Market Outlook - web.angelbackoffice.comweb.angelbackoffice.com/Research_ContentManagement/... · ATDIL has been awarded 3 new contracts to supply transformers and shunt reactors

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Market Outlook

August 5, 2015

Dealer’s Diary

Indian markets are expected to open flat with positive bias tracking SGX Nifty.

U.S. stocks closed lower Tuesday, but off the session lows hit when one of the Fed

president indicated that September interest-rate hike is likely unless there is a

significant deterioration in the economy.

FTSE 100 was down as Standard Life shares were lower by 3.3% after it said that its

annuities business suffered from recent pension reforms.

Markets corrected on profit booking post RBI announced its 3rd bio-monthly policy

review. In a volatile trading session, Sensex plunged more than 300 points intraday

and Nifty breached 8500, but managed to cut losses in later part of the session.

Index heavyweights Infosys, Reliance, ITC and HDFC twins dragged the market, but

select banks and metals & mining stocks supported.

News & Result Analysis Alstom T&D bags `232cr orders from Power Grid

Result Review: MM Forgings, JK Tyre Refer detailed news & result analysis on the following page

Markets Today The trend deciding level for the day is 28,068 / 8,510 levels. If NIFTY trades above

this level during the first half-an-hour of trade then we may witness a further rally up

to 28,269 – 28,466 / 8,572 – 8,627 levels. However, if NIFTY trades below

28,068 / 8,510 levels for the first half-an-hour of trade then it may correct towards

27,870 – 27,669 / 8,455 – 8,393 levels.

Indices S2 S1 PIVOT R1 R2

SENSEX 27,669 27,870 28,068 28,269 28,466

NIFTY 8,393 8,455 8,510 8,572 8,627

Net Inflows (August 3, 2015) ` cr Purch Sales Net MTD YTD

FII 4,497 4,067 430 430 141,400

MFs 954 1,036 (81) (81) 57,867

FII Derivatives (August 4, 2015) ` cr Purch Sales Net Open Interest

Index Futures 1,634 1,865 (231) 15,023

Stock Futures 3,932 3,083 849 49,762

Gainers / Losers Gainer Loser

Company Price (`) chg (%) Company Price (`) chg (%)

ADANIENT 94 11.3 SUNTV 353 (5.8)

TORNTPOWER 164 10.1 KAILASH 5 (5.0)

PUNJLLOYD 32 9.1 FSLNIITTECH 460 (4.3)

UNIONBANK 201 8.2 FSL 31 (3.9)

CEATLTD 1,000 7.9 IDEA 165 (3.8)

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

BSE Sensex (0.4) (115) 28,072

Nifty (0.3) (26) 8,517

MID CAP 1.1 126 11,457

SMALL CAP 0.7 80 12,021

BSE HC 0.1 11 17,115

BSE PSU 1.0 80 7,839

BANKEX 0.5 103 21,815

AUTO 1.0 193 19,440

METAL 2.7 231 8,805

OIL & GAS (0.7) (68) 9,784

BSE IT (0.6) (65) 10,949

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

Dow Jones (0.3) (48) 17,551

NASDAQ (0.2) (10) 5,106

FTSE (0.0) (2) 6,687

Nikkei (0.1) (28) 20,520

Hang Sang (0.0) (5) 24,406

Straits Times (0.1) (2) 3,191

Shanghai Com 3.7 134 3,757

Indian ADR Chg (%) (Pts) (Close)

INFY (0.1) (0.0) $16.9

WIT (0.3) (0.0) $12.2

IBN (0.4) (0.0) $10.3

HDB (0.0) (0.0) $62.9

Advances / Declines BSE NSE

Advances 1,626 826

Declines 1,282 677

Unchanged 122 68

Volumes (` cr)

BSE 4,469

NSE 21,978


Market Outlook August 5, 2015

Alstom T&D bags `232cr orders from Power Grid

Alstom T&D India (ATDIL) announced that it has bagged `231.7cr worth of orders from Power Grid Corporation of India Ltd (PGCIL) for the supply of transformers and shunt reactors.

ATDIL has been awarded 3 new contracts to supply transformers and shunt reactors for 765/400kV substation at Agra, U.P and spare units for 765kV transformers and reactors as part of Eastern and Southern Region strengthening schemes.

Products for these 3 contracts would be delivered from Alstom T&D's factory at Vadodara.

At 1QFY2016-end, ATDIL was sitting on an Order Book of `8,100cr, reflecting OB/LTM sales ratio of ~2.0x.

Result Review

MM Forgings (CMP: `693/ TP: `797/ Upside: 15.1%)

For 1QFY2016, the company reported numbers that were below our estimates. The top-line during the quarter de-grew marginally by 0.3% yoy to `124cr. The same was below our estimate of `144cr. The raw material cost declined by 546bp yoy to 39.3% of sales, but the benefits were offset by an increase in employee cost, power costs and other expenses. Employee costs, power costs and other expenses rose by 275bp yoy, 154bp yoy and 176bp yoy to 11.4%, 11.0% and 16.8% of sales, respectively. As a result, the EBITDA margin witnessed a decline of 59bp yoy to 21.6%, which is below our estimate of 22.7%. Consequently, the net profit declined by 2.4% yoy to `13cr vis-à-vis our expectation of `16cr.

At current market price, the stock is trading at 10.4x its FY2017E earnings. We have a Buy rating on the stock with a revised target price of `797 based on a target P/E of 12.0x for FY2017E.

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

Mar (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2016E 563 22.1 62 51.0 23.1 13.6 2.8 7.4 1.6

FY2017E 671 22.9 80 66.5 24.1 10.4 2.3 5.8 1.3

JK Tyres Ltd (CMP: `123/ TP: /Upside:)

JK Tyres Ltd 1QFY2016 results were ahead of estimates. Revenues declined 5% yoy to `1,777cr v/s expectations of `1,857cr. Subdued demand in the truck replacement segment coupled with surge in Chinese imports impacted the topline. However, JKT posted a record multi-year high operating margin of 16.7% which beat our estimates of 14.6%. The margins were boosted by lower raw material costs (softness in both the key raw material viz rubber and crude derivatives). Buoyed by a robust operating performance, the Net profit at `118cr more than doubled on yoy basis and was ahead of our expectations of `111cr. We currently have Neutral rating on the stock and would review estimates post management interaction.

3


Market Outlook August 5, 2015

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2016E 7,774 13.4 398 17.6 23.1 7.0 1.6 5.2 0.7

FY2017E 8,456 12.9 410 18.1 19.6 6.8 1.3 5.1 0.7

Quarterly Bloomberg Brokers Consensus Estimate

Tata Chemicals Ltd (Consol)- August 05, 2015

Particulars (` cr) 1QFY16E 1QFY15 y-o-y (%) 4QFY15 q-o-q (%)

Net sales 4,118 3,803 8.3 3,658 12.6

EBITDA 564 504 12.0 411 37.1

EBITDA margin (%) 13.7 13.2 11.2

Net profit 222 176 26.3 (74) 0.0

Siemens Ltd- August 05, 2015


Net sales 2,438 2,319 5.1 2,589 (5.8)

EBITDA 225 53 325.7 250 (10.1)

EBITDA margin (%) 9.2 2.3 9.7

Net profit 127 13 878.2 162 (21.4)

Canara Bank- August 05, 2015


PAT 585 807 (27.5) 613 (4.5)

Tata Global Beverages Ltd (Consol)- August 06, 2015


Net sales 1,987 1,884 5.4 1,875 6.0

EBITDA 205 201 2.0 188 9.0

EBITDA margin (%) 10.3 10.7 10.0

Net profit 104 97 6.4 4 2,553.8

Economic and Political News RBI holds rate but says open to cuts

US renews GSP benefits for Indian exporters

After auction, only 6 coal blocks resume output

Govt hopes to make Swiss Challenge work for railways

Corporate News

Britannia to ramp up rural distribution, manufacturing Sterlite wants land to set up LCD panel factory Klesch Group drops plans to buy out Tata Steel unit DLF seeks shareholders nod to raise up to `7,500cr

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Market Outlook

August 5, 2015

Top Picks

Large Cap

Company Sector Market Cap

(` Cr) Rating

CMP

(`) Target

(`) Upside

(%)

Axis Bank Financials 137,830 Buy 580 716 23.4

ICICI Bank Financials 182,328 Buy 314 370 17.8

Infosys IT 243,430 Buy 1,060 1,306 23.2

Inox Wind Cap Goods 9,126 Buy 411 505 22.8

LIC Housing Fin. Financials 25,806 Buy 513 590 15.0

Power Grid Power 73,608 Buy 141 170 20.8

TCS IT 491,504 Buy 2,509 3,168 26.3

Tech Mahindra IT 52,158 Buy 542 646 19.1

Yes Bank Financials 35,109 Buy 840 989 17.8

Sun Pharma Pharma 199,740 Accumulate 830 950 14.5

Source: Angel Research, Bloomberg

Mid Cap

Company Sector Market

Cap (` Cr) Rating

CMP

(`) Target

(`) Upside

(%)

Bajaj Electricals Others 2,617 Buy 260 341 31.4

Garware Wall Rope Others 652 Buy 298 390 31.0

Hindustan Media Ven. Media 1,779 Buy 242 292 20.5

MBL Infrastructures Construction 1,118 Buy 270 395 46.3

Mangalam Cements Cement 695 Buy 261 349 34.0

Radico Khaitan Others 1,253 Buy 94 112 18.9

Minda Industries Auto Ancillary 933 Accumulate 588 652 10.8

MT Educare Others 489 Accumulate 123 141 14.9

Setco Automotive Auto Ancillary 682 Accumulate 255 286 12.1

Source: Angel Research, Bloomberg

Date Company

August 5, 2015Tata Chemicals, Automotive Axle, Siemens, Ramco Cements, Canara Bank, GlaxoSmith Con, Marico, Indraprasth Gas, ITD Cementation, Tree House, PTC India

August 6, 2015 Tata Global, Motherson Sumi, Cummins India, Bajaj Electrical, Styrolution, Banco

August 7, 2015Tata Motors, M&M, BHEL, Mangalam Cement, Rural Elec.Corp., Corporation Bank, GSPL, Kirloskar Engines India Ltd, MT Educare

August 8, 2015 Central Bank, UCO Bank, Divi's Lab.

August 9, 2015

August 10, 2015 LMW, J & K Bank, Finolex Cables, Power Grid Corpn, Adani Power, HDIL, Radico Khaitan

August 11, 2015Bosch India, Apollo Tyres, J K Lakshmi Cements, St Bk of India, NMDC, Tata Steel, Prakash Industries, HPCL, Siyaram Silk Mills, Sun Pharma, Reliance Power

August 12, 2015Ashok Leyland, India Cements, IDBI Bank, Coal India, Jindal Steel, Nalco, Bhushan Steel, TVS Srichakra, Cadila Healthcare, Aurobindo Pharma, Anant Raj

August 13, 2015 IOC, Page Industries, Surya Roshni, Tata Power Co., Unitech

August 14, 2015 Amara Raja Batteries, SAIL, Hindalco, BPCL, Elecon Engineering, GIPCL

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Time Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

August 5, 2015 1:25PM Germany PMI Services Value Jul F 53.70 53.70

August 6, 2015 6:00PM US Initial Jobless claims Thousands Aug 1 267.00 272.50

4:30PM UK BOE Announces rates % Ratio Aug 6 0.50 0.50

2:00PM UK Industrial Production (YoY) % Change Jun 2.10 2.20

August 7, 2015 6:00PM US Change in Nonfarm payrolls Thousands Jul 223.00 225.00

6:00PM US Unnemployment rate % Jul 5.30 5.30

August 8, 2015 China Exports YoY% % Change Jul 2.80 (1.40)

August 9, 2015 7:00AM China Consumer Price Index (YoY) % Change Jul 1.40 1.60

August 10, 2015 India Imports YoY% % Change Jul (13.40) --

India Exports YoY% % Change Jul (15.80) --

August 12, 2015 2:00PM UK Jobless claims change % Change Jul 7.00 --

11:00AM China Industrial Production (YoY) % Change Jul 6.80 6.60

5:30PM India Industrial Production YoY % Change Jun 2.70 --

August 14, 2015 2:30PM Euro Zone Euro-Zone CPI (YoY) % Jul F 0.20 --

6:45PM US Industrial Production % Jul 0.23 0.25

12:00PM India Monthly Wholesale Prices YoY% % Change Jul (2.40) --

2:30PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 2Q A 0.40 --

11:30AM Germany GDP nsa (YoY) % Change 2Q P 1.10 --

August 18, 2015 6:00PM US Building permits Thousands Jul 1,337.00 --

6:00PM US Housing Starts Thousands Jul 1,174.00 --

2:00PM UK CPI (YoY) % Change Jul -- --

August 19, 2015 6:00PM US Consumer price index (mom) % Change Jul 0.32 --


August 05, 2015

Market Outlook

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Market Outlook

August 05, 2015

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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


Exhibit 6: Key policy rates

Source: RBI, Angel Research

4.5

6.3

5.0 4.7

7.0 7.5

6.4 6.7 6.7

8.4

6.6

7.5

3.0

4.0

5.0

6.0

7.0

8.0

9.0

1Q

FY13

2Q

FY13

3Q

FY13

4Q

FY13

1Q

FY14

2Q

FY14

3Q

FY14

4Q

FY14

1Q

FY15

2Q

FY15

3Q

FY15

4Q

FY15

(%)

0.9 0.5

2.6

(2.7)

5.2

3.6 2.8

4.8

2.5 3.4

2.7

(4.0)

(3.0)

(2.0)

(1.0)

-

1.0

2.0

3.0

4.0

5.0

6.0

Jul-14

Aug-1

4

Sep-1

4

Oct

-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

Mar-

15

Apr-

15

May-

15

(%)

6.8 7.4

7.0

5.6

4.6

3.3

4.3

5.2 5.4 5.3 4.9 5.0

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Jun-1

4

Jul-14

Aug-1

4

Sep-1

4

Oct

-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

Mar-

15

Apr-

15

May-

15

(%)

47.0

48.0

49.0

50.0

51.0

52.0

53.0

54.0

55.0 M

ay-

14

Jun-1

4

Jul-14

Aug-1

4

Sep-1

4

Oct

-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

Mar-

15

Apr-

15

May-

15

Jun-1

5

Mfg. PMI Services PMI

(30.0)

(20.0)

(10.0)

0.0

10.0

20.0

30.0

Jun-1

4

Jul-14

Aug-1

4

Sep-1

4

Oct

-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

Mar-

15

Apr-

15

May-

15

Exports yoy growth Imports yoy growth(%)

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Jul-14

Aug-1

4

Sep-1

4

Oct

-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

Mar-

15

Apr-

15

May-

15

Jun-1

5

Jul-15

Repo rate Reverse Repo rate CRR (%)

h

2

Market Outlook

August 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


(1.6) (1.9)

5.3

7.0

2.1

4.7

5.6

3.0 2.4 2.7

1.1 0.7

(0.9)

(3.0)

(2.0)

(1.0)

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Bra

zil

Russ

ia

India

Chin

a

South

Afr

ica

Indonesi

a

Mala

ysia

Thailand

UK

USA

Germ

any

Fra

nce

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

Bra

zil

Russ

ia

India

Chin

a

South

Afr

ica

Indonesi

a

Mala

ysia

Thailand

UK

USA

Germ

any

Fra

nce

Japan

(%)

11

.8

5.9

17

.7

14

.9

17

.6

14

.4

16

.2

12

.7

15

.7

17

.0

14

.0

16

.2

16

.0

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Bra

zil

Russ

ia

India

Chin

a

South

A

fric

a

Indonesi

a

Mala

ysia

Thailand

UK

USA

Germ

any

Fra

nce

Japan

(x)

h

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Market Outlook

August 05, 2015


Exhibit 4: Relative performance of indices across globe

Returns (%)

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

Brazil Bovespa 50,058 (5.7) (12.7) (10.3)

Russia Micex 1,674 2.6 (0.8) 21.8

India Nifty 8,517 0.4 5.2 8.8

China Shanghai Composite 3,757 (0.6) (11.3) 72.3

South Africa Top 40 46,918 1.2 (2.9) 2.0

Mexico Mexbol 45,178 0.2 0.7 1.3

Indonesia LQ45 811 (3.0) (10.4) (6.7)

Malaysia KLCI 1,724 (0.5) (5.2) (7.7)

Thailand SET 50 941 (4.0) (7.0) (7.7)

USA Dow Jones 17,551 (1.0) (2.9) 6.8

UK FTSE 6,687 1.5 (3.5) 0.8

Japan Nikkei 20,520 0.2 5.3 32.5

Germany DAX 11,456 3.6 1.1 25.1

France CAC 5,112 6.3 2.6 23.2


Company Name Reco CMP Target Mkt Cap Sales ( ₹cr ) OPM(%) EPS (₹) PER(x) P/BV(x) RoE(%) EV/Sales(x)

( ₹ ) Price ( ₹) ( ₹ cr ) FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E

Agri / Agri Chemical

Rallis Neutral 220 - 4,279 2,075 2,394 14.4 14.4 9.5 11.0 23.2 20.0 4.6 4.0 21.1 21.3 2.1 1.8

United Phosphorus Neutral 561 - 24,025 13,698 15,752 17.6 17.6 32.1 38.5 17.5 14.6 3.4 2.8 21.4 21.3 1.9 1.5

Auto & Auto Ancillary

Ashok Leyland Neutral 88 - 25,044 17,394 20,318 9.6 10.7 2.8 4.4 31.4 20.0 4.4 4.1 14.3 20.4 1.4 1.2

Bajaj Auto Neutral 2,511 - 72,647 23,842 27,264 19.8 19.6 128.4 144.4 19.6 17.4 6.0 5.1 30.5 29.5 2.6 2.3

Eicher Motors Accumulate 20,178 21,843 54,768 11,681 15,550 15.3 16.9 358.5 564.3 56.3 35.8 16.9 12.6 29.8 34.9 4.6 3.4

Hero Motocorp Neutral 2,624 - 52,403 28,500 33,028 13.8 14.1 144.2 166.3 18.2 15.8 6.7 5.7 36.7 36.0 1.7 1.4

L G Balakrishnan & Bros Neutral 470 - 738 1,254 1,394 11.6 11.8 35.9 41.7 13.1 11.3 1.8 1.6 13.5 13.8 0.7 0.6

Mahindra and Mahindra Neutral 1,363 - 84,646 41,078 46,473 11.5 12.0 51.4 62.7 26.5 21.7 3.9 3.5 14.7 15.9 1.8 1.5

Maruti Accumulate 4,438 4,735 134,066 58,102 68,587 16.7 16.9 182.0 225.5 24.4 19.7 4.9 4.1 19.9 21.0 2.1 1.7

Minda Industries Accumulate 588 652 933 2,500 2,889 7.6 8.3 39.4 54.3 14.9 10.8 2.1 1.8 14.1 16.3 0.5 0.4

Rane Brake Lining Accumulate 335 366 265 454 511 11.1 11.4 23.8 28.1 14.1 11.9 2.0 1.8 14.2 15.3 0.7 0.7

Setco Automotive Accumulate 255 286 682 718 862 13.3 14.3 13.4 19.0 19.0 13.4 3.0 2.5 15.4 18.5 1.2 1.1

Tata Motors Accumulate 381 425 109,988 258,457 276,275 13.3 13.7 29.3 35.2 13.0 10.8 1.4 1.3 11.4 12.2 0.6 0.6

TVS Motor Accumulate 233 255 11,086 11,839 13,985 7.0 8.0 10.8 15.9 21.6 14.7 5.5 4.4 25.5 29.7 0.9 0.7

Amara Raja Batteries Neutral 973 - 16,623 5,355 6,641 17.4 17.8 31.8 40.9 30.6 23.8 7.7 6.1 25.2 25.5 3.1 2.4

Exide Industries Neutral 156 - 13,222 7,363 8,247 13.7 14.5 6.6 7.7 23.6 20.2 3.0 2.7 12.6 13.3 1.5 1.4

Apollo Tyres Neutral 217 - 11,043 12,866 13,892 15.7 15.4 20.1 19.9 10.8 10.9 1.7 1.5 15.8 13.6 0.9 0.9

Ceat Neutral 1,000 - 4,047 6,041 6,770 14.3 13.6 101.5 114.5 9.9 8.7 2.0 1.6 20.0 18.8 0.8 0.7

JK Tyres Neutral 123 - 2,788 7,774 8,456 13.3 12.9 17.3 18.1 7.1 6.8 1.6 1.3 22.8 19.7 0.7 0.7

Swaraj Engines Neutral 982 - 1,220 593 677 14.5 14.8 51.2 60.8 19.2 16.2 4.5 4.0 23.3 24.8 1.9 1.6

Subros Neutral 97 - 582 1,268 1,488 11.6 11.9 3.7 6.6 26.2 14.7 1.8 1.6 6.8 11.4 0.8 0.6

Indag Rubber Buy 200 247 526 283 329 17.0 17.2 13.0 15.4 15.5 13.0 3.4 2.8 21.8 21.6 1.6 1.3

Capital Goods

ACE Accumulate 48 54 473 660 839 4.7 8.2 1.0 3.9 47.9 12.3 1.5 1.3 3.2 11.3 0.9 0.7

BEML Neutral 1,554 - 6,471 3,277 4,006 6.0 8.9 29.2 64.3 53.2 24.2 3.0 2.7 5.7 11.7 2.1 1.6

BGR Energy Neutral 139 - 1,002 3,615 3,181 9.5 9.4 16.7 12.4 8.3 11.2 0.8 0.8 10.0 7.0 0.7 0.9

BHEL Neutral 282 - 69,022 33,722 35,272 10.8 11.7 10.5 14.2 26.9 19.9 2.0 1.9 7.0 9.0 2.1 2.0

Blue Star Neutral 372 - 3,344 3,649 4,209 5.0 5.9 9.2 14.7 40.6 25.2 7.3 6.9 9.1 17.5 1.0 0.9

Crompton Greaves Accumulate 185 204 11,576 13,484 14,687 4.9 6.2 4.5 7.1 41.0 26.0 2.9 2.7 7.2 10.8 0.9 0.8

Inox Wind Buy 411 505 9,126 4,980 5,943 17.0 17.5 26.6 31.6 15.5 13.0 4.6 3.4 35.0 30.0 2.0 1.6


August 05, 2015

Market Outlook

Stock Watch



Capital Goods

KEC International Neutral 145 - 3,735 8,791 9,716 6.1 6.8 5.4 8.2 26.9 17.7 2.7 2.5 10.0 14.0 0.6 0.6

Thermax Neutral 1,029 - 12,258 6,413 7,525 7.4 8.5 30.5 39.3 33.7 26.2 5.2 4.5 15.0 17.0 1.9 1.6

Cement

ACC Accumulate 1,376 1,548 25,832 11,856 14,092 14.5 17.8 47.6 76.2 28.9 18.1 3.0 2.7 10.6 15.7 2.0 1.7

Ambuja Cements Neutral 229 - 35,531 10,930 12,022 20.7 22.2 8.7 10.7 26.3 21.4 3.3 3.2 13.0 15.2 2.8 2.5

India Cements Buy 91 132 2,808 4,716 5,133 14.9 15.8 1.0 4.5 91.4 20.3 0.9 0.9 1.0 4.5 0.9 0.8

JK Cement Buy 666 778 4,655 4,061 4,748 16.2 17.7 24.5 42.9 27.2 15.5 2.6 2.3 10.0 15.9 1.6 1.3

J K Lakshmi Cement Buy 361 443 4,244 3,004 3,618 17.6 19.9 13.9 27.2 25.9 13.3 2.9 2.5 11.8 20.5 1.8 1.5

Mangalam Cements Buy 261 349 695 1,111 1,336 12.2 15.1 16.3 34.6 16.0 7.5 1.3 1.2 8.2 16.0 0.9 0.7

Orient Cement Neutral 183 - 3,754 2,039 2,573 22.7 24.5 9.3 13.3 19.7 13.8 3.4 2.9 18.3 22.6 2.5 1.9

Ramco Cements Neutral 359 - 8,539 4,036 4,545 20.8 21.3 15.1 18.8 23.8 19.1 2.9 2.6 12.9 14.3 2.6 2.3

Shree Cement^ Neutral 11,448 - 39,882 7,150 8,742 26.7 28.6 228.0 345.5 50.2 33.1 7.4 6.2 15.7 20.3 5.3 4.3

UltraTech Cement Neutral 3,143 - 86,253 27,562 31,548 20.3 22.0 111.0 145.0 28.3 21.7 4.0 3.4 15.1 17.0 3.2 2.7

Construction

ITNL Neutral 145 - 3,586 7,589 8,021 34.0 35.9 16.0 19.0 9.1 7.7 0.6 0.5 6.5 6.7 3.6 3.8

KNR Constructions Neutral 562 - 1,580 915 1,479 14.3 13.9 20.3 37.2 27.7 15.1 2.5 2.2 9.6 15.6 1.9 1.2

Larsen & Toubro Accumulate 1,774 2,013 165,044 68,920 82,446 10.9 11.5 57.0 73.0 31.1 24.3 2.8 2.7 13.6 15.5 2.6 2.2

Gujarat Pipavav Port Neutral 220 - 10,657 793 694 53.0 50.9 9.0 8.0 24.5 27.6 5.3 4.3 25.9 18.4 13.1 14.9

MBL Infrastructures Buy 270 395 1,118 2,507 2,986 12.4 14.4 21.5 20.5 12.5 13.2 1.5 1.4 12.6 12.7 1.2 1.1

PNC Infratech Accumulate 461 445 2,365 1,719 2,003 13.0 13.5 21.0 28.0 22.0 16.5 1.9 1.7 11.0 10.9 1.5 1.3

Financials

Allahabad Bank Neutral 94 - 5,394 8,859 9,817 3.0 3.0 23.7 30.1 4.0 3.1 0.5 0.4 10.6 12.3 - -

Axis Bank Buy 580 716 137,830 26,522 31,625 3.6 3.6 36.2 45.4 16.0 12.8 3.1 2.7 18.2 19.6 - -

Bank of Baroda Neutral 191 - 42,251 18,934 21,374 2.0 2.0 13.2 15.1 14.5 12.7 1.1 1.0 7.1 7.7 - -

Bank of India Neutral 173 - 11,483 17,402 20,003 2.0 2.1 40.3 50.7 4.3 3.4 0.4 0.4 9.0 10.4 - -

Canara Bank Neutral 309 - 15,940 15,805 17,745 2.0 2.2 64.3 73.5 4.8 4.2 0.5 0.5 10.8 11.3 - -

Dena Bank Neutral 46 - 2,553 3,580 4,040 2.1 2.2 8.4 10.9 5.5 4.2 0.5 0.4 6.8 8.4 - -

Federal Bank Neutral 68 - 11,584 3,522 4,045 3.2 3.2 12.2 14.1 5.5 4.8 0.7 0.6 12.9 13.4 - -

HDFC Neutral 1,302 - 205,253 11,198 13,321 3.5 3.5 45.1 53.7 28.9 24.2 6.0 5.3 27.2 28.2 - -

HDFC Bank Buy 1,088 1,255 273,597 38,629 47,500 4.5 4.7 52.6 66.4 20.7 16.4 3.8 3.2 19.6 21.2 - -

ICICI Bank Buy 314 370 182,328 36,037 41,647 3.5 3.6 22.9 26.7 13.7 11.8 2.3 2.0 15.7 15.9 - -

IDBI Bank Neutral 68 - 10,923 9,806 11,371 1.7 1.9 10.0 16.3 6.9 4.2 0.5 0.4 6.8 10.4 - -


August 05, 2015

Market Outlook

Stock Watch



Financials

Indian Bank Neutral 154 - 7,384 6,454 7,321 2.5 2.6 26.4 33.3 5.8 4.6 0.5 0.4 8.1 9.6 - -

LIC Housing Finance Buy 513 590 25,884 2,934 3,511 2.3 2.3 30.9 36.8 16.6 13.9 2.7 2.3 16.8 17.5 - -

Oriental Bank Neutral 182 - 5,462 7,930 8,852 2.5 2.5 51.8 57.1 3.5 3.2 0.4 0.4 9.3 9.5 - -

Punjab Natl.Bank Neutral 159 - 29,487 24,160 27,777 2.9 3.0 18.5 24.6 8.6 6.5 0.8 0.7 8.8 10.8 - -

South Ind.Bank Neutral 23 - 3,159 1,999 2,249 2.4 2.4 3.5 4.0 6.7 5.8 0.8 0.8 12.6 13.1 - -

St Bk of India Neutral 288 - 218,058 86,900 100,550 3.1 3.1 22.1 27.7 13.1 10.4 1.6 1.4 12.7 14.3 - -

Union Bank Neutral 201 - 12,808 12,995 14,782 2.4 2.4 32.3 40.9 6.2 4.9 0.8 0.6 10.7 12.3 - -

Vijaya Bank Neutral 41 - 3,548 3,474 3,932 1.8 1.9 5.9 7.2 7.0 5.7 0.6 0.5 8.1 9.3 - -

Yes Bank Buy 840 989 35,109 7,006 8,825 3.1 3.3 61.4 77.1 13.7 10.9 2.5 2.1 20.1 21.3 - -

FMCG

Asian Paints Neutral 905 - 86,783 16,553 19,160 16.0 16.2 17.7 21.5 51.2 42.1 13.6 12.2 29.4 31.2 5.1 4.4

Britannia Neutral 3,177 - 38,121 8,065 9,395 9.6 10.2 47.2 65.5 67.3 48.5 22.4 21.1 38.3 41.2 4.6 3.9

Colgate Neutral 1,986 - 27,012 4,836 5,490 19.5 19.7 48.5 53.2 41.0 37.3 30.0 26.1 99.8 97.5 5.5 4.8

Dabur India Neutral 292 - 51,290 9,370 10,265 17.1 17.2 7.3 8.1 39.8 36.0 12.0 9.8 33.7 30.6 5.4 4.9

GlaxoSmith Con* Neutral 6,206 - 26,100 4,919 5,742 17.2 17.4 168.3 191.2 36.9 32.5 10.5 8.9 28.8 28.9 4.9 4.1

Godrej Consumer Neutral 1,335 - 45,470 10,168 12,886 16.1 16.1 32.1 38.4 41.6 34.8 8.5 7.8 19.7 21.0 4.6 3.6

HUL Neutral 909 - 196,626 34,940 38,957 17.5 17.7 20.8 24.7 43.7 36.8 48.6 38.8 110.5 114.2 5.4 4.8

ITC Buy 329 409 263,816 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 442 - 28,526 6,551 7,766 15.7 16.0 10.4 12.5 42.6 35.4 12.4 10.3 33.2 32.4 4.3 3.6

Nestle* Neutral 6,353 - 61,256 11,291 12,847 22.2 22.3 158.9 184.6 40.0 34.4 20.9 18.8 55.0 57.3 5.3 4.6

Tata Global Accumulate 143 152 9,037 8,635 9,072 9.8 9.9 6.5 7.6 22.1 18.9 2.2 2.1 6.8 7.4 1.0 0.9

IT

HCL Tech^ Buy 935 1,100 131,389 41,535 46,519 24.0 23.4 56.6 61.1 16.5 15.3 3.4 2.7 20.8 17.7 3.0 2.6

Infosys Buy 1,060 1,306 243,430 60,250 66,999 28.0 28.0 58.3 63.7 18.2 16.6 3.8 3.3 20.9 19.7 3.4 2.9

TCS Buy 2,509 3,168 491,504 108,420 123,559 28.8 28.7 127.2 143.9 19.7 17.4 7.9 7.3 39.9 41.8 4.1 3.6

Tech Mahindra Buy 542 646 52,158 27,281 31,373 17.3 18.4 30.8 38.0 17.6 14.3 3.6 3.0 20.3 20.9 1.7 1.4

Wipro Buy 558 753 137,846 54,050 61,617 23.7 23.8 39.4 44.1 14.2 12.7 2.8 2.5 19.9 18.8 2.1 1.7

Media

D B Corp Accumulate 329 356 6,045 2,241 2,495 27.8 27.9 21.8 25.6 15.1 12.9 3.9 3.5 26.7 28.5 2.6 2.4

HT Media Neutral 84 - 1,949 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

Jagran Prakashan Accumulate 137 156 4,490 1,939 2,122 26.0 26.0 8.3 9.2 16.6 14.9 2.8 2.6 17.5 17.1 2.3 2.1

Sun TV Network Neutral 353 - 13,901 2,779 3,196 70.2 70.5 22.8 27.3 15.5 12.9 3.8 3.5 26.7 28.3 4.8 4.1


August 05, 2015

Market Outlook

Stock Watch



Media

Hindustan Media Ventures Buy 242 292 1,779 920 1,031 20.0 20.0 19.2 20.9 12.6 11.6 2.1 1.8 16.4 15.3 1.5 1.3

Metals & Mining

Coal India Neutral 443 - 279,720 77,595 89,628 22.9 24.4 27.6 30.0 16.1 14.8 6.9 6.9 33.9 33.2 2.9 2.5

Hind. Zinc Neutral 159 - 67,077 15,546 16,821 47.5 49.0 19.7 20.3 8.0 7.8 1.4 1.2 17.2 16.6 2.1 1.6

Hindalco Neutral 109 - 22,570 112,328 119,817 7.7 7.9 16.3 20.1 6.7 5.5 0.5 0.5 8.0 8.5 0.7 0.6

JSW Steel Neutral 881 - 21,290 48,125 53,595 18.8 21.0 46.9 97.5 18.8 9.0 0.9 0.8 4.4 9.5 1.3 1.1

NMDC Neutral 102 - 40,361 12,544 13,330 59.5 59.7 16.3 16.5 6.3 6.2 1.1 1.0 5.1 9.9 2.0 1.9

SAIL Neutral 59 - 24,388 56,365 63,383 6.9 8.0 7.1 8.2 8.3 7.2 0.5 0.5 7.0 7.1 1.0 0.9

Vedanta Neutral 127 - 37,785 81,842 88,430 30.6 32.8 20.2 25.7 6.3 5.0 0.5 0.4 7.5 8.5 0.8 0.6

Tata Steel Neutral 256 - 24,902 136,805 149,228 11.3 11.9 26.4 36.8 9.7 7.0 0.8 0.7 6.0 8.0 0.7 0.7

Oil & Gas

Cairn India Neutral 166 - 31,179 12,617 14,513 33.7 40.0 25.5 27.7 6.5 6.0 0.5 0.5 7.4 7.7 1.1 0.9

GAIL Neutral 345 - 43,775 75,595 85,554 8.6 8.0 31.8 36.1 10.8 9.6 1.2 1.1 10.7 11.4 0.7 0.6

ONGC Neutral 267 - 228,346 174,773 192,517 22.7 24.8 34.6 38.2 7.7 7.0 1.1 1.0 14.2 14.9 1.4 1.2

Petronet LNG Neutral 190 - 14,280 45,759 49,386 3.7 4.0 12.6 14.9 15.1 12.8 2.3 2.0 16.1 16.7 0.4 0.3

Reliance Industries Accumulate 988 1,050 319,916 339,083 384,014 7.8 9.5 75.7 94.5 13.1 10.5 1.3 1.2 10.7 12.2 1.3 1.1

Pharmaceuticals

Alembic Pharma Neutral 738 - 13,919 2,405 2,859 19.9 20.4 17.7 22.0 41.7 33.6 12.0 9.1 32.6 30.9 5.8 4.8

Aurobindo Pharma Accumulate 754 824 44,016 14,435 16,600 22.6 22.6 36.1 41.2 20.9 18.3 6.2 4.7 34.5 29.3 3.4 2.9

Aventis* Neutral 4,107 - 9,459 2,156 2,455 15.1 16.8 109.7 133.9 37.4 30.7 5.1 4.2 18.4 22.5 4.1 3.4

Cadila Healthcare Neutral 1,844 - 37,746 10,224 11,840 19.7 20.0 69.8 81.0 26.4 22.8 7.0 5.6 26.8 25.3 3.8 3.2

Cipla Neutral 710 - 56,988 14,051 16,515 18.9 18.7 25.1 28.9 28.3 24.6 4.5 3.9 17.2 16.9 4.1 3.4

Dr Reddy's Neutral 4,166 - 71,027 17,443 20,296 22.3 22.4 156.7 180.1 26.6 23.1 5.3 4.4 21.8 20.8 4.0 3.4

Dishman Pharma Buy 200 280 1,613 1,716 1,888 20.2 20.2 16.3 21.6 12.3 9.3 1.2 1.0 9.7 11.7 1.1 0.9

GSK Pharma* Neutral 3,682 - 31,189 2,818 3,044 18.9 18.9 56.2 58.6 65.5 62.8 18.6 20.1 27.1 30.7 10.6 9.9

Indoco Remedies Neutral 329 - 3,029 1,088 1,262 18.2 18.2 13.1 15.5 25.1 21.2 4.9 4.1 21.2 21.1 2.9 2.5

Ipca labs Neutral 727 - 9,171 3,533 4,109 18.6 19.6 28.2 34.8 25.8 20.9 3.6 3.1 15.0 15.9 2.9 2.4

Lupin Neutral 1,644 - 73,957 14,864 17,244 26.9 26.9 62.1 71.1 26.5 23.1 6.4 5.1 27.4 24.6 4.7 3.9

Sun Pharma Accumulate 830 950 199,740 27,839 33,542 27.7 29.7 18.9 26.9 43.9 30.9 4.0 3.5 13.0 14.6 6.6 5.1

Power

Tata Power Neutral 70 - 18,905 38,302 38,404 14.1 13.1 5.1 6.0 13.6 11.7 1.3 1.2 9.2 10.3 1.4 1.4

NTPC Neutral 135 - 111,355 89,067 98,329 15.9 16.5 12.1 13.1 11.2 10.3 1.2 1.2 11.0 11.6 2.3 2.2

Power Grid Buy 141 170 73,608 19,986 22,702 86.2 86.3 11.1 12.7 12.7 11.1 1.7 1.5 14.4 14.7 8.8 8.2


August 05, 2015

Market Outlook

Stock Watch



Telecom

Bharti Airtel Neutral 414 - 165,372 101,748 109,191 32.1 31.7 12.0 12.5 34.5 33.1 2.4 2.2 6.9 6.7 2.3 2.1

Idea Cellular Neutral 165 - 59,199 34,282 36,941 32.0 31.5 5.9 6.2 27.9 26.5 2.6 2.3 9.9 9.3 2.3 2.2

zOthers

Abbott India Neutral 4,683 - 9,950 2,713 3,141 13.7 13.5 127.8 145.7 36.6 32.1 8.6 7.0 25.9 23.9 3.4 2.8

Bajaj Electricals Buy 260 341 2,617 4,719 5,287 5.2 5.8 8.6 12.7 30.3 20.5 3.5 3.0 11.4 14.8 0.6 0.5

Finolex Cables Neutral 253 - 3,862 2,728 3,036 10.8 11.0 14.4 16.8 17.5 15.1 2.7 2.3 15.2 15.3 1.2 1.0

Goodyear India* Neutral 643 - 1,482 1,536 1,683 9.6 10.0 41.8 48.0 15.4 13.4 2.6 2.3 18.2 18.3 0.7 0.6

Hitachi Neutral 1,407 - 3,825 1,806 2,112 9.0 9.2 28.6 29.1 49.2 48.4 12.2 9.9 28.1 22.6 2.2 1.9

Jyothy Laboratories Neutral 296 - 5,354 1,620 1,847 11.5 11.5 7.3 8.5 40.6 34.9 5.2 4.9 13.3 14.4 3.2 2.7

MRF Neutral 45,669 - 19,369 20,727 14,841 19.3 18.6 4,905.8 3,351.9 9.3 13.6 3.0 2.4 37.6 19.6 0.9 1.2

Page Industries Neutral 14,263 - 15,909 1,929 2,450 19.8 20.1 229.9 299.0 62.0 47.7 27.4 19.0 52.1 47.1 8.3 6.5

Relaxo Footwears Neutral 574 - 6,894 1,767 2,152 12.3 12.5 19.3 25.1 29.9 22.9 7.3 5.6 27.7 27.8 4.0 3.2

Siyaram Silk Mills Neutral 1,244 - 1,166 1,653 1,873 11.7 12.2 99.3 122.1 12.5 10.2 2.3 1.9 19.5 20.2 0.9 0.8

Styrolution ABS India* Neutral 835 - 1,468 1,271 1,440 8.6 9.2 32.0 41.1 26.1 20.3 2.7 2.4 10.7 12.4 1.1 1.0

Tree House Accumulate 399 433 1,689 259 324 56.8 56.8 17.0 21.7 23.5 18.4 2.4 2.1 10.1 11.5 6.4 5.3

TVS Srichakra Neutral 2,999 - 2,296 2,112 2,389 11.9 12.1 168.5 202.5 17.8 14.8 6.1 4.6 39.6 35.5 1.2 1.0

HSIL Buy 313 434 2,265 2,085 2,436 18.5 18.6 21.7 28.9 14.5 10.8 1.5 1.3 10.0 12.1 1.2 1.0Kirloskar Engines India Ltd Neutral 327 - 4,730 2,779 3,314 10.3 11.9 12.0 17.5 27.3 18.7 3.3 3.0 12.5 16.7 1.4 1.1

M M Forgings Accumulate 693 783 836 586 671 22.3 22.9 53.4 65.2 13.0 10.6 2.8 2.2 24.1 23.5 1.6 1.3

Banco Products (India) Neutral 125 - 893 1,196 1,370 9.7 11.8 9.4 14.3 13.4 8.8 1.3 1.2 10.4 14.5 0.7 0.6

Competent Automobiles Neutral 224 - 138 1,007 1,114 3.1 3.1 23.7 28.2 9.5 7.9 1.3 1.2 13.9 14.6 0.1 0.1

Nilkamal Neutral 976 - 1,456 1,947 2,131 8.1 8.3 35.7 45.9 27.4 21.3 2.7 2.4 10.3 12.1 0.8 0.7

Visaka Industries Neutral 166 - 264 1,158 1,272 8.6 9.5 23.7 32.7 7.0 5.1 0.7 0.6 10.1 12.5 0.4 0.3Transport Corporation of India Accumulate 270 293 2,047 2,830 3,350 8.8 9.0 14.4 18.3 18.8 14.8 2.9 2.5 15.4 17.1 0.8 0.7

Elecon Engineering Neutral 89 - 968 1,452 1,596 13.7 14.7 4.2 6.2 21.4 14.3 1.7 1.5 8.1 11.2 1.0 0.8

Surya Roshni Neutral 150 - 656 2,992 3,223 8.4 8.7 15.2 19.3 9.8 7.8 1.0 0.9 10.1 11.5 0.5 0.5

MT Educare Accumulate 123 141 489 275 355 18.3 17.3 7.4 8.8 16.6 13.9 3.3 2.9 20.2 21.1 1.7 1.3

Radico Khaitan Buy 94 112 1,253 1,565 1,687 11.9 12.4 5.4 6.6 17.4 14.3 1.4 1.3 8.0 9.0 1.3 1.2

Garware Wall Ropes Buy 298 390 652 875 983 10.4 10.6 23.1 27.8 12.9 10.7 1.8 1.6 14.1 14.8 0.8 0.6

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 04, 2015


August 05, 2015

Market Outlook

Stock Watch

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

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Market OutlookAugust 05, 2015

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