Market Outlook - Angel Backofficeweb.angelbackoffice.com/Research_ContentManagement/pdf_report/Market_Outlook_05_10...IDBI Bank came into existence, with Parliament passing the IDBI

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Market Outlook October 05, 2015

Market Cues

Indian markets are expected to open in positive tracking the SGX Nifty and the Asian

cues.

The US markets after falling sharply at the open, stocks staged a remarkable

turnaround over the course of the trading day on Friday. The major averages

bounced well off their lows for the session and into positive territory, with the Dow

showing a nearly 460-point swing on the day.

The European markets bounced back into the green in late trade on Friday, as U.S. equity markets began to reverse and recover from the lows. The European markets were trading in green early Friday. However, the markets began to pare those gains and dropped into the red after the U.S. jobs report for September came in weaker than expected. The disappointing data has many investors thinking that an interest rate hike by the Federal Reserve later this month is unlikely.

The Indian markets posted modest gains on Thursday, with a firm rupee and positive global cues supporting sentiment. Stocks finished off their day's highs as traders locked in some profits at higher levels ahead of the long weekend. The stock markets were closed on Friday on account of Gandhi Jayanti.

News Analysis El Nino Takes a Toll on Auto, FMCG Stocks

Government exploring options to dilute stake in IDBI Bank Detailed analysis on Pg2

Investor’s Ready Reckoner

Key Domestic & Global Indicators

Stock Watch: Latest investment recommendations on 150+ stocks

Refer Pg4 onwards

Top Picks Company Sector Rating

CMP (`)

Target (`)

Upside (%)

Axis Bank Financials Buy 496 701 41.5

ICICI Bank Financials Buy 267 370 38.4

Power Grid Power Buy 130 170 30.3

TCS IT Buy 2,640 3,168 20.0

Aurobindo Pharma Pharmaceuticals Accumulate 770 872 13.2

More Top Picks on Pg3

Key Upcoming Events Date

Region

Event Description

Previous Reading

ConsensusExpectations

Oct 07 UK

Industrial Production YoY 0.8 ---

Oct 08 UK

BOE Announces rates 0.50 0.50

Oct 09 India Imports YoY% (9.95) --

India

Exports YoY% (20.66) --

Oct 12 India

Industrial Production YoY (4.20) --

Oct 13 UK CPI (YoY) -- --

Domestic Indices Chg (%) (Pts) (Close)

BSE Sensex 0.3 66 26,221

Nifty 0.0 2 7,951

Mid Cap 0.2 19 10,819

Small Cap 0.2 22 11,043

Bankex (0.4) (73) 19,608

Global Indices Chg (%) (Pts) (Close)

Dow Jones 1.2 200 16,472

Nasdaq 1.7 81 4,708

FTSE 0.9 58 6,130

Nikkei 0.0 3 17,725

Hang Seng 3.2 660 21,506

Shanghai Com 0.5 15 3,053

Advances / Declines Bse Nse

Advances 1,375 756

Declines 1,325 739

Unchanged 118 69

Volumes (` Cr)

BSE 2,937

NSE 17,400

Net Inflows (` Cr) Net Mtd Ytd

FII 222 (5,696) 1,18,065

MFs 1,032 7,708 78,356

Top Gainers Price (`) Chg (%)

Infratel 397 11.9

Indiacem 82 5.5

Pmcfin 1 5.0

Vakrangee 133 4.3

Frl 126 3.8

Top Losers Price (`) Chg (%)

Hcltech 858 (12.7)

Jswenergy 89 (4.9)

Essaroil 190 (3.8)

Gvkpil 7 (3.6)

Oberoirlty 264 (3.2) As on October 01, 2015



El Nino Takes a Toll on Auto, FMCG Stocks

Shares of automobile manufacturers, consumer-oriented companies, and

agriculture-related firms, whose prospects are partly tied to rural consumers, could

slip as a below-average monsoon this year may hurt their quarterly earnings. India

received 14% below-normal rains between June and September, the lowest since

2009, as the strongest El Nino in almost two decades left vast tracts of land

parched, affecting crops.

Shares of Hero MotoCorp, M&M and HUL could face pressure as rural income

and consumption may get impacted by a sub-par monsoon. The contribution of

rural consumers to sales of these firms is quite significant. Auto firms, especially

twowheeler makers such as Hero MotoCorp and Bajaj Auto, have a lot riding on

the monsoon, as nearly half the two-wheeler sales come from semi-urban and

rural India. A weak monsoon will also directly impact sales of farm equipment,

affecting companies such as M&M, which gets almost a third of its revenue from

tractor sales.

Government exploring options to dilute stake in IDBI Bank

The government is looking to dilute stake in IDBI Bank through strategic sale or

public offering. Various options are being considered, including strategic sale and

offer for sale (OFS), for dilution of the government stake in IDBI Bank, but these

are at a preliminary stage.

IDBI Bank came into existence, with Parliament passing the IDBI Repeal Act in

2003. In terms of provisions of the Repeal Act, IDBI has been functioning as a

bank in addition to its earlier role of a financial institution.

Citing the example of Axis Bank, he had wondered if IDBI Bank can follow that

model. The government indirectly controls 29.19 per cent in Axis Bank through

the administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), the

Life Insurance Corporation and four other public sector general insurance companies.

In the case of IDBI Bank, the government holding stands at 76.5 per cent.

However, IDBI Bank in a regulatory filing to stock exchanges said it has not

received any communication from the government on this.

We are willing to look at all other changes, including bringing down government

equity to 52 per cent (in state-run banks), and therefore giving additional financial

strength and teeth to the banking institutions themselves," he had said. We

currently have a Neutral Rating on the stock.

Economic and Political News Manufacturing PMI Hits 7-month Low on Poor Demand Advance tax from steel, banking sectors falls Indian e-commerce market to grow 36% in 2015-20: study

Corporate News Jet Airways Gets `700 cr in Fresh Investment from Etihad SPV L&T Metro Keen to Raise $180 mn via ECB Route HDFC to Raise `10,000 cr Through NCDs, Warrants



Top Picks ★★★★★ Large Cap

Company Market Cap

(` Cr) CMP

(`) Target

(`)Upside

(%)Rationale

Aurobindo 44,965 770 872 13.2 Robust US sales along with the acquisations, will aid the growth and stable margins.

Axis Bank 1,17,820 496 701 41.5 Healthy pace of branch expansion, backed by distribution network.

ICICI Bank 1,55,268 267 370 38.4 Robust franchise and capital adequacy position will help the bank to outperform the industry average.

Infosys 2,69,489 1,173 1,306 11.3 Back on the growth trend, expect a long term growth of 14% to be a US$20bn in FY2020.

Inox Wind 7,914 357 505 41.6 Government thrust on Renewable sector and strong order book would drive future growth.

LIC HFL 23,371 463 570 23.1 LICHF continues to grow its retail loan book at a healthy pace with improvement in asset quality.

Power Grid 68,246 130 170 30.3 Direct beneficiary of the huge investments lined up in the power transmission sector.

TCS 5,17,045 2,640 3,168 20.0 Growth to pick up from 2HFY2017, attractive given the risk-reward.

Tech Mahindra 54,158 563 646 14.8 Acquisitions, to drive growth, normalised valuations attractive.

Yes Bank 30,499 728 953 30.9 An improving liability franchise, capital adequacy well above Basel III requirements and lowest NPA ratio in the industry.

Sun Pharma 2,14,353 891 950 6.7 FY2017, to be a good year for the company in terms of growth and margins.

Source: Company, Angel Research

Mid Cap

Company Market Cap

(` Cr) CMP

(`) Target

(`)Upside

(%)Rationale

Bajaj Electricals 2,522 250 341 36.4 Visible turnaround in E&P business to drive the earnings.

Garware Wall Ropes 769 351 390 11.0 Higher exports & easing material prices to drive profitability.

MBL Infrastructures 1,016 245 360 46.9 Comfortable balance sheet to support strong growth; this coupled with attractive valuation to lead to rerating.

Minda Industries 805 507 652 28.5 New product introductions and increased sourcing by clients to enable outpace industry growth.

MT Educare 513 129 169 31.3 Strong brand & quality teaching with innovative technologies & higher government educational spending to boost growth.

Radico Khaitan 1,154 87 112 29.1 Earnings boost on back of stable material prices and favourable pricing environment. Valuation discount to peers provides additional comfort.

Surya Roshni 571 130 183 40.6 Structural shift in the Lighting industry towards LED lighting will drive growth.

Tree House 1,329 314 449 43.0 Robust expansion plan for pre-schools to drive growth.

Source: Company, Angel Research

h

1

Market Outlook

October 05, 2015

www.angelbroking.com www.angelbroking.com

Macro watch

Exhibit 1: Quarterly GDP trends

Source: CSO, Angel Research

Exhibit 2: IIP trends

Source: MOSPI, Angel Research

Exhibit 3: Monthly CPI inflation trends

Source: MOSPI, Angel Research

Exhibit 4: Manufacturing and services PMI

Source: Market, Angel Research; Note: Level above 50 indicates expansion

Exhibit 5: Exports and imports growth trends

Source: Bloomberg, Angel Research

Exhibit 6: Key policy rates

Source: RBI, Angel Research

6.3

5.0 4.7

7.0

7.5

6.4 6.7 6.7

8.4

6.6

7.5

7.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

2Q

FY13

3Q

FY13

4Q

FY13

1Q

FY14

2Q

FY14

3Q

FY14

4Q

FY14

1Q

FY15

2Q

FY15

3Q

FY15

4Q

FY15

1Q

FY16

(%)

2.6

(2.7)

5.2

3.6

2.8

4.8

2.5 3.0

2.5

4.4 4.2

(4.0)

(3.0)

(2.0)

(1.0)

-

1.0

2.0

3.0

4.0

5.0

6.0

Sep-14

Oct-14

Nov-14

Dec-14

Jan-15

Feb-15

Mar-15

Apr-15

May-15

Jun-15

Jul-15

(%)

5.6

4.6

3.3

4.3

5.2 5.4

5.3

4.9 5.0

5.4

3.7 3.7

-

1.0

2.0

3.0

4.0

5.0

6.0

Sep-14

Oct-14

Nov-14

Dec-14

Jan-15

Feb-15

Mar-15

Apr-15

May-15

Jun-15

Jul-15

Aug-15

(%)

44.0

46.0

48.0

50.0

52.0

54.0

56.0

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

Mfg. PMI Services PMI

(30.0)

(20.0)

(10.0)

0.0

10.0

20.0

30.0

Sep

-14

Oct-14

Nov-14

Dec-14

Jan-15

Feb

-15

Mar-15

Apr-15

May-15

Jun-15

Jul-15

Aug

-15

Exports yoy growth Imports yoy growth(%)

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Oct-14

Nov-14

Dec-14

Jan-15

Feb-15

Mar-15

May-15

Jun-15

Jul-15

Aug-15

Sep-15

Oct-15

Repo rate Reverse Repo rate CRR (%)

h

2

Market Outlook

October 05, 2015


Global watch

Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries


Exhibit 2: 2015 GDP Growth projection by IMF (%, yoy) across select developing and developed countries

Source: IMF, Angel Research

Exhibit 3: One year forward P-E ratio across select developing and developed countries

Source: IMF, Angel Research

(2.6)

(4.6)

5.3

7.0

1.2

4.7 4.9

2.8 2.4

2.7

1.6 1.1 0.8

(6.0)

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

Brazil

Russia

India

China

South A

frica

Indonesia

Malaysia

Thailand

UK

USA

Germ

any

France

Japan

(%)

(1.0)(3.8)

7.5 6.8

2.0

5.2 4.8

3.7

2.7 3.1

1.6 1.2 1.0

(6.0)

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

Brazil

Russia

India

China

South A

frica

Indonesia

Malaysia

Thailand

UK

USA

Germ

any

France

Japan

(%)

11

.4

5.1

17

.1

12

.4

17

.3

13

.3

15

.7

13

.4

14

.8

14

.3

11

.6

14

.7

13

.7

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Brazil

Russia

India

China

South

Africa

Indonesia

Malaysia

Thailand

UK

USA

Germ

any

France

Japan

(x)

h

3

Market Outlook

October 05, 2015


Exhibit 4: Relative performance of indices across globe

Returns (%)

Country Name of index Closing price 1M 3M 1YR

Brazil Bovespa 47,033 (4.4) (15.1) (19.5)

Russia Micex 1,613 (5.2) 0.1 16.7

India Nifty 7,951 (0.0) (5.0) (2.4)

China Shanghai Composite 3,053 (1.0) (28.6) 31.1

South Africa Top 40 45,668 1.1 (2.7) 1.5

Mexico Mexbol 42,735 (1.5) (5.1) (5.2)

Indonesia LQ45 701 (8.3) (15.9) (19.6)

Malaysia KLCI 1,629 1.0 (4.6) (11.5)

Thailand SET 50 868 (4.1) (12.8) (17.8)

USA Dow Jones 16,472 (2.2) (7.6) (3.1)

UK FTSE 6,130 0.8 (6.9) (6.6)

Japan Nikkei 17,725 (7.4) (12.4) 9.4

Germany DAX 9,553 (5.8) (13.0) 2.0

France CAC 4,459 (4.2) (7.9) 3.9


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 215 - 4,187 2,075 2,394 14.4 14.4 9.5 11.0 22.7 19.6 4.5 3.9 21.1 21.3 2.1 1.8

United Phosphorus Accumulate 454 510 19,454 13,698 15,752 17.6 17.6 32.1 38.5 14.1 11.8 2.8 2.3 21.4 21.3 1.5 1.3

Auto & Auto Ancillary

Ashok Leyland Accumulate 94 102 26,822 18,763 22,357 11.1 11.2 3.6 4.8 26.2 19.6 4.8 4.5 18.7 22.6 1.4 1.1

Bajaj Auto Accumulate 2,314 2,438 66,955 23,544 27,245 19.8 19.8 127.0 143.4 18.2 16.1 5.5 4.7 30.3 29.4 2.4 2.1

Eicher Motors Buy 18,286 22,859 49,634 11,681 15,550 15.3 16.9 358.5 564.3 51.0 32.4 15.3 11.4 29.8 34.9 4.1 3.1

Hero Motocorp Accumulate 2,413 2,672 48,192 28,500 32,764 14.1 14.3 146.9 167.0 16.4 14.5 6.2 5.3 37.8 36.5 1.5 1.3

L G Balakrishnan & Bros Neutral 437 - 686 1,254 1,394 11.6 11.8 35.9 41.7 12.2 10.5 1.7 1.5 13.5 13.8 0.7 0.6

Mahindra and Mahindra Accumulate 1,249 1,357 77,543 37,986 42,660 12.8 13.2 51.6 61.9 24.2 20.2 3.6 3.2 14.6 15.6 1.7 1.4

Maruti Accumulate 4,580 4,960 138,348 58,102 68,587 16.7 16.9 182.0 225.5 25.2 20.3 5.0 4.3 19.9 21.0 2.2 1.8

Minda Industries Buy 507 652 805 2,567 2,965 7.3 8.0 38.8 54.3 13.1 9.3 1.9 1.6 14.4 16.8 0.4 0.3

Rane Brake Lining Buy 284 366 225 454 511 11.1 11.4 23.8 28.1 12.0 10.1 1.7 1.5 14.2 15.3 0.6 0.6

Setco Automotive Neutral 232 - 619 594 741 12.7 13.7 8.4 15.8 27.6 14.7 2.9 2.5 10.4 16.9 1.5 1.2

Tata Motors Neutral 297 - 85,750 264,038 297,882 13.8 13.9 34.5 38.9 8.6 7.6 1.5 1.2 17.6 16.8 0.5 0.5

TVS Motor Neutral 230 - 10,908 11,702 13,713 6.8 7.7 10.1 14.5 22.7 15.8 5.6 4.5 24.5 28.3 0.9 0.8

Amara Raja Batteries Neutral 1,030 - 17,587 5,101 6,224 17.8 17.6 31.1 39.2 33.1 26.3 8.2 6.5 24.8 24.8 3.4 2.7

Exide Industries Neutral 152 - 12,899 7,363 8,247 13.7 14.5 6.6 7.7 23.0 19.7 2.9 2.6 12.6 13.3 1.5 1.3

Apollo Tyres Neutral 182 - 9,277 12,576 12,978 16.8 16.1 22.3 19.9 8.2 9.2 1.4 1.2 17.2 13.4 0.8 0.8

Ceat Neutral 1,261 - 5,101 6,041 6,597 14.3 14.2 101.5 116.6 12.4 10.8 2.5 2.1 20.0 19.1 1.0 0.9

JK Tyres Neutral 101 - 2,296 7,446 7,669 15.2 14.0 19.6 18.4 5.2 5.5 1.3 1.1 25.2 19.5 0.7 0.6

Swaraj Engines Neutral 872 - 1,083 593 677 14.5 14.8 51.2 60.8 17.0 14.3 4.0 3.6 23.3 24.8 1.7 1.4

Subros Neutral 76 - 458 1,268 1,488 11.6 11.9 3.7 6.6 20.7 11.6 1.4 1.3 6.8 11.4 0.7 0.5

Indag Rubber Neutral 181 - 476 283 329 17.0 17.2 13.0 15.4 14.0 11.8 3.1 2.5 21.8 21.6 1.4 1.2

Capital Goods

ACE Neutral 37 - 363 660 839 4.7 8.2 1.0 3.9 36.7 9.4 1.2 1.0 3.2 11.3 0.7 0.6

BEML Neutral 1,243 - 5,178 3,277 4,006 6.0 8.9 29.2 64.3 42.6 19.3 2.4 2.2 5.7 11.7 1.7 1.3

BGR Energy Neutral 109 - 789 3,615 3,181 9.5 9.4 16.7 12.4 6.5 8.8 0.6 0.6 10.0 7.0 0.6 0.8

BHEL Neutral 200 - 48,879 33,722 35,272 10.8 11.7 10.5 14.2 19.0 14.1 1.4 1.3 7.0 9.0 1.5 1.5

Blue Star Accumulate 340 387 3,056 3,649 4,209 5.0 5.9 9.2 14.7 37.2 23.1 6.7 6.3 9.1 17.5 0.9 0.8

Crompton Greaves Buy 169 204 10,611 13,484 14,687 4.9 6.2 4.5 7.1 37.6 23.9 2.7 2.5 7.2 10.8 0.9 0.8

Inox Wind Buy 357 505 7,914 4,980 5,943 17.0 17.5 26.6 31.6 13.4 11.3 4.0 3.0 35.0 30.0 1.7 1.4


October 05, 2015

Stock Watch



Capital Goods

KEC International Neutral 141 - 3,616 8,791 9,716 6.1 6.8 5.4 8.2 26.1 17.2 2.6 2.4 10.0 14.0 0.6 0.6

Thermax Neutral 842 - 10,034 6,413 7,525 7.4 8.5 30.5 39.3 27.6 21.4 4.3 3.7 15.0 17.0 1.5 1.3

Cement

ACC Accumulate 1,360 1,548 25,540 11,856 14,092 14.5 17.8 47.6 76.1 28.6 17.9 2.9 2.7 10.6 15.7 2.0 1.6

Ambuja Cements Accumulate 210 233 32,582 10,569 12,022 20.7 22.2 8.7 10.7 24.1 19.6 3.1 2.9 13.0 15.2 2.7 2.4

India Cements Buy 82 112 2,531 4,716 5,133 15.9 16.9 3.7 7.5 22.3 11.0 0.8 0.8 3.8 7.3 0.8 0.7

JK Cement Buy 647 767 4,522 4,056 4,748 14.5 17.0 22.6 41.1 28.6 15.7 2.6 2.3 9.3 15.3 1.5 1.3

J K Lakshmi Cement Accumulate 378 430 4,453 2,947 3,616 16.7 19.9 11.5 27.2 32.9 13.9 3.1 2.7 9.8 20.8 1.9 1.5

Mangalam Cements Neutral 223 - 594 1,053 1,347 10.5 13.3 8.4 26.0 26.5 8.6 1.1 1.0 4.3 12.5 0.9 0.7

Orient Cement Buy 159 183 3,256 1,854 2,524 21.2 22.2 7.7 11.1 20.6 14.3 3.0 2.6 13.3 15.7 2.5 1.7

Ramco Cements Neutral 336 - 7,987 4,036 4,545 20.8 21.3 15.1 18.8 22.2 17.9 2.7 2.4 12.9 14.3 2.5 2.1

Shree Cement^ Neutral 11,968 - 41,695 7,150 8,742 26.7 28.6 228.0 345.5 52.5 34.6 7.7 6.5 15.7 20.3 5.6 4.5

UltraTech Cement Buy 2,774 3,282 76,117 27,562 31,548 20.4 22.3 111.9 143.3 24.8 19.4 3.5 3.0 15.2 16.8 2.8 2.4

Construction

ITNL Neutral 99 - 2,445 7,360 8,825 34.0 35.9 1.0 5.0 99.1 19.8 0.4 0.4 0.3 1.4 3.8 3.7

KNR Constructions Neutral 560 - 1,575 915 1,479 14.3 13.9 20.3 37.2 27.6 15.1 2.5 2.2 9.6 15.6 1.8 1.2

Larsen & Toubro Buy 1,489 2,013 138,603 68,920 82,446 10.9 11.5 57.0 73.0 26.1 20.4 2.4 2.2 13.6 15.5 2.2 1.9

Gujarat Pipavav Port Neutral 185 - 8,934 721 784 53.1 53.6 8.2 9.1 22.5 20.3 3.6 2.9 20.0 18.3 12.0 10.6

MBL Infrastructures Buy 245 360 1,016 2,313 2,797 12.2 14.6 19.0 20.0 12.9 12.3 1.3 1.2 11.3 10.6 1.1 1.0

Nagarjuna Const. Neutral 75 - 4,150 7,892 8,842 8.3 9.1 2.4 5.3 31.1 14.1 1.2 1.2 4.2 8.6 0.8 0.6

PNC Infratech Neutral 507 - 2,600 1,798 2,132 13.2 13.5 22.0 30.0 23.0 16.9 2.1 1.9 11.5 11.4 1.5 1.3

Simplex Infra Neutral 295 - 1,460 6,241 7,008 10.4 10.7 20.0 36.0 14.8 8.2 1.2 1.1 6.8 11.1 0.7 0.6

Financials

Allahabad Bank Neutral 75 - 4,291 8,438 9,521 2.8 2.8 21.9 27.0 3.4 2.8 0.4 0.3 10.2 11.5 - -

Axis Bank Buy 496 701 117,820 26,941 32,298 3.5 3.6 37.4 46.4 13.3 10.7 2.7 2.3 18.7 20.0 - -

Bank of Baroda Neutral 181 - 40,094 19,027 21,737 1.9 2.0 16.9 24.5 10.7 7.4 1.0 0.9 9.1 12.1 - -

Bank of India Neutral 134 - 8,940 16,438 18,706 1.9 2.0 19.2 40.9 7.0 3.3 0.4 0.3 4.5 9.1 - -

Canara Bank Neutral 279 - 14,395 15,491 17,269 2.0 2.0 61.6 70.9 4.5 3.9 0.5 0.5 10.5 11.1 - -

Dena Bank Neutral 40 - 2,225 3,498 3,977 2.1 2.3 7.8 10.7 5.1 3.7 0.4 0.3 6.5 8.4 - -

Federal Bank Neutral 65 - 11,202 3,527 4,135 3.0 3.1 5.2 6.7 12.6 9.8 1.3 1.2 10.8 12.7 - -

HDFC Neutral 1,199 - 189,203 10,883 12,799 3.5 3.4 43.0 50.6 27.9 23.7 5.5 5.0 25.9 26.7 - -

HDFC Bank Buy 1,068 1,255 269,056 38,059 46,851 4.4 4.5 50.0 62.7 21.4 17.0 3.7 3.2 18.8 20.2 - -


October 05, 2015

Stock Watch



Financials

ICICI Bank Buy 267 370 155,268 35,810 41,871 3.4 3.5 22.0 26.2 12.2 10.2 2.1 1.8 15.0 15.6 - -

IDBI Bank Neutral 79 - 12,735 9,860 10,978 1.8 1.9 9.3 15.6 8.6 5.1 0.6 0.5 6.4 10.1 - -

Indian Bank Neutral 134 - 6,426 6,267 7,171 2.4 2.5 25.4 32.1 5.3 4.2 0.4 0.4 8.0 9.3 - -

LIC Housing Finance Buy 463 570 23,371 2,934 3,511 2.3 2.3 30.9 36.8 15.0 12.6 2.4 2.1 16.8 17.5 - -

Oriental Bank Neutral 131 - 3,921 7,730 8,595 2.4 2.5 38.8 47.4 3.4 2.8 0.3 0.3 8.6 9.8 - -

Punjab Natl.Bank Neutral 133 - 24,582 23,446 26,624 2.8 2.9 17.8 27.5 7.5 4.8 0.7 0.6 8.5 12.1 - -

South Ind.Bank Neutral 22 - 3,024 1,930 2,215 2.4 2.4 2.6 3.6 8.6 6.2 0.9 0.8 9.9 12.5 - -

St Bk of India Buy 235 307 178,109 83,847 96,307 2.8 2.8 20.1 25.1 11.7 9.4 1.3 1.1 11.5 13.1 - -

Union Bank Neutral 174 - 11,059 12,755 14,439 2.3 2.4 31.5 39.9 5.5 4.4 0.6 0.5 9.9 11.6 - -

Vijaya Bank Neutral 34 - 2,930 3,594 3,969 1.8 1.9 5.8 7.1 5.9 4.8 0.5 0.5 8.2 9.3 - -

Yes Bank Buy 728 953 30,499 7,204 9,078 3.2 3.2 57.8 69.5 12.6 10.5 2.2 1.9 19.6 22.6 - -

FMCG

Asian Paints Neutral 839 - 80,462 16,553 19,160 16.0 16.2 17.7 21.5 47.5 39.0 12.6 11.3 29.4 31.2 4.7 4.1

Britannia Neutral 3,124 - 37,480 8,065 9,395 9.6 10.2 47.2 65.5 66.2 47.7 22.0 20.8 38.3 41.2 4.5 3.9

Colgate Neutral 964 - 26,218 4,836 5,490 19.5 19.7 48.5 53.2 19.9 18.1 14.6 12.7 99.8 97.5 5.3 4.7

Dabur India Neutral 279 - 48,989 9,370 10,265 17.1 17.2 7.3 8.1 38.0 34.4 11.5 9.3 33.7 30.6 5.1 4.7

GlaxoSmith Con* Neutral 6,020 - 25,319 4,919 5,742 17.2 17.4 168.3 191.2 35.8 31.5 10.2 8.6 28.8 28.9 4.7 4.0

Godrej Consumer Neutral 1,227 - 41,768 10,168 12,886 16.1 16.1 32.1 38.4 38.2 31.9 7.8 7.2 19.7 21.0 4.2 3.3

HUL Neutral 815 - 176,258 34,940 38,957 17.5 17.7 20.8 24.7 39.2 33.0 43.6 34.8 110.5 114.2 4.9 4.3

ITC Buy 329 409 263,911 41,068 45,068 37.8 37.4 13.9 15.9 23.6 20.7 7.9 7.0 34.1 33.8 6.1 5.5

Marico Neutral 399 - 25,758 6,551 7,766 15.7 16.0 10.4 12.5 38.5 31.9 11.2 9.3 33.2 32.4 3.9 3.3

Nestle* Neutral 6,401 - 61,714 11,291 12,847 22.2 22.3 158.9 184.6 40.3 34.7 21.1 18.9 55.0 57.3 5.3 4.6

Tata Global Accumulate 130 144 8,201 8,635 9,072 9.8 9.9 6.5 7.6 20.0 17.1 2.0 1.9 6.8 7.4 0.9 0.8

IT

HCL Tech^ Buy 858 1,132 120,639 42,038 47,503 23.5 23.5 56.4 62.9 15.2 13.6 3.5 2.7 23.2 19.8 2.5 2.0

Infosys Accumulate 1,173 1,306 269,489 60,250 66,999 28.0 28.0 58.3 63.7 20.1 18.4 4.2 3.6 20.9 19.7 3.8 3.3

TCS Buy 2,640 3,168 517,045 108,420 123,559 28.8 28.7 127.2 143.9 20.8 18.3 8.3 7.7 39.9 41.8 4.4 3.8

Tech Mahindra Accumulate 563 646 54,158 25,566 28,890 16.0 17.0 26.3 31.9 21.4 17.7 3.9 3.3 17.9 18.6 1.9 1.6

Wipro Buy 599 719 147,943 52,414 58,704 23.7 23.8 38.4 42.3 15.6 14.2 3.0 2.7 19.5 18.0 2.4 2.0

Media

D B Corp Accumulate 322 356 5,912 2,241 2,495 27.8 27.9 21.8 25.6 14.8 12.6 3.9 3.4 26.7 28.5 2.6 2.3

HT Media Neutral 84 - 1,950 2,495 2,603 11.2 11.2 7.3 8.6 11.5 9.7 0.9 0.8 7.4 8.1 0.3 0.3


October 05, 2015

Stock Watch



Media

Jagran Prakashan Accumulate 142 156 4,644 1,939 2,122 26.0 26.0 8.3 9.2 17.1 15.4 2.9 2.6 17.5 17.1 2.4 2.1

Sun TV Network Neutral 366 - 14,437 2,779 3,196 70.2 70.5 22.8 27.3 16.1 13.4 4.0 3.6 26.7 28.3 4.9 4.3Hindustan Media Ventures Buy 241 292 1,768 920 1,031 20.0 20.0 19.2 20.9 12.5 11.5 2.1 1.8 16.4 15.3 1.5 1.3

Metals & Mining

Coal India Buy 328 400 207,303 72,015 78,415 21.2 21.5 21.7 25.3 15.1 13.0 5.1 5.1 33.1 39.1 2.1 2.0

Hind. Zinc Neutral 139 - 58,753 15,258 16,495 44.2 45.6 17.6 19.2 7.9 7.3 1.2 1.1 15.9 15.3 1.6 1.1

Hindalco Neutral 71 - 14,599 104,356 111,186 8.7 9.5 6.7 11.1 10.5 6.4 0.4 0.4 3.5 5.9 0.7 0.6

JSW Steel Neutral 875 - 21,160 48,125 53,595 18.8 21.0 46.9 97.5 18.7 9.0 0.9 0.8 4.4 9.5 1.3 1.1

NMDC Neutral 94 - 37,229 8,237 10,893 46.6 44.5 10.0 11.7 9.4 8.1 1.1 0.9 12.5 13.0 4.3 3.3

SAIL Neutral 51 - 20,960 45,915 53,954 7.2 10.5 1.5 4.4 33.7 11.6 0.5 0.5 2.3 4.1 1.1 1.0

Vedanta Neutral 83 - 24,726 71,445 81,910 26.2 26.3 12.9 19.2 6.5 4.4 0.5 0.4 7.2 8.9 0.8 0.6

Tata Steel Neutral 212 - 20,604 136,805 149,228 11.3 11.9 26.4 36.8 8.0 5.8 0.6 0.6 6.0 8.0 0.7 0.6

Oil & Gas

Cairn India Neutral 153 - 28,657 11,323 12,490 49.4 51.0 20.7 20.7 7.4 7.4 0.5 0.5 6.4 6.1 1.6 0.9

GAIL Neutral 294 - 37,325 64,856 70,933 9.1 9.6 24.0 28.9 12.3 10.2 1.1 1.0 8.8 9.6 0.8 0.7

ONGC Neutral 232 - 198,744 154,564 167,321 36.8 37.4 28.6 32.5 8.1 7.2 1.0 1.0 12.7 13.5 1.5 1.4

Petronet LNG Buy 176 210 13,174 39,007 40,785 3.8 4.2 9.2 11.0 19.2 16.0 2.1 2.0 11.6 12.7 0.4 0.4

Indian Oil Corp Accumulate 401 455 97,422 359,607 402,760 5.9 6.1 42.5 48.7 9.5 8.2 1.3 1.1 14.1 14.4 0.4 0.3

Reliance Industries Accumulate 862 930 279,250 313,085 362,904 13.1 13.8 78.4 92.9 11.0 9.3 1.2 1.1 10.8 11.6 1.4 1.2

Pharmaceuticals

Alembic Pharma Neutral 700 - 13,189 2,601 3,115 21.2 20.2 20.8 23.9 33.6 29.3 10.8 8.2 37.2 31.8 5.1 4.2

Aurobindo Pharma Accumulate 770 872 44,965 14,923 17,162 23.0 23.0 38.2 43.6 20.2 17.7 6.2 4.7 36.0 30.2 3.4 2.9

Aventis* Neutral 4,082 - 9,402 2,156 2,455 15.1 16.8 109.7 133.9 37.2 30.5 5.1 4.2 18.4 22.5 4.1 3.4

Cadila Healthcare Neutral 2,101 - 43,010 10,224 11,840 20.0 21.0 71.0 85.6 29.6 24.5 7.9 6.3 30.1 28.5 4.3 3.6

Cipla Accumulate 635 671 51,013 14,359 16,884 21.3 19.7 28.4 30.5 22.4 20.8 4.0 3.4 19.3 17.5 3.5 2.9

Dr Reddy's Neutral 4,230 - 72,129 18,213 21,214 22.6 22.7 163.0 192.5 26.0 22.0 5.3 4.4 22.5 20.0 3.9 3.3

Dishman Pharma Neutral 354 - 2,853 1,716 1,888 20.2 20.2 16.3 21.6 21.7 16.4 2.0 1.8 9.7 11.7 1.8 1.5

GSK Pharma* Neutral 3,340 - 28,287 2,870 3,158 20.0 22.1 59.5 68.3 56.1 48.9 16.6 17.0 28.5 34.3 9.4 8.6

Indoco Remedies Neutral 312 - 2,878 1,088 1,262 18.2 18.2 13.1 15.5 23.8 20.2 4.7 3.9 21.2 21.1 2.7 2.3

Ipca labs Accumulate 737 800 9,296 3,507 4,078 17.6 18.6 25.8 32.0 28.6 23.0 3.7 3.2 13.8 14.9 2.9 2.5

Lupin Neutral 2,107 - 94,835 14,864 17,244 26.9 26.9 62.1 71.1 33.9 29.6 8.2 6.5 27.4 24.6 6.1 5.1

Sun Pharma Accumulate 891 950 214,353 28,163 32,610 25.8 30.7 17.4 26.9 51.2 33.1 4.9 4.2 13.0 16.6 7.1 5.9


October 05, 2015

Stock Watch



Power

Tata Power Neutral 66 - 17,810 35,923 37,402 22.6 22.8 4.1 5.2 16.2 12.8 1.2 1.2 7.5 9.3 1.4 1.3

NTPC Buy 124 157 101,996 87,064 98,846 23.5 23.5 11.7 13.2 10.6 9.4 1.2 1.1 11.4 12.1 2.2 2.0

Power Grid Buy 130 170 68,246 20,702 23,361 86.7 86.4 12.1 13.2 10.8 9.9 1.6 1.4 15.6 15.1 8.2 7.7

Telecom

Bharti Airtel Neutral 340 - 135,812 101,748 109,191 32.1 31.7 12.0 12.5 28.3 27.2 1.9 1.8 6.9 6.7 2.0 1.8

Idea Cellular Neutral 150 - 54,012 34,282 36,941 32.0 31.5 5.9 6.2 25.4 24.2 2.3 2.1 9.9 9.3 2.2 2.0

zOthers

Abbott India Neutral 5,737 - 12,191 2,715 3,153 14.5 14.1 134.3 152.2 42.7 37.7 10.7 8.8 27.4 25.6 4.2 3.6

Bajaj Electricals Buy 250 341 2,522 4,719 5,287 5.2 5.8 8.6 12.7 29.2 19.7 3.3 2.9 11.4 14.8 0.5 0.5

Finolex Cables Neutral 235 - 3,598 2,728 3,036 10.8 11.0 14.4 16.8 16.3 14.0 2.5 2.2 15.2 15.3 1.1 0.9

Goodyear India* Buy 569 655 1,313 1,953 1,766 12.4 12.0 67.4 59.6 8.4 9.6 2.1 1.8 27.7 20.2 0.5 0.4

Hitachi Neutral 1,488 - 4,045 1,806 2,112 9.0 9.2 28.6 29.1 52.0 51.2 12.9 10.4 28.1 22.6 2.3 2.0

Jyothy Laboratories Neutral 316 - 5,720 1,620 1,847 11.5 11.5 7.3 8.5 43.3 37.3 5.6 5.2 13.3 14.4 3.4 2.9

MRF Neutral 41,567 - 17,629 20,727 14,841 19.3 18.6 4,905.8 3,351.9 8.5 12.4 2.7 2.2 37.6 19.6 0.8 1.1

Page Industries Neutral 13,352 - 14,893 1,929 2,450 19.8 20.1 229.9 299.0 58.1 44.7 25.6 17.8 52.1 47.1 7.8 6.1

Relaxo Footwears Neutral 531 - 6,378 1,767 2,152 12.3 12.5 19.3 25.1 27.6 21.2 6.8 5.2 27.7 27.8 3.7 3.0

Siyaram Silk Mills Buy 977 1,221 916 1,653 1,873 11.7 12.2 99.3 122.1 9.8 8.0 1.8 1.5 19.5 20.2 0.7 0.6

Styrolution ABS India* Neutral 740 - 1,302 1,271 1,440 8.6 9.2 32.0 41.1 23.1 18.0 2.4 2.1 10.7 12.4 1.0 0.9

Tree House Buy 314 449 1,329 259 324 56.8 56.8 17.0 21.7 18.5 14.5 1.9 1.7 10.1 11.5 5.0 4.2

TVS Srichakra Buy 2,594 3,210 1,986 2,127 2,388 15.2 14.9 237.7 267.5 10.9 9.7 4.6 3.3 51.7 39.8 1.0 0.8

HSIL Accumulate 269 302 1,943 2,182 2,404 16.3 16.5 15.8 18.9 17.0 14.2 1.4 1.3 8.4 9.4 1.2 1.1Kirloskar Engines India Ltd Accumulate 279 297 4,030 2,634 3,252 10.1 12.0 10.9 17.4 25.6 16.0 2.9 2.6 11.4 16.8 1.2 0.9

M M Forgings Buy 545 797 658 563 671 22.1 22.9 51.0 66.5 10.7 8.2 2.2 1.8 23.1 24.1 1.3 1.1

Banco Products (India) Neutral 119 - 850 1,208 1,353 11.0 12.3 10.8 14.5 11.0 8.2 1.3 1.1 11.9 14.5 0.7 0.6

Competent Automobiles Neutral 145 - 89 1,007 1,114 3.1 3.1 23.7 28.2 6.1 5.2 0.9 0.8 13.9 14.6 0.1 0.1

Nilkamal Neutral 971 - 1,449 1,948 2,147 10.6 10.3 60.0 67.0 16.2 14.5 2.5 2.2 16.8 16.1 0.8 0.7

Visaka Industries Buy 132 166 210 1,158 1,272 8.6 9.5 23.7 32.7 5.6 4.0 0.6 0.5 10.1 12.5 0.4 0.3Transport Corporation of India Buy 244 293 1,858 2,830 3,350 8.8 9.0 14.4 18.3 17.0 13.3 2.6 2.3 15.4 17.1 0.8 0.7

Elecon Engineering Buy 72 87 789 1,452 1,596 14.0 14.7 4.4 6.2 16.4 11.6 1.4 1.2 8.6 11.2 0.8 0.7

Surya Roshni Buy 130 183 571 2,992 3,223 8.3 8.5 14.7 18.3 8.9 7.1 0.8 0.8 9.8 11.0 0.5 0.4

MT Educare Buy 129 169 513 286 366 18.3 17.7 7.7 9.4 16.7 13.7 3.5 3.1 20.2 21.1 1.7 1.3


October 05, 2015

Stock Watch



zOthers

Radico Khaitan Buy 87 112 1,154 1,565 1,687 11.9 12.4 5.4 6.6 16.0 13.2 1.3 1.2 8.0 9.0 1.2 1.2

Garware Wall Ropes Accumulate 351 390 769 875 983 10.4 10.6 23.1 27.8 15.2 12.6 2.2 1.9 14.1 14.8 0.9 0.8

Wonderla Holidays Accumulate 287 322 1,619 206 308 44.0 43.6 9.0 12.9 31.8 22.2 4.4 3.9 13.7 17.8 7.8 5.2

Linc Pen & Plastics Buy 155 185 229 340 371 8.3 8.9 10.8 13.2 14.3 11.7 2.3 2.0 16.0 17.1 0.7 0.6

The Byke Hospitality Accumulate 161 181 647 222 287 20.5 20.5 5.6 7.6 28.6 21.3 5.4 4.4 18.9 20.8 2.9 2.3

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 01, 2015


October 05, 2015

Stock Watch

Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com

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Market OutlookOctober 05, 2015

Documents

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