.0 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 50.0 6.00 40.0 5.50 30.0 5.00 20.0 4.50 10.0 4.00 0.0 3.50 (10.0) 3.00 Source: Bloomberg, Angel Research Source: RBI, Angel Research
Brazil Russia India China South Africa Indonesia Malaysia Thailand UK USA Germany France Japan 13.0 4.5 19.9 13.3 16.3 18.9 16.2 17.0 15.0 18.6 13.3 14.7 15.6 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 8.0 7.0 6.0 5.0 4.0 2.5 5.3 6.9 1.1 5.0 5.8 3.7 3.0 2.0 1.0-0.3 1.5 2.2 0.8 1.8 1.4 Source: Bloomberg, Angel Research Exhibit 2: 2017 GDP Growth projection by IMF (%, yoy) across select developing and developed countries 8.0 7.0 6.7 6.8 6.0 5.2 5.4 5.0 4.0 3.7 3.0 1.8 2.2 2.0 2.0 1.7 0.7 1.6 1.5 1.0 0.7 - Source: IMF, Angel Research Exhibit 3: One year forward P-E ratio across select developing and developed countries (x) 25.0 20.0 15.0 10.0 5.0 - Source: IMF, Angel Research
Exhibit 4: Relative performance of indices across globe Returns Country Name of index Closing price 1M 3M 1YR Brazil Bovespa 75,708 1.6 (0.4) 31.5 Russia Micex 2,097 (3.0) 1.3 (3.9) India Nifty 10,532 1.8 5.7 32.0 China Shanghai Composite 3,306 (0.5) (1.6) 6.0 South Africa Top 40 52,064 (4.5) 5.0 19.5 Mexico Mexbol 48,451 0.5 (4.1) 7.0 Indonesia LQ45 1,054 4.1 7.9 20.1 Malaysia KLCI 1,760 2.1 (0.6) 7.5 Thailand SET 50 1,136 4.0 5.9 20.0 USA Dow Jones 24,746 5.2 11.0 24.1 UK FTSE 7,593 2.3 4.0 6.8 Japan Nikkei 22,893 1.5 12.8 17.4 Germany DAX 13,073 0.4 3.8 13.9 France CAC 5,365 0.2 1.9 9.9 Source: Bloomberg, Angel Research p68in4
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 Sell 258 209 5,010 1,873 2,099 15.0 15.0 9.5 10.5 27.1 24.5 4.1 3.7 15.8 16.0 2.6 2.3 United Phosphorus Accumulate 735 820 37,367 18,922 21,949 18.0 18.5 36.2 45.6 20.3 16.1 4.3 3.5 22.7 23.8 2.1 1.8 Auto & Auto Ancillary Ashok Leyland Accumulate 119 127 34,950 23,339 27,240 10.1 10.8 4.7 6.2 25.7 19.2 5.1 4.5 20.0 23.6 1.5 1.2 Bajaj Auto Neutral 3,363-97,311 23,936 27,955 19.5 20.1 142.7 167.3 23.6 20.1 5.1 4.6 21.8 22.8 3.7 3.1 Bharat Forge Buy 728 875 33,902 7,637 8,755 21.7 23.2 36.1 47.3 20.2 15.4 3.6 3.1 18.5 20.8 4.3 3.7 Eicher Motors Neutral 30,251-82,394 19,043 22,837 19.5 19.9 835.4 1,019.0 36.2 29.7 13.5 10.4 40.9 37.8 4.2 3.4 Gabriel India Neutral 192-2,752 1,782 2,033 9.7 10.2 7.1 8.9 27.0 21.7 5.5 4.6 21.0 22.2 1.5 1.3 Hero Motocorp Accumulate 3,805 4,129 75,982 32,239 36,878 16.0 15.6 184.4 206.5 20.6 18.4 6.5 5.7 31.3 30.7 2.1 1.8 Jamna Auto Industries Neutral 83-3,303 1,441 1,662 14.4 14.8 13.9 17.6 6.0 4.7 1.6 1.3 30.0 31.0 2.3 1.9 Mahindra and Mahindra Neutral 741-92,158 46,971 53,816 13.6 14.0 67.7 79.8 11.0 9.3 1.6 1.4 15.0 15.9 1.8 1.6 Maruti Accumulate 9,671 10,619 292,137 79,470 95,208 15.9 17.2 281.7 363.8 34.3 26.6 7.5 6.1 21.7 22.8 3.3 2.7 Minda Industries Neutral 1,288-11,129 4,328 5,084 11.0 11.9 27.3 36.4 47.3 35.4 10.0 7.8 23.1 25.6 2.7 2.3 Motherson Sumi Neutral 375-78,965 55,937 64,445 10.8 11.4 16.9 21.1 22.2 17.8 5.0 5.1 25.2 25.4 1.5 1.2 Tata Motors Neutral 424-122,308 303,167 343,649 11.8 13.8 33.1 54.7 12.8 7.7 2.1 1.7 16.9 23.0 0.5 0.4 TVS Motor Neutral 770-36,579 13,992 16,216 9.0 9.4 17.1 20.3 45.2 37.9 12.0 9.3 29.7 27.7 2.6 2.2 Amara Raja Batteries Neutral 837-14,296 6,140 7,122 14.3 15.6 29.3 39.0 28.6 21.5 4.9 4.1 17.1 19.0 2.3 2.0 Exide Industries Neutral 221-18,760 8,689 9,854 15.1 15.2 9.7 11.0 22.9 20.1 4.1 3.6 15.7 16.1 1.9 1.6 Apollo Tyres Neutral 267-15,279 15,739 17,326 13.3 14.6 20.4 26.7 13.1 10.0 1.6 1.4 20.4 26.7 1.2 1.1 Ceat Neutral 2,003-8,104 6,661 7,717 11.1 14.2 116.2 178.2 17.3 11.2 3.0 2.5 15.2 21.3 1.3 1.1 JK Tyres Neutral 147-3,334 8,318 9,239 16.2 16.4 21.0 27.5 7.0 5.4 1.4 1.1 19.1 20.4 0.8 0.7 Swaraj Engines Neutral 2,034-2,527 788 889 16.4 16.5 71.6 81.0 28.4 25.1 8.2 7.6 29.6 31.0 2.9 2.5 Subros Neutral 300-1,800 1,855 2,135 11.6 11.8 10.3 14.7 29.3 20.5 4.5 3.8 15.8 19.1 1.2 1.0 Capital Goods BEML Neutral 1,607-6,690 4,286 5,194 7.1 8.2 42.9 58.1 37.5 27.7 3.1 2.8 7.6 8.7 1.6 1.3 Bharat Electronics Neutral 187-45,835 10,258 12,470 19.6 19.5 7.3 8.6 25.6 21.7 0.5 0.4 20.4 21.9 4.0 3.2 Voltas Neutral 654-21,645 6,778 8,004 9.6 11.0 17.1 22.4 38.3 29.2 9.1 8.0 17.7 19.8 2.9 2.4 BHEL Neutral 93-34,162 33,200 39,167 6.8 9.5 6.2 11.2 15.0 8.3 0.7 0.7 4.6 8.0 0.6 0.5 Blue Star Accumulate 805 867 7,716 5,220 6,207 6.3 6.6 16.8 22.3 47.9 36.1 9.5 8.4 19.9 23.3 1.4 1.2 CG Power and Industrial Neutral 91-5,691 6,555 7,292 7.5 7.5-0.8 9,080.0 113.5 1.4 1.4 0.1 1.2 1.0 0.9 Solutions Greaves Cotton Neutral 134-3,269 1,778 1,993 14.7 15.1 8.1 9.1 16.5 14.7 3.7 3.5 21.8 23.6 1.6 1.4
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 Neutral 368-9,466 9,779 11,113 9.4 9.8 14.2 18.2 25.9 20.2 5.0 4.1 21.1 22.1 1.2 1.1 KEI Industries Buy 360 436 2,824 3,001 3,391 10.0 10.0 13.0 16.1 27.7 22.4 5.0 4.2 18.2 18.7 1.1 1.0 Thermax Neutral 1,228-14,637 4,125 4,747 10.3 10.8 26.7 31.5 46.0 39.0 5.2 4.7 11.2 12.0 3.3 2.9 VATech Wabag Accumulate 618 681 3,379 3,867 4,126 9.6 10.0 34.9 39.8 17.7 15.5 2.9 2.5 17.7 17.5 0.9 0.8 Cement ACC Neutral 1,739-32,650 12,255 13,350 13.5 14.3 58.0 66.2 30.0 26.3 3.6 3.3 11.5 12.2 2.6 2.4 Ambuja Cements Neutral 272-54,039 10,250 11,450 17.5 19.0 7.2 8.3 37.8 32.8 2.7 2.6 7.0 7.8 5.1 4.5 India Cements Neutral 185-5,696 6,135 6,750 14.8 15.2 8.5 11.5 21.8 16.1 1.1 1.0 4.8 6.2 1.3 1.1 JK Cement Neutral 1,082-7,561 4,150 4,775 19.2 20.0 49.0 63.5 22.1 17.0 3.5 3.0 17.0 18.5 2.3 1.9 J K Lakshmi Cement Neutral 439-5,166 3,422 3,757 15.5 17.0 13.5 23.2 32.5 18.9 3.4 2.9 10.8 15.5 1.9 1.7 Orient Cement Neutral 169-3,457 2,215 3,233 16.8 17.0 5.9 6.9 28.6 24.5 2.2 2.0 10.8 10.1 2.6 1.7 Prism Cement Accumulate 116 131 5,821 5,155 5,616 7.0 7.0 2.0 3.0 57.8 38.6 5.3 4.6 10.0 13.8 1.4 1.3 UltraTech Cement Neutral 4,322-118,672 28,250 35,150 20.2 23.5 77.5 122.2 55.8 35.4 4.7 4.3 9.6 14.8 4.7 3.7 Construction KNR Constructions Neutral 341-4,801 1,846 2,203 14.5 14.5 12.1 13.7 28.2 25.0 1.6 1.3 17.5 16.7 2.7 2.2 Larsen & Toubro Neutral 1,270-177,875 95,787 109,476 10.2 11.6 44.5 50.8 28.6 25.0 3.6 3.3 12.9 13.1 2.4 2.1 Gujarat Pipavav Port Neutral 136-6,587 739 842 61.6 62.7 5.1 6.2 26.7 22.2 3.3 3.3 12.7 14.9 8.4 7.2 PNC Infratech Neutral 217-5,576 2,040 2,935 13.0 13.0 6.4 9.0 34.0 24.2 0.9 0.8 9.7 12.2 2.7 2.0 Simplex Infra Neutral 579-2,864 6,012 6,619 11.6 11.7 21.1 31.0 27.5 18.7 1.9 1.8 6.5 8.6 1.0 0.9 Sadbhav Engineering Neutral 427-7,325 3,823 4,426 10.7 10.8 10.3 11.8 41.5 36.2 5.0 4.4 10.1 10.5 2.2 1.9 NBCC Neutral 252-22,649 9,099 12,706 6.4 6.4 7.3 9.6 34.6 26.3 1.5 1.2 27.5 30.5 2.3 1.7 MEP Infra Neutral 98-1,594 2,403 2,910 18.3 16.8 2.4 6.1 41.7 16.1 15.8 10.7 35.2 55.8 1.8 1.5 SIPL Neutral 151-5,312 2,060 2,390 46.8 47.7 (5.8) (3.1) 5.7 6.4 (14.2) (2.3) 7.3 6.8 Engineers India Neutral 203-13,653 1,795 2,611 21.1 22.4 5.9 8.1 34.3 25.0 2.5 2.4 12.9 16.1 6.0 4.0 Financials Axis Bank Neutral 554-132,964 32,558 35,843 3.5 3.2 27.8 41.0 19.9 13.5 2.2 1.9 11.4 14.9 - - Bank of Baroda Neutral 167-38,387 22,533 26,079 2.4 2.4 12.0 20.9 13.9 8.0 0.9 0.9 6.6 11.0 - - Canara Bank Neutral 375-22,374 17,925 20,235 2.0 2.1 18.5 36.5 20.3 10.3 0.8 0.7 3.4 6.2 - - Can Fin Homes Neutral 501-6,665 586 741 3.5 3.5 107.8 141.0 4.6 3.6 1.0 0.8 24.1 25.6 - - Cholamandalam Inv. & Neutral Fin. Co. 1,289-20,146 2,826 3,307 6.3 6.3 53.7 64.6 24.0 20.0 4.1 3.5 18.3 18.9 - - Dewan Housing Finance Buy 595 712 18,661 2,676 3,383 2.4 2.7 37.4 49.7 15.9 12.0 2.1 1.8 13.8 16.2 - - Equitas Holdings Buy 142 235 4,840 1,125 1,380 9.6 9.8 1.5 6.0 95.0 23.7 2.2 2.0 2.4 8.2 - -
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 Federal Bank Accumulate 110 125 21,530 4,896 5,930 2.8 3.1 5.4 7.6 20.4 14.5 1.7 1.6 8.5 11.0 - - GIC Housing Buy 467 655 2,515 376 477 3.6 3.7 33.0 40.0 14.2 11.7 2.5 2.1 20.0 23.0 - - HDFC Bank Neutral 1,866-482,855 55,236 63,253 4.5 4.4 68.9 82.4 27.1 22.6 4.7 3.9 18.7 18.5 - - ICICI Bank Neutral 318-203,891 42,361 51,378 3.6 3.9 18.4 25.7 17.3 12.3 1.9 1.8 11.3 15.0 - - Karur Vysya Bank Buy 121 180 8,753 3,289 3,630 3.7 3.9 10.8 14.1 11.2 8.6 1.3 1.2 12.5 14.7 - - LIC Housing Finance Accumulate 570 630 28,753 4,895 6,332 3.4 3.7 50.7 66.8 11.2 8.5 2.2 1.9 21.7 23.8 - - Punjab Natl.Bank Neutral 174-42,266 23,708 25,758 2.1 2.1 5.9 16.4 29.7 10.6 0.9 0.8 3.0 8.3 - - RBL Bank Neutral 516-21,522 2,309 2,888 2.6 2.5 16.4 19.1 31.6 27.1 4.0 3.5 13.3 13.8 - - Repco Home Finance Buy 679 825 4,250 496 597 4.4 4.2 38.5 48.7 17.7 13.9 3.2 2.6 19.6 20.6 - - South Ind.Bank Neutral 32-5,706 3,195 3,567 3.0 3.1 3.0 3.8 10.5 8.3 1.0 0.9 10.5 11.9 - - St Bk of India Neutral 317-273,507 105,827 121,056 2.4 2.5 16.1 25.6 19.7 12.4 1.5 1.4 6.6 9.9 - - Union Bank Neutral 148-12,665 14,650 16,225 2.3 2.3 23.1 32.5 6.4 4.6 0.5 0.4 7.1 9.2 - - Yes Bank Neutral 315-72,513 11,088 13,138 3.0 2.9 84.0 99.3 3.8 3.2 0.6 0.5 16.3 16.8 - - FMCG Akzo Nobel India Neutral 1,785-8,561 3,164 3,607 13.8 13.7 58.6 67.9 30.5 26.3 7.5 6.6 24.5 25.1 2.6 2.2 Asian Paints Neutral 1,150-110,274 17,603 20,615 18.6 18.6 2,128.9 2,543.3 0.5 0.5 11.4 9.6 28.0 28.9 6.1 5.1 Britannia Neutral 4,734-56,838 9,690 11,278 14.8 15.4 84.0 101.0 56.4 46.9 20.5 16.3 40.6 39.0 5.8 5.0 Colgate Neutral 1,082-29,423 4,420 5,074 24.9 25.3 28.6 32.8 37.8 33.0 14.9 12.1 43.8 40.5 6.4 5.5 Dabur India Neutral 353-62,208 8,346 9,344 19.6 19.9 7.8 9.0 45.3 39.2 9.1 8.3 25.2 24.8 7.1 6.2 GlaxoSmith Con* Neutral 6,460-27,167 5,072 5,760 18.2 18.4 176.3 199.2 36.6 32.4 7.8 7.0 21.2 21.7 4.7 4.1 Godrej Consumer Neutral 978-66,648 10,171 11,682 20.8 21.5 21.7 27.1 45.1 36.1 10.1 8.7 22.3 23.4 6.7 5.8 HUL Neutral 1,348-291,761 37,077 41,508 20.3 21.8 5,189.9 6,318.5 0.3 0.2 41.1 35.1 74.8 82.0 7.7 6.9 ITC Neutral 264-321,769 44,588 49,853 37.0 37.3 9.6 11.0 27.5 24.0 6.8 6.4 25.1 27.3 6.7 6.0 Marico Neutral 318-41,059 6,788 7,766 18.5 19.2 7.1 8.5 44.8 37.4 15.7 13.4 36.9 38.0 5.9 5.1 Nestle* Neutral 7,828-75,470 10,083 11,182 20.0 20.9 119.7 141.3 65.4 55.4 230.5 210.6 36.7 39.8 7.2 6.4 Tata Global Neutral 306-19,309 7,121 7,641 11.9 12.3 6.9 8.0 44.3 38.2 3.0 2.8 6.8 7.2 2.5 2.3 Procter & Gamble Hygiene Neutral 9,428-30,604 3,034 3,579 27.1 27.7 167.7 198.8 56.2 47.4 15.1 13.0 28.8 29.5 9.5 8.0 IT HCL Tech^ Accumulate 888 1,014 126,667 50,009 54,608 22.1 22.1 62.8 67.6 14.1 13.1 3.2 2.7 22.4 20.6 2.2 1.9 Infosys Accumulate 1,034 1,120 237,589 70,333 75,960 26.0 26.0 61.7 65.9 16.8 15.7 3.2 2.9 18.9 18.7 2.8 2.5 TCS Reduce 2,643 2,442 505,908 123,384 134,488 26.1 26.1 133.2 143.7 19.8 18.4 5.5 5.1 27.6 27.8 3.8 3.4
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 Tech Mahindra Accumulate 493 526 48,185 30,545 32,988 15.0 15.0 35.2 37.6 14.0 13.1 2.4 2.2 16.8 16.2 1.4 1.2 Wipro Neutral 303-147,582 54,164 56,544 22.3 22.3 18.8 19.5 16.1 15.6 2.6 2.2 15.0 13.6 2.0 1.7 Media D B Corp Neutral 345-6,343 2,404 2,625 30.5 31.5 23.7 26.9 14.6 12.8 3.4 2.9 23.5 22.8 2.5 2.3 HT Media Neutral 97-2,259 2,589 2,830 15.1 15.4 8.3 10.9 11.7 8.9 0.9 0.9 8.4 10.4 0.4 0.3 Jagran Prakashan Buy 178 225 5,548 2,541 2,835 28.5 28.7 12.7 14.1 14.0 12.6 2.9 2.5 21.3 21.4 2.0 1.8 Sun TV Network Neutral 999-39,369 3,238 3,789 51.9 55.1 30.9 38.0 32.3 26.3 9.2 8.1 30.0 31.0 11.7 9.9 Hindustan Media Ventures Neutral 251-1,840 1,002 1,074 23.3 23.5 29.2 33.8 8.6 7.4 1.3 1.1 15.6 15.4 0.8 0.6 TV Today Network Accumulate 444 500 2,648 667 727 27.7 27.7 18.6 20.1 23.9 22.1 3.7 3.8 15.6 17.3 3.5 3.3 Music Broadcast Limited Buy 376 434 2,147 271 317 91.0 109.0 6.0 10.0 62.7 37.6 3.9 3.6 6.5 9.3 7.5 6.2 Metals & Mining Coal India Neutral 264-163,658 82,301 91,235 17.0 18.0 17.1 20.5 15.4 12.9 2.9 2.7 45.0 55.0 1.7 1.5 Hind. Zinc Neutral 306-129,485 22,108 24,555 57.0 58.0 22.1 26.3 13.9 11.7 4.5 3.6 32.0 35.0 4.9 4.1 Hindalco Neutral 268-60,185 102,350 105,355 13.5 14.5 21.5 24.5 12.5 10.9 1.7 1.5 15.0 15.2 1.2 1.1 JSW Steel Neutral 267-64,649 64,500 68,245 21.1 21.5 20.1 21.2 13.3 12.6 2.4 2.1 - - 1.7 1.7 NMDC Neutral 140-44,342 10,209 11,450 47.0 48.0 11.1 12.1 12.6 11.6 1.7 1.7 - - 3.9 3.5 SAIL Neutral 90-37,336 54,100 63,555 3.0 10.0 (10.0) 1.5 60.3 1.2 1.2 - - 1.7 1.4 Vedanta Neutral 322-119,675 81,206 87,345 28.0 29.0 26.5 33.5 12.2 9.6 2.8 2.4 - - 2.2 1.9 Tata Steel Neutral 721-70,064 121,445 126,500 16.2 17.2 65.4 81.3 11.0 8.9 1.8 1.5 - - 1.1 1.0 Oil & Gas GAIL Neutral 509-86,163 53,115 52,344 14.2 15.3 30.0 31.1 17.0 16.4 2.1 2.0 - - 1.3 1.3 ONGC Neutral 194-248,708 83,111 84,934 44.2 44.9 16.4 16.9 11.8 11.5 1.4 1.3 - - 2.9 2.8 Indian Oil Corp Neutral 409-198,388 396,116 432,560 8.5 8.8 40.1 42.2 10.2 9.7 1.8 1.6 - - 0.6 0.6 Reliance Industries Neutral 928-603,553 257,711 267,438 17.0 18.2 89.1 89.5 10.4 10.4 1.0 0.9 - - 2.0 1.9 Pharmaceuticals Alembic Pharma Accumulate 531 600 10,006 3,346 3,915 19.6 19.2 21.0 23.9 25.3 22.2 4.5 3.8 19.1 18.4 3.0 2.6 Alkem Laboratories Ltd Accumulate 2,185 2,341 26,123 6,320 7,341 17.5 19.8 72.7 96.6 30.1 22.6 5.3 4.5 16.7 18.7 4.1 3.4 Aurobindo Pharma Buy 684 823 40,071 17,086 19,478 22.1 22.0 44.7 51.4 15.3 13.3 3.4 2.7 24.7 22.7 2.5 2.1 Aventis* Neutral 4,637-10,679 2,411 2,698 18.8 18.8 151.6 163.9 30.6 28.3 4.8 3.8 25.4 27.5 4.0 3.4 Cadila Healthcare Neutral 428-43,770 11,365 12,926 20.0 20.0 18.4 20.5 23.2 20.9 5.1 4.2 24.3 22.2 3.9 3.4 Cipla Sell 611 462 49,178 16,163 18,711 16.6 16.9 20.7 24.3 29.5 25.1 3.5 3.1 12.6 13.1 3.2 2.7 Dr Reddy's Reduce 2,360 2,040 39,138 13,734 15,548 17.7 20.2 69.9 102.0 33.8 23.1 3.0 2.7 9.2 12.4 3.1 2.7 GSK Pharma* Sell 2,422 2,000 20,512 2,968 3,324 13.8 15.9 37.8 46.3 64.1 52.3 11.2 12.3 16.7 22.4 6.7 6.2
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 Indoco Remedies Sell 292 136 2,690 1,114 1,297 9.9 13.9 5.6 11.4 52.1 25.6 4.0 3.5 7.7 14.5 2.7 2.3 Ipca labs Neutral 596-7,518 3,256 3,647 14.1 17.1 16.2 25.4 36.8 23.5 2.8 2.6 8.0 11.5 2.4 2.1 Lupin Buy 872 1,091 39,415 16,240 18,562 21.3 21.7 42.5 49.6 20.5 17.6 2.6 2.3 13.3 13.7 2.5 2.1 Natco Pharma Accumulate 975 1,057 17,986 1,886 2,016 32.3 29.5 23.2 22.0 42.1 44.2 8.8 7.8 20.9 17.6 9.4 8.8 Sun Pharma Accumulate 540 615 129,667 28,312 31,826 20.7 22.4 18.5 22.3 29.2 24.2 3.3 3.0 11.5 14.0 4.2 3.6 Syngene International Accumulate 548 587 10,952 1,394 1,818 33.0 36.5 15.8 21.0 34.6 26.1 6.4 5.3 18.6 20.3 7.8 6.0 Power Tata Power Neutral 93-25,236 32,547 33,806 20.5 20.5 4.7 5.4 19.9 17.4 1.9 1.6 10.5 10.5 1.8 1.7 NTPC Neutral 178-146,563 86,070 101,246 28.3 30.7 12.9 16.2 13.8 11.0 1.4 1.3 10.6 12.4 3.1 2.7 Power Grid Accumulate 202 223 105,835 29,183 32,946 89.7 90.0 18.0 20.8 11.3 9.7 1.9 1.7 17.7 18.2 7.6 7.0 Real Estate Prestige Estate Neutral 301-11,273 4,607 5,146 21.0 22.2 7.9 9.8 38.1 30.7 2.3 2.2 10.3 12.0 3.6 3.3 MLIFE Accumulate 467 522 2,399 487 590 12.3 17.8 21.0 31.2 22.3 15.0 1.2 1.1 5.2 7.4 3.6 3.0 Telecom Bharti Airtel Neutral 543-216,979 97,903 105,233 36.0 36.3 9.3 11.1 58.4 49.1 2.8 2.7 5.0 5.6 3.2 2.9 Idea Cellular Neutral 102-36,705 35,012 37,689 27.1 27.7 (4.4) (2.7) 1.6 1.7 (6.8) (4.6) 2.4 2.1 Others Abbott India Neutral 5,448-11,576 3,244 3,723 14.9 16.1 167.5 209.4 32.5 26.0 7.2 6.0 23.7 24.8 3.2 2.7 Asian Granito Accumulate 544 582 1,636 1,169 1,286 12.5 12.5 16.0 19.7 34.0 27.6 3.6 3.2 10.7 11.6 1.6 1.5 Bajaj Electricals Neutral 474-4,824 4,646 5,301 6.7 7.6 16.1 22.3 29.5 21.3 4.8 4.1 16.4 19.2 1.0 0.9 Banco Products (India) Neutral 264-1,889 1,530 1,695 13.2 12.7 19.0 20.0 13.9 13.2 2.2 2.0 0.2 0.2 1.1 128.2 Coffee Day Enterprises Ltd Neutral 284-5,848 3,494 3,913 17.4 18.0 4.8 5.7-49.8 2.5 2.4-0.1 2.1 1.9 Elecon Engineering Neutral 106-1,194 171 201 15.0 16.2 36.0 43.0 3.0 2.5 0.3 0.2 0.1 0.1 6.4 5.4 Garware Wall Ropes Neutral 958-2,097 928 1,003 15.2 15.2 39.4 43.2 24.3 22.2 4.0 3.4 16.5 15.4 2.1 1.9 Goodyear India* Neutral 1,030-2,376 1,717 1,866 11.8 12.3 47.9 49.8 21.5 20.7 3.3 2.9 15.6 15.7 1.1 155.0 Hitachi Neutral 2,634-7,162 2,355 2,715 10.3 10.8 49.0 60.9 53.8 43.3 12.6 10.0 0.2 0.2 3.1 2.6 HSIL Neutral 517-3,737 2,240 2,670 14.6 15.0 17.0 22.0 30.4 23.5 2.5 2.4 0.1 0.1 1.9 1.5 Interglobe Aviation Neutral 1,201-46,152 22,570 27,955 14.2 15.0 63.6 81.8 18.9 14.7 9.9 8.4 0.5 0.6 1.7 1.3 Jyothy Laboratories Neutral 388-7,059 1,781 2,044 14.1 15.0 9.4 10.5 41.5 37.0 8.8 8.3 0.2 0.2 4.2 3.6 Linc Pen & Plastics Neutral 345-510 420 462 9.3 9.3 15.3 17.1 22.6 20.2 3.8 3.9 16.9 19.5 1.3 1.2 M M Forgings Neutral 1,162-1,403 542 642 20.1 21.0 41.6 56.8 27.9 20.5 3.9 3.3 0.1 0.2 3.0 2.6 Mirza International Neutral 159-1,908 1,148 1,285 18.0 18.0 8.0 9.4 19.7 17.0 3.3 2.8 16.3 16.1 1.8 1.6 Navkar Corporation Buy 190 265 2,853 561 617 41.5 41.5 11.5 12.7 16.5 14.9 1.7 1.6 10.5 10.4 5.8 5.0
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 Others Nilkamal Neutral 1,840-2,746 2,317 2,525 11.4 11.1 96.0 105.0 19.2 17.5 3.3 2.8 0.2 0.2 1.2 1.0 Parag Milk Foods Neutral 296-2,487 1,987 2,379 7.6 9.0 12.4 18.3 23.9 16.2 3.4 2.9 8.2 13.2 1.4 1.2 Radico Khaitan Neutral 290-3,859 1,811 1,992 13.2 13.2 8.1 8.8 35.8 32.9 3.6 3.9 10.1 12.0 2.5 2.2 Relaxo Footwears Neutral 683-8,215 1,981 2,310 13.7 14.5 12.0 15.5 56.9 44.0 11.1 9.0 0.2 0.2 4.2 3.6 Siyaram Silk Mills Accumulate 769 813 3,603 1,769 1,981 12.7 12.7 22.6 26.2 34.0 29.3 5.3 4.5 15.5 15.5 2.2 2.0 Styrolution ABS India* Neutral 1,073-1,886 1,800 1,980 8.0 8.1 42.0 46.2 25.5 23.2 2.9 2.6 0.1 0.1 1.2 1.1 Surya Roshni Neutral 387-1,696 4,870 5,320 7.7 7.8 22.8 28.1 17.0 13.8 2.3 2.0 0.1 0.1 0.6 0.5 TVS Srichakra Neutral 3,682-2,819 2,729 2,893 12.7 12.5 248.5 265.0 14.8 13.9 4.2 3.4 0.3 0.3 1.0 1.0 Visaka Industries Neutral 642-1,019 1,104 1,214 12.1 12.6 31.0 37.9 20.7 17.0 2.5 2.3 0.1 0.1 1.2 1.0 VIP Industries Accumulate 350 400 4,945 1,450 1,693 10.4 10.5 6.5 7.8 53.5 44.8 11.3 9.9 21.1 22.1 3.4 2.9 Navin Fluorine Neutral 869-4,290 945 1,154 17.5 17.9 28.7 34.8 30.3 25.0 5.0 4.3 - - 4.1 3.2 Century Plyboards India Buy 338 400 7,506 2,007 2,510 22.4 22.6 8.4 11.1 40.2 30.4 8.5 6.9 21.3 22.9 4.1 3.3 LT Foods Accumulate 84 96 2,246 3,287 3,747 11.1 11.5 4.4 5.2 19.1 16.2 2.8 2.3 17.5 17.6 1.2 1.0 Ruchira Papers Buy 198 244 443 470 532 15.6 15.6 16.5 19.0 12.0 10.4 2.4 2.0 20.0 19.2 1.1 1.0 Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on December 26, 2017
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