1. Art and Diseño

Market Outlook
February 02, 2015
Dealer’s Diary
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open negative, tracking SGX Nifty and their Asian
peers.
BSE Sensex
(1.7)
(499)
29,183
Nifty
(1.6)
(143)
8,809
US markets ended in red, on concerns of weak Q4 U.S. GDP data (reported 2.6%
vs. expectations of 3.3%) and possible impact of Europe’s instability on the U.S.
corporates.
MID CAP
(0.3)
(32)
10,739
SMALL CAP
(0.4)
(49)
11,329
BSE HC
(0.5)
(83)
15,667
BSE PSU
(1.7)
(139)
8,205
BANKEX
(3.1)
(738)
22,716
AUTO
(1.2)
(245)
19,986
METAL
(0.8)
(86)
10,190
OIL & GAS
(0.6)
(65)
10,143
European markets too closed in red. The selling pressure across markets was seen
(1) after ECB announced their Euro 60 bn/ p.m. of bond buying programme, and
(2) negative commentary by Greece’s FM that Greece would not co-operate with
EU and IMF.
NIFTY after touching new highs, witnessed sharp selling, due to weak earnings
reported by PSU Banks and negative global cues. BANKEX was down 3.1%.
BSE IT
News Analysis



Sun Pharmaceutical wins U.S. approval to buy Ranbaxy
Result Review: HCL Tech., Indoco Remedies, Tech Mahindra, Exide Industries.
Result Preview: Subros.
0.2
22
11,179
Chg (%)
(Pts)
(Close)
Dow Jones
(1.4)
(252)
17,165
NASDAQ
(1.0)
(48)
4,635
FTSE
(0.9)
(61)
6,749
0.4
68
17,674
Global Indices
Nikkei
Refer detailed news analysis on the following page
Hang Sang
(0.4)
(89)
24,507
Markets Today
Straits Times
(0.8)
(28)
3,391
The trend deciding level for the day is 29,366 / 8,860 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 29,661 – 30,140/ 8,945 – 9,082 levels. However, if NIFTY trades below
29,366/ 8,860 levels for the first half-an-hour of trade then it may correct towards
28,888 – 28,592 / 8,724 – 8,639 levels.
Shanghai Com
(1.6)
(52)
3,210
Chg (%)
(Pts)
(Close)
INFY
(1.6)
(0.5)
$34.1
Indian ADR
WIT
(1.8)
(0.2)
$12.9
Indices
S2
S1
PIVOT
R1
R2
IBN
(5.3)
(0.7)
$12.0
SENSEX
28,592
28,888
29,366
29,661
30,140
HDB
(5.0)
(3.0)
$57.0
NIFTY
8,639
8,724
8,860
8,945
9,082
Advances / Declines
Net Inflows (Jan 29, 2015)
` cr
Purch
Sales
Net
MTD
YTD
FII
8,810
6,984
1,826
12,364
109,714
969
1,618
(649)
271
30,609
MFs
` cr
Purch
Sales
Net
Open Interest
Index Futures
2,091
2,019
72
22,761
Stock Futures
3,227
4,835
(1,608)
57,404
Gainers / Losers
Gainer
chg (%)
Price (`)
chg (%)
110
14.1
BANKBARODA
193
(11.1)
19
11.6
CANBK
443
(5.6)
GMRINFRA
JPASSOCIAT
HCLTECH
Loser
Price (`)
HDIL
Company
29
9.2
ORIENTBANK
266
(5.4)
1,794
9.0
SBIN
310
(5.1)
630
7.8
ICICIBANK
361
(5.0)
ADANIENT
www.angelbroking.com
NSE
Advances
1,198
579
Declines
1,678
917
113
76
Unchanged
Volumes (` cr)
FII Derivatives (Jan 30, 2015)
Company
BSE
BSE
4,050
NSE
24,551
Market Outlook
February 02, 2015
Sun Pharmaceutical wins U.S. approval to buy Ranbaxy
India's Sun Pharmaceutical Industries Ltd has won U.S. approval to buy Ranbaxy
Laboratories Ltd on condition that it sell its interest in a generic antibacterial
medicine. The FTC, whose job is to ensure that anti-monopoly laws are enforced,
did not weigh in on the safety issue but said it would allow the transaction if
Ranbaxy sold its interests in generic minocycline tablets and capsules to generic
maker Torrent Pharmaceuticals Ltd, which is also based in India. The medicine is
commonly used to treat pneumonia, urinary tract infections and acne. This is
unlikely to have a greater impact on the companies’ financials. We maintain a
neutral stance on both the stocks.
Result Review
HCL Technologies (CMP: `1,646/ TP: `1,968/ Upside: 19.6%)
HCL Technologies announced numbers 2QFY2015 numbers, ahead of
expectations, mainly on the sales front. Company posted revenue of US$1,491mn
V/s US$1,443mn expected, up 4.0% qoq. In Constant Currency (CC), terms the
revenue grew by 6.2% qoq. In rupee terms, the revenue posted a growth of 6.3%
qoq to `9,283cr V/s `8,941cr, expected.
The sales growth was broad based, in terms of geography- the Americas, Europe
and ROW grew by 6.0% qoq , 7.2% qoq and 4.3% qoq CC respectively, driven by
Engineering and R&D Services which grew qoq CC at 12.6%, Infrastructure
Services at 6.2% qoq CC, Business Services at 4.5% qoq CC and Application
Services at 3.8% qoq CC. Across verticals it was led by Life sciences & Healthcare
at 19.3% qoq CC, Retail & CPG at 8.6% qoq CC, Public Services at 7.9% qoq CC,
Manufacturing at 7.3% qoq CC, Telecommunications, Media, Publishing &
Entertainment at 2.0% qoq CC and Financial Services at 1.6% qoq CC. Overall
growth during the quarter was driven by the, new client , which accounted for the
4.9% , while the existing business accounted for 95.1% V/s 3.8% by new client and
96.2% existing business respectively in 1QFY2015.
On Operating front, EBITDA margins came in almost flat at 25.0% V/s 25.1%
expected a qoq dip of 10bps. The utilization levels, during the quarter came in at
82.9% V/s 82.7% in 1QFY2015, while attrition rate came in 6.7% in 2QFY2015
V/s 5.9% in 1QFY2015. Thus, PAT came in at `1,915cr V/s `1,912cr, up 2.3%
qoq.
In terms, of client addition, the company added 1 additional client in the US$
50mn+, 2 in the US$ 40mn+, 2 in the US$20mn+ and 6 in the US$10mn+. The
major client additional happened in the US$1-5mn bracket. Board recommends
issue of Bonus shares in the ratio of 1:1. We maintain our buy rating on the stock
with a price target of `1,968.
www.angelbroking.com
Y/E
Sales OPM
March
(` cr)
PAT
EV/EBITDA
EV/Sales
(x)
(x)
(x)
(x)
91.9 24.6 19.7
4.9
13.3
3.1
7,700 109.0 23.8 16.5
3.9
10.9
2.6
(%)
(` cr)
FY2015E
36,528 23.3
6,280
FY2016E
41,535 24.0
EPS ROE
(`)
(%)
P/E P/BV
Market Outlook
February 02, 2015
Indoco Remedies (CMP: `320/ TP: / Upside :)
Indoco Remedies posted 3QFY2015 results marginally better than expectations, on
the net profit front, while net sales came in at marginally lower. The sales, during
the quarter grew at 13.0% yoy, mainly on back of the exports to end the period at
`213cr V/s expectation of `216cr. Exports (40% of sales) during the quarter, came
in at `83.3cr, registering a growth of 22.9% yoy, while the domestic sales grew by
7.4% yoy. The domestic formulation sales (`122.8cr) during the quarter grew by
6.9% yoy. The regulated market during the quarter grew by 26.7 % at `66.3cr as
against `52.3cr during the same quarter last year. The OPM came higher at
18.3% than expected 17.0% V/s 16.2% in 3QFY2014, an expansion of 210bps
yoy. The expansion in the OPM was driven by the 195bps expansion in the gross
margins (63.5% in 3QFY2015 V/s 61.6% in 3QFY2014), along with the lower rise
in the other expenditure. This along with the lower interest expenditure, which
dipped by 29.8% aided the net profit increase by 54.3% yoy to `21.6cr V/s `20cr
expected. We remain neutral on the stock.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
P/BVEV/EBITDA EV/Sales
(x)
(x)
(x)
FY2015E
856
18.2
82
8.9
16.7
36.1
5.6
19.8
3.6
FY2016E
1,112
18.2
117
12.7
20.2
25.3
4.7
15.2
2.8
Tech Mahindra (CMP: `2,878/ TP: / Upside:)
Tech Mahindra announced its 3QFY2015, in line with expectations on the sales
and the EBIT front, while net profit was marginally above. The company clocked
2.7% qoq USD revenue growth to end the period at US$924mn V/s US$920mn
expected. On constant currency terms (CC), the company posted a 4.9% qoq
growth. In INR terms, the consolidated revenues came in at `5752cr V/s `5,702cr
expected, up ~4.8% qoq. The growth in terms of verticals was lead by the
manufacturing vertical, which constituted 19.7% of sales V/s 17.7% in 2QFY2015.
Also, new clients added significant to the growth taking their contribution from 3%
in 2QFY2015 to 5% in 3QFY2015.
On the Operating front, the EBITDA margin of Tech Mahindra moved upwards by
17bp qoq to 20.2% V/s 20.4% expected. The company’s utilization rates improved
up to 74% in 3QFY2015 from 73% in 2QFY2015, while attrition inched upwards
to 19% from 18% in 2QFY2015. Tech Mahindra’s net profit grew by 11.9% qoq to
`805cr V/s `766cr expected. The variance is mainly on back of lower than
expected tax expenses during the period. In terms of client addition, the company
added 1 in the US$50mn+, 2 in the US$20mn+ and 1 in US$10mn+ bracket.
Also, the company announced the approval for a 1:1 bonus and sub-division of its
equity shares in the ratio of 2:1. We remain neutral on the stock.
www.angelbroking.com
Y/E
Sales OPM
PAT
EPS
March
(` cr)
(%)
(` cr)
(`)
FY2015E
21,656
22.4
FY2016E
27,754
22.0
ROE P/E P/BV
EV/EBITDA
EV/Sales
(x)
(x)
(x)
(x)
3,206
137.3 26.4 21.0
5.6
12.8
2.9
3,712
159.0 23.7 18.0
4.4
10.5
2.1
(%)
Market Outlook
February 02, 2015
Exide Industries (CMP: `186/ TP: /Upside :)
Exide Industries Ltd (EIL) 3QFY2015 results were below our estimates due to
continued weak operating performance. Revenues grew 19% yoy to `1,558 cr (in
line with our estimates) led by healthy growth in the aftermarket segment and
recovery in the OEM sales. However, Exide continued to disappoint on the
operating front, reporting margin of 11.6% (significantly lower than our estimate
of 14.1%). The operating margins declined 20 bp on sequential basis. We believe
EIL is facing pricing pressures given the increased competition, resulting into lower
margins. Further, lower other income at `1.2cr (decline of 75% yoy) dragged the
profitability. Net Profit at `97.2cr was way below our estimate of `130.3
cr. Currently, we have Neutral rating on the stock.
Y/E
Sales OPM
March
(` cr)
PAT
EV/EBITDA
EV/Sales
(x)
(x)
(x)
(x)
567
6.7 13.8 27.9
3.9
16.2
2.1
706
8.3 15.5 22.4
3.5
13.0
1.8
(%)
(` cr)
FY2015E
7,289 12.9
FY2016E
8,528 13.5
EPS ROE
(`)
(%)
P/E P/BV
Result Preview
Subros (CMP: `68/ TP: `80 /Upside: 18% )
Subros Ltd 3QFY2015 top-line is expected to grow 11% yoy. We expect the
volumes to grow 5% yoy while the realization is estimated to grow 7% yoy on back
of price hikes. We estimate the operating margins to improve 60 bp yoy to 11.1%
due to operating leverage and price hikes. Net Profit is estimated to grow 53% yoy
to `2.7cr. Currently, we have Buy rating on the stock.
Y/E
Sales OPM
March
(` cr)
PAT
EPS ROE
EV/EBITDA
EV/Sales
(x)
(x)
(x)
(x)
3.2
6.2 21.2
1.3
5.8
0.6
4.4
8.1 15.5
1.2
5.0
0.5
(%)
(` cr)
(`)
FY2015E
1,255 11.2
19
FY2016E
1,416 11.3
26
(%)
P/E P/BV
Economic and Political News



Oil ministry proposes to bring gas-based power plants under price-pooling
scheme
Centre to pump `1.5 lakh-cr in four new steel plants
Indian Consumer Spending to Surge to $4.2 tn
Corporate News



www.angelbroking.com
Adani Power to bid for all six reserved coal blocks
IOB to raise `1,000cr to augment addn'l Tier-1 capital
NMDC slashes iron ore prices by 5-10% for February
Market Outlook
February 02, 2015
Quarterly Bloomberg Brokers Consensus Estimate
Bharat Forge Ltd - February 02, 2015
Particulars (` cr)
3QFY15E
3QFY14
y-o-y (%)
2QFY15
q-o-q (%)
1,115
809
37.9
1,109
0.6
EBITDA
319
214
48.9
325
(1.6)
EBITDA margin (%)
28.6
26.5
Net profit
170
94
Net sales
29.3
80.5
174
(2.8)
y-o-y (%)
2QFY15
q-o-q (%)
Cummins India Ltd - February 02, 2015
Particulars (` cr)
Net sales
3QFY15E
3QFY14
1,148
1,001
14.7
1,117
2.7
EBITDA
193
198
(2.3)
190
1.6
EBITDA margin (%)
16.8
19.7
Net profit
167
147
13.6
202
(17.4)
3QFY15E
3QFY14
y-o-y (%)
2QFY15
q-o-q (%)
2,963
2,605
13.8
2,618
13.2
EBITDA
530
465
13.9
481
10.2
EBITDA margin (%)
17.9
17.9
Net profit
247
222
11.2
166
48.9
4QCY14E
4QCY13
y-o-y (%)
3QCY14
q-o-q (%)
2,826
2,693
4.9
2,742
3.1
EBITDA
281
361
(22.2)
379
(25.7)
EBITDA margin (%)
10.0
13.4
Net profit
192
278
17.0
UPL Ltd Consol - February 02, 2015
Particulars (` cr)
Net sales
18.4
ACC Ltd - February 03, 2015
Particulars (` cr)
Net sales
13.8
(31.0)
205
(6.4)
Crompton Greaves Ltd Consol - February 03, 2015
Particulars (` cr)
Net sales
EBITDA
3QFY15E
3QFY14
y-o-y (%)
2QFY15
q-o-q (%)
3,575
3,352
6.7
3,430
4.2
16.8
168
15.9
195
167
EBITDA margin (%)
5.5
5.0
Net profit
90
62
4.9
45.1
70
29.3
Hero MotoCorp Ltd - February 03, 2015
Particulars (` cr)
3QFY15E
3QFY14
y-o-y (%)
2QFY15
q-o-q (%)
6,770
6,846
(1.1)
6,864
(1.4)
EBITDA
926
898
3.1
935
(0.9)
EBITDA margin (%)
13.7
13.1
Net profit
710
525
Net sales
www.angelbroking.com
13.6
35.4
763
(7.0)
Market Outlook
February 02, 2015
Jindal Steel & Power Ltd Consol - February 03, 2015
Particulars (` cr)
2QFY15E
2QFY14
y-o-y (%)
1QFY15
q-o-q (%)
Net sales
5,151
5,336
(3.5)
5,073
1.5
EBITDA
1,616
1,701
(5.0)
1,636
(1.2)
EBITDA margin (%)
31.4
31.9
Net profit
159
562
(71.6)
442
(64.0)
3QFY15E
3QFY14
y-o-y (%)
2QFY15
q-o-q (%)
3,352
2,983
12.4
3,117
7.6
EBITDA
904
773
16.9
833
8.6
EBITDA margin (%)
27.0
25.9
Net profit
574
476
20.5
639
(10.3)
3QFY15E
3QFY14
y-o-y (%)
2QFY15
q-o-q (%)
1,350
1,123
20.1
2,086
(35.3)
14.2
1,288
(42.8)
32.3
Lupin Ltd Consol - February 03, 2015
Particulars (` cr)
Net sales
26.7
NHPC Ltd - February 03, 2015
Particulars (` cr)
Net sales
EBITDA
737
645
EBITDA margin (%)
54.6
57.4
Net profit
279
259
61.7
7.4
684
(59.3)
Punjab National Bank - February 03, 2015
Particulars (` cr)
Net profit
3QFY15E
3QFY14
y-o-y (%)
2QFY15
q-o-q (%)
977
755
29.3
575
69.8
Bharti Airtel Ltd Consol - February 04, 2015
Particulars (` cr)
Net sales
EBITDA
EBITDA margin (%)
Net profit
3QFY15E
3QFY14
y-o-y (%)
2QFY15
q-o-q (%)
23,489
21,939
7.1
22,845
2.8
7,932
7,100
11.7
7,700
3.0
33.8
32.4
1,352
610
121.6
1,383
(2.3)
3QFY15E
3QFY14
y-o-y (%)
2QFY15
q-o-q (%)
734
409
79.3
627
17.1
33.7
Canara Bank - February 04, 2015
Particulars (` cr)
Net profit
Tata Power Co Ltd Consol - February 04, 2015
Particulars (` cr)
www.angelbroking.com
3QFY15E
3QFY14
y-o-y (%)
2QFY15
q-o-q (%)
Net sales
8,982
8,656
3.8
8,364
7.4
EBITDA
1,823
1,786
2.0
1,692
7.7
EBITDA margin (%)
20.3
20.6
Net profit
104
(75)
20.2
0.0
(78)
0.0
Market Outlook
February 02, 2015
Result Calendar
Date
Company
February 2, 2015
February 6, 2015
United Phosphorus, Bharat Forge, Cummins India, LMW, Indian Bank
Hero Motocorp, TVS Motor, Crompton Greaves, ACC, Punjab Natl.Bank, GlaxoSmith Con, Marico, Britannia, Jindal
Steel, Lupin, NHPC
KEC International, J K Lakshmi Cements, Canara Bank, Central Bank, Tide Water Oil India, Aurobindo Pharma,
Alembic Pharma, Tata Power Co.
Tata Motors, Automotive Axle, CEAT, Ramco Cements, Allahabad Bank, IOB, UCO Bank, Godrej Consumer, PTC
India
Tata Chemicals, Apollo Tyres, Sun TV Network, NMDC, Tata Steel, GAIL
February 7, 2015
Ipca labs, GIPCL
February 9, 2015
Styrolution, Sterling Tools
February 10, 2015
Motherson Sumi, ABB, Nalco, Cadila Healthcare
February 11, 2015
FAG Bearings, Power Fin.Corpn., Syndicate Bank, BPCL
February 12, 2015
Hindalco, ONGC, Page Industries, Bajaj Electrical, Finolex Cables, MRF, GSK Pharma, CESC
February 13, 2015
M&M, Subros, Rural Elec.Corp., Nestle, Mphasis, HPCL
February 3, 2015
February 4, 2015
February 5, 2015
Source: Bloomberg, Angel Research
Global economic events release calendar
Date
Time
Country Event Description
Unit
Period
Bloomberg Data
Last Reported Estimated
February 2, 2015
2:25PM
Germany PMI Manufacturing
Value
3:00PM
UK
PMI Manufacturing
February 3, 2015
11:00AM
India
RBI Reverse Repo rate
11:00AM
India
RBI Repo rate
RBI Cash Reserve ratio
11:00AM
India
February 4, 2015
2:25PM
Germany PMI Services
February 5, 2015
5:30PM
UK
BOE Announces rates
February 6, 2015
7:00PM
US
Change in Nonfarm payrolls
7:00PM
US
Unnemployment rate
China
India
February 8, 2015
February 9, 2015
5:30PM
February 10, 2015
Jan F
51.00
--
Value
Jan
52.50
--
%
Feb 3
6.75
6.75
%
Feb 3
7.75
7.75
%
Feb 3
4.00
4.00
Value
Jan F
52.70
--
% Ratio
Feb 5
0.50
0.50
Thousands
Jan
252.00
233.00
%
Jan
5.60
5.60
Exports YoY%
% Change
Jan
9.70
--
Qtrly GDP YoY%
% Change
4Q
5.30
--
India
Imports YoY%
% Change
Jan
(4.78)
--
India
Exports YoY%
% Change
Jan
(3.77)
--
7:00AM
China
Consumer Price Index (YoY)
% Change
Jan
1.50
--
3:00PM
UK
Industrial Production (YoY)
% Change
Dec
1.10
--
February 12, 2015
5:30PM
India
Industrial Production YoY
% Change
Dec
3.80
--
February 13, 2015
3:30PM
Euro Zone Euro-Zone GDP s.a. (QoQ)
% Change
4Q A
0.20
--
12:30PM
Germany GDP nsa (YoY)
% Change
4Q P
1.20
--
February 16, 2015
12:00PM
India
Monthly Wholesale Prices YoY%
% Change
Jan
0.11
--
February 17, 2015
3:00PM
UK
CPI (YoY)
% Change
Jan
0.50
--
February 18, 2015
3:00PM
UK
Jobless claims change
% Change
Jan
(29.70)
--
7:00PM
US
Building permits
Thousands
Jan
1,032.00
--
7:00PM
US
Housing Starts
Thousands
Jan
1,089.00
--
7:45PM
US
Industrial Production
%
Jan
(0.11)
--
February 23, 2015
8:30PM
US
Existing home sales
Million
Jan
5.04
--
February 24, 2015
8:30PM
US
Consumer Confidence
S.A./ 1985=100
Feb
102.90
--
3:30PM
Euro Zone Euro-Zone CPI (YoY)
%
Jan F
(0.20)
--
February 25, 2015
8:30PM
US
New home sales
Thousands
Jan
481.00
--
February 26, 2015
7:00PM
US
Consumer price index (mom)
% Change
Jan
(0.37)
--
Source: Bloomberg, Angel Research
Market Outlook
February 02, 2015
h
Macro watch
Exhibit 2: IIP trends
(%)
(%)
12.0
11.0
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
8.0
2.0
(0.5)
(2.0)
(2.0)
56.0
6.0
5.0
5.6
5.7
Services PMI
5.4
52.0
3.9
50.0
2.4
48.0
Dec-14
Nov-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Aug-14
Jun-14
May-14
Apr-14
Jun-14
Jan-15
Dec-14
Nov-14
Oct-14
CRR
Nov-14
Sep-14
Sep-14
Aug-14
Jul-14
Jul-14
Reverse Repo rate
Jun-14
May-14
Mar-14
Mar-14
Jan-14
Dec-14
Nov-14
3.00
Oct-14
4.00
(30.0)
Sep-14
5.00
(20.0)
Aug-14
(10.0)
Jul-14
6.00
Jun-14
0.0
May-14
7.00
Apr-14
8.00
10.0
Mar-14
20.0
Source: Bloomberg, Angel Research
Repo rate
(%)
9.00
Apr-14
Imports yoy growth
Feb-14
Exports yoy growth
Exhibit 6: Key policy rates
May-14
Exhibit 5: Exports and imports growth trends
Feb-14
Apr-14
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
44.0
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Source: MOSPI, Angel Research
(%)
30.0
46.0
Feb-14
0.1
Mar-14
0.0
0.0
Jan-14
1.0
Feb-14
1.7
2.0
Dec-13
3.0
Nov-13
4.0
Feb-14
Mfg. PMI
54.0
5.0
Jan-14
Nov-14
Exhibit 4: Manufacturing and services PMI
(%)
6.2
Oct-14
Feb-14
Jan-14
Dec-13
2QFY15
1QFY15
4QFY14
3QFY14
2QFY14
1QFY14
4QFY13
3QFY13
2QFY13
1QFY13
4QFY12
3QFY12
2QFY12
(4.2)
(6.0)
Source: MOSPI, Angel Research
Exhibit 3: Monthly WPI inflation trends
7.0
0.5
-
(4.0)
1QFY12
0.9
Sep-14
4.5 4.6 4.4 4.4 4.4 4.8 4.6 4.6
5.3
1.1
0.1
Aug-14
5.7
Jul-14
5.8
Jun-14
6.5
3.8
2.8
Apr-14
7.0
Mar-14
7.6
4.3
3.7
4.0
Source: CSO, Angel Research
6.0
5.6
6.0
May-14
Exhibit 1: Quarterly GDP trends
Source: RBI, Angel Research
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Market Outlook
February 02, 2015
h
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.0
4.0
5.0
5.3
5.0
5.6
7.3
7.0
Japan (1.3)
Germany
France
0.4
1.2
2.7
USA
2.6
UK
Thailand
Malaysia
Indonesia
South Africa
0.6
0.7
China
(2.0)
India
(1.0)
Russia
-
Brazil
1.0
(0.2)
2.0
1.4
3.0
Source: Bloomberg, Angel Research
Exhibit 2: 2014 GDP Growth projection by IMF (%, yoy) across select developing and developed countries
(%)
8.0
7.0
6.0
5.0
4.0
0.9
Japan
0.4
France
USA
UK
Thailand
Malaysia
Indonesia
South
Africa
China
India
Russia
Brazil
-
Germany 1.4
2.2
3.2
1.0
5.9
5.2
1.4
7.4
5.6
1.0
0.3
2.0
0.2
3.0
Source: IMF, Angel Research
15.8
15.0
15.8
16.5
13.4
Malaysia
Thailand
UK
USA
Germany
15.0
15.5
Indonesia
Japan
16.9
South
Africa
15.2
11.7
China
France
17.1
India
5.4
Russia
Brazil
(x)
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
-
10.6
Exhibit 3: One year forward P-E ratio across select developing and developed countries
Source: Bloomberg, Angel Research
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Market Outlook
February 02, 2015
h
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
46,908
(6.3)
(6.0)
(0.2)
Russia
Micex
1,648
17.8
20.0
12.6
India
Nifty
8,809
8.7
11.2
42.4
China
Shanghai Composite
3,210
3.3
37.5
62.4
South Africa
Top 40
45,111
2.9
5.5
9.5
Mexico
Mexbol
40,951
(2.0)
(3.5)
3.6
Indonesia
LQ45
912
2.0
6.8
21.5
Malaysia
KLCI
1,781
0.8
(3.1)
0.2
Thailand
SET 50
1,050
4.1
4.3
20.8
USA
Dow Jones
17,165
(4.7)
2.3
8.5
UK
FTSE
6,749
3.3
7.3
4.8
Japan
Nikkei
17,674
(1.4)
15.9
11.3
Germany
DAX
10,694
8.6
18.4
14.3
France
CAC
4,604
7.3
12.6
12.0
Source: Bloomberg, Angel Research
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Market Outlook
February 02, 2015
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( Č)
Price ( Č)
( Č cr )
Sales ( Č cr )
FY15E
OPM(%)
EPS ( Č)
FY16E
FY15E
FY16E
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY15E
FY16E
FY15E
FY16E
FY15E
FY16E
FY15E
FY16E
FY15E
FY16E
Agri / Agri Chemical
Rallis
Neutral
225
-
4,384
2,020
2,365
13.9
13.9
9.0
10.5
25.1
21.5
5.2
4.4
22.6
22.4
2.2
1.9
United Phosphorus
Buy
368
424
15,773
11,850
13,627
17.3
17.3
29.9
35.3
12.3
10.4
2.5
2.1
22.2
21.7
1.5
1.2
Auto & Auto Ancillary
Ashok Leyland
Buy
66
78
18,697
13,915
17,882
7.6
9.5
0.8
2.8
82.1
23.5
3.5
3.3
4.4
14.0
1.3
1.0
Bajaj Auto
Neutral
2,389
-
69,140
22,473
26,699
19.6
19.8
111.8
133.6
21.4
17.9
6.4
5.5
27.5
30.5
2.7
2.2
Eicher Motors
Neutral
16,276
-
44,115
11,916
16,150
15.8
17.8
425.3
673.9
38.3
24.2
12.7
9.1
33.0
37.6
3.6
2.6
Hero Motocorp
Buy
2,870
3,462
57,301
28,387
33,935
14.0
15.0
143.7
182.2
20.0
15.8
8.2
7.1
41.2
45.2
1.8
1.5
L G Balakrishnan & Bros Accumulate
613
675
962
1,239
1,423
12.9
13.1
47.2
51.9
13.0
11.8
2.6
2.2
19.9
18.4
0.9
0.7
Mahindra and Mahindra Accumulate
1,263
1,428
78,444
39,758
44,615
12.9
13.1
55.9
65.2
22.6
19.4
3.9
3.4
17.4
17.7
1.7
1.5
Maruti
Accumulate
3,645
4,135
110,116
50,232
60,257
12.7
14.8
119.6
181.0
30.5
20.1
4.7
4.0
15.4
20.1
2.0
1.6
Tata Motors
Neutral
585
-
157,591 252,586 306,563
15.7
15.0
47.2
51.8
12.4
11.3
2.4
2.0
19.1
17.6
0.8
0.7
TVS Motor
Neutral
308
-
14,640
10,521
12,856
6.3
7.9
8.5
15.0
36.3
20.5
8.6
6.5
23.7
31.5
1.3
1.1
Amara Raja Batteries
Neutral
861
-
14,701
4,285
5,355
17.2
17.4
25.2
31.8
34.2
27.1
8.6
6.8
25.2
25.2
3.4
2.7
Exide Industries
Neutral
186
-
15,823
7,289
8,383
13.5
14.0
7.1
8.5
26.2
21.9
3.8
3.4
14.7
15.8
1.9
1.6
Apollo Tyres
Accumulate
242
263
12,339
14,514
16,334
14.5
14.8
20.4
23.9
11.9
10.1
2.2
1.8
18.7
18.1
0.9
0.8
Ceat
Buy
820
989
3,318
6,202
7,386
12.1
12.2
76.3
89.9
10.8
9.1
2.3
1.8
23.7
22.3
0.8
0.7
JK Tyres
Buy
121
165
2,739
7,616
8,372
13.0
13.6
16.5
19.4
7.3
6.2
1.9
1.5
26.2
23.9
0.6
0.6
Sterling Tools
Buy
330
397
226
342
394
47.5
54.8
27.4
33.1
12.1
10.0
2.0
1.7
16.2
16.7
0.8
0.7
Swaraj Engines
Buy
873
1,056
1,085
665
759
15.1
15.0
61.9
70.4
14.1
12.4
4.1
3.4
29.4
27.3
1.4
1.2
Subros
Buy
68
80
408
1,255
1,416
11.2
11.3
3.2
4.4
21.3
15.5
1.3
1.2
6.2
8.1
0.7
0.6
Capital Goods
BGR Energy
Neutral
155
-
1,122
3,938
4,362
11.6
11.8
23.9
27.1
6.5
5.7
0.8
0.7
19.9
17.6
0.9
0.9
BHEL
Neutral
292
-
71,421
36,844
36,607
10.8
10.8
11.8
11.4
24.7
25.5
2.4
2.2
10.2
9.0
1.8
1.8
Blue Star
Accumulate
335
377
3,008
3,202
3,619
4.3
4.6
8.7
9.4
38.7
35.6
5.6
5.0
15.4
14.9
1.0
0.9
Crompton Greaves
Buy
190
235
11,889
14,899
16,720
6.6
7.2
7.9
10.0
24.0
19.0
3.0
2.7
12.9
14.8
0.9
0.8
KEC International
Buy
94
109
2,422
8,657
9,879
7.2
7.5
7.1
9.9
13.3
9.5
1.8
1.6
22.9
24.7
0.5
0.4
Thermax
Neutral
1,146
-
13,651
6,091
6,988
9.4
9.7
29.5
35.6
38.8
32.2
5.9
5.1
16.0
17.0
2.2
1.9
ACC
Neutral
1,560
-
29,289
12,249
13,960
14.9
15.6
56.1
69.1
27.8
22.6
3.5
3.2
13.0
14.9
2.1
1.9
Ambuja Cements
Neutral
249
-
38,558
10,116
11,296
21.8
22.9
8.5
10.2
29.4
24.4
3.8
3.5
13.3
14.9
3.3
2.9
India Cements
Buy
108
146
3,307
5,086
5,869
10.5
11.3
3.2
6.1
33.2
17.6
1.3
1.3
3.5
7.4
1.2
1.0
J K Lakshmi Cement
Accumulate
388
437
4,566
2,475
3,312
17.7
20.6
9.8
21.8
39.6
17.8
3.3
2.9
8.6
17.3
2.3
1.7
Cement
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Market Outlook
February 02, 2015
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Č cr )
OPM(%)
EPS ( Č)
PER(x)
P/BV(x)
RoE(%)
( Č)
Price ( Č)
( Č cr )
FY15E
FY16E
FY15E
FY16E
FY15E
FY16E
FY15E
FY16E
FY15E
FY16E
EV/Sales(x)
FY15E
FY16E
FY15E
FY16E
Cement
Mangalam Cements
Buy
321
389
857
1,001
1,189
13.4
15.0
16.7
29.9
19.2
10.7
1.6
1.5
8.5
14.1
1.2
0.9
Orient Cement
Neutral
189
-
3,879
1,622
2,185
19.3
22.0
8.0
7.8
23.8
24.3
4.1
3.7
18.4
16.0
3.2
2.4
Ramco Cements
Neutral
364
-
8,652
4,251
5,018
17.4
19.5
9.6
16.4
37.8
22.2
3.2
2.9
8.8
13.6
2.7
2.2
Shree Cement^
Neutral
10,956
-
38,169
6,558
8,056
24.4
25.3
272.3
360.5
40.2
30.4
7.2
6.0
19.4
21.5
5.4
4.4
UltraTech Cement
Accumulate
3,140
3,526
86,157
24,053
28,387
20.7
23.3
91.0
129.0
34.5
24.3
4.4
3.8
13.6
16.9
3.7
3.1
Buy
438
561
908
2,038
2,507
11.2
12.4
43.0
43.0
10.2
10.2
1.4
1.2
15.9
12.6
1.1
1.1
Axis Bank
Buy
589
686
139,163
22,498
26,155
3.6
3.7
31.3
37.1
18.8
15.9
3.2
2.8
17.9
18.4
-
-
Bank of Baroda
Buy
193
264
41,514
18,371
20,677
2.0
2.1
23.8
27.3
8.1
7.1
1.1
1.0
13.5
13.8
-
-
Bank of India
Buy
267
373
17,148
16,297
18,384
2.1
2.1
50.7
60.9
5.3
4.4
0.7
0.6
11.9
12.9
-
-
Canara Bank
Buy
443
548
20,438
14,057
15,709
2.0
2.0
59.9
71.0
7.4
6.2
0.9
0.8
11.0
11.9
-
-
Dena Bank
Buy
Federal Bank
Accumulate
HDFC
Construction
MBL Infrastructures
Financials
57
77
3,047
3,775
4,298
2.2
2.3
7.4
9.1
7.7
6.2
0.6
0.5
6.2
7.3
-
-
142
150
12,155
3,182
3,506
3.2
3.2
11.7
12.2
12.1
11.6
1.6
1.4
13.6
12.9
-
-
Neutral
1,266
-
199,011
9,842
11,678
3.6
3.6
40.5
48.2
31.2
26.3
6.4
5.7
28.1
28.9
-
-
HDFC Bank
Accumulate
1,076
1,140
260,261
30,897
37,011
4.4
4.4
42.5
52.1
25.3
20.7
5.0
4.2
21.5
22.3
-
-
ICICI Bank
Buy
361
463
209,195
30,623
36,128
3.2
3.2
19.7
23.5
18.3
15.4
2.8
2.4
15.2
16.0
-
-
IDBI Bank
Accumulate
71
81
11,372
9,378
10,281
1.9
1.9
6.2
7.0
11.4
10.1
0.5
0.5
4.5
4.9
-
-
Indian Bank
Buy
186
255
8,625
6,094
6,679
2.5
2.5
23.3
27.3
8.0
6.8
0.6
0.6
7.6
8.4
-
-
LIC Housing Finance
Accumulate
480
541
24,204
2,504
2,969
2.3
2.3
29.0
33.9
16.5
14.2
2.9
2.5
18.1
18.2
-
-
Punjab Natl.Bank
Buy
190
256
34,379
22,911
25,755
3.0
3.0
21.6
31.0
8.8
6.1
1.0
0.9
11.3
13.8
-
-
South Ind.Bank
Accumulate
28
31
3,740
1,849
1,984
2.4
2.4
2.9
3.5
9.6
7.9
1.1
1.0
11.4
12.6
-
-
St Bk of India
Accumulate
310
355
231,438
75,211
86,339
3.0
3.0
18.2
24.0
17.0
12.9
2.0
1.7
11.3
13.8
-
-
Union Bank
Buy
209
248
13,288
11,766
13,312
2.4
2.4
29.3
34.6
7.1
6.0
1.0
0.9
10.5
11.4
-
-
Vijaya Bank
Buy
50
58
4,270
2,953
3,269
1.5
1.5
5.5
6.6
9.0
7.6
0.9
0.9
8.1
9.1
-
-
Yes Bank
Buy
863
1,031
36,013
5,534
6,899
3.1
3.2
48.8
60.7
17.7
14.2
3.1
2.6
21.5
19.7
-
-
FMCG
Asian Paints
Neutral
857
-
82,246
14,498
16,653
16.0
16.0
15.6
17.7
55.0
48.5
16.0
12.9
32.4
29.4
5.6
4.8
Britannia
Neutral
1,889
-
22,649
7,056
8,065
9.7
9.6
40.4
47.2
46.8
40.0
18.0
13.3
45.1
38.3
3.1
2.7
Colgate
Neutral
1,880
-
25,563
4,165
4,836
17.7
18.4
43.5
50.5
43.3
37.2
37.2
28.4
94.1
86.7
6.0
5.1
Dabur India
Neutral
256
-
44,993
8,135
9,370
17.1
17.1
6.4
7.3
40.3
34.9
13.3
10.5
36.9
33.7
5.5
4.7
GlaxoSmith Con*
Neutral
5,626
-
23,659
4,259
4,919
15.7
15.9
143.2
168.3
39.3
33.4
11.8
9.5
33.1
31.4
5.1
4.3
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Market Outlook
February 02, 2015
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( Č)
Price ( Č)
( Č cr )
Sales ( Č cr )
OPM(%)
EPS ( Č)
PER(x)
P/BV(x)
FY15E
FY16E
FY15E
FY16E
FY15E
FY16E
FY15E
FY16E
FY15E
RoE(%)
EV/Sales(x)
FY16E
FY15E
FY16E
FY15E
FY16E
FMCG
Godrej Consumer
Neutral
1,062
-
36,142
8,777
10,168
15.4
15.6
26.1
31.1
40.7
34.1
8.0
6.7
19.7
19.7
4.2
3.6
HUL
Neutral
933
-
201,786
31,055
34,940
13.7
14.2
18.3
20.1
50.9
46.4
42.7
30.8
99.0
77.0
6.3
5.6
ITC
Accumulate
369
409
294,876
38,185
44,068
37.7
37.8
12.7
14.6
29.0
25.2
9.5
8.1
32.7
32.1
7.4
6.4
Marico
Neutral
359
-
23,177
5,406
6,351
15.7
15.7
8.6
10.4
41.8
34.6
12.9
10.1
30.7
29.0
4.2
3.6
Nestle*
Neutral
7,109
-
68,543
10,356
11,691
22.0
22.2
138.0
160.9
51.5
44.2
21.7
16.5
48.0
55.0
6.5
5.7
Tata Global
Buy
159
186
9,814
8,615
9,562
9.5
9.5
8.1
8.9
19.7
17.9
2.4
2.3
9.1
9.4
1.1
1.0
IT
HCL Tech^
Accumulate
1,794
1,968
126,021
36,528
41,535
23.2
24.0
96.8
109.3
18.5
16.4
4.8
3.9
24.3
23.9
3.1
2.6
Infosys
Accumulate
2,143
2,449
246,089
53,943
59,985
28.0
28.0
110.2
119.8
19.4
17.9
4.4
3.8
22.5
21.0
3.9
3.4
TCS
Accumulate
2,481
2,833
485,960
95,106 108,420
29.6
29.2
110.2
123.9
22.5
20.0
8.1
7.2
35.9
35.7
4.8
4.2
Tech Mahindra
Neutral
2,878
-
69,078
21,656
27,724
22.4
20.0
137.3
158.5
21.0
18.2
5.6
4.4
26.4
23.7
2.8
2.1
Wipro
Buy
606
711
149,683
50,000
56,000
23.1
23.7
35.6
39.5
17.0
15.4
3.6
3.0
21.2
19.8
2.5
2.1
D B Corp
Neutral
384
-
7,054
2,007
2,241
26.9
26.8
17.7
19.8
21.7
19.4
5.3
4.6
24.4
23.7
3.5
3.1
HT Media
Neutral
134
-
3,119
2,301
2,495
12.4
12.4
7.5
8.0
17.9
16.7
1.6
1.5
9.0
8.7
0.9
0.8
Jagran Prakashan
Accumulate
135
154
4,399
1,824
1,981
22.9
24.2
7.7
9.1
17.5
14.9
3.2
2.8
19.0
20.2
2.4
2.2
Sun TV Network
Hindustan Media
Ventures
Metals & Mining
Neutral
407
-
16,027
2,548
2,879
68.6
68.9
22.8
25.8
17.8
15.8
4.6
4.0
27.1
26.7
5.8
5.0
Buy
238
292
1,746
820
920
20.0
20.0
17.8
19.2
13.4
12.4
2.4
2.0
17.9
16.4
1.6
1.4
Coal India
Buy
361
421
227,926
73,842
81,735
11.8
12.9
27.1
31.2
13.3
11.6
4.5
3.7
33.9
32.1
2.2
1.8
Hind. Zinc
Neutral
175
-
73,859
13,881
15,410
47.0
48.9
17.0
19.0
10.3
9.2
1.7
1.5
16.9
16.4
3.2
2.6
Hindalco
Neutral
140
-
28,868
97,816 104,037
11.2
11.4
17.9
19.5
7.8
7.2
0.7
0.6
8.6
8.6
0.8
0.7
JSW Steel
Buy
977
1,287
23,623
57,358
60,796
18.8
19.3
117.0
123.0
8.4
8.0
1.0
0.9
12.2
11.4
1.1
1.0
NMDC
Neutral
142
-
56,259
14,551
16,453
67.4
67.7
19.2
21.1
7.4
6.7
1.7
1.4
21.9
20.8
2.5
2.4
SAIL
Neutral
77
-
31,946
52,835
56,944
13.3
14.4
7.9
9.8
9.8
7.9
0.7
0.7
7.4
8.8
1.0
1.0
Sesa Sterlite
Neutral
202
-
59,872
86,780
Tata Steel
Buy
390
539
Cairn India
Neutral
233
GAIL
Neutral
424
ONGC
Neutral
351
-
Petronet LNG
Neutral
180
-
Reliance Industries
Accumulate
915
1,034
Media
89,360
32.2
30.4
19.3
21.2
10.5
9.5
0.7
0.7
7.9
6.5
0.9
0.8
37,921 147,705 155,401
13.3
14.2
49.0
60.7
8.0
6.4
1.0
0.9
12.4
13.5
0.7
0.7
-
43,759
17,818
19,412
69.4
68.2
44.3
51.7
5.3
4.5
0.7
0.6
13.0
13.2
1.1
0.9
-
53,815
59,990
66,199
11.9
12.8
34.2
42.8
12.4
9.9
1.8
1.6
15.3
15.9
0.9
0.8
300,683 177,311 201,041
31.2
35.4
30.4
44.7
11.6
7.9
1.7
1.5
14.2
17.8
1.6
1.3
42,913
4.2
4.9
10.5
13.7
17.1
13.1
2.4
2.1
14.2
15.7
0.4
0.4
296,149 378,320 368,790
9.3
12.8
89.9
112.8
10.2
8.1
1.1
1.0
11.4
12.8
0.7
0.7
Oil & Gas
www.angelbroking.com
13,485
40,481
Market Outlook
February 02, 2015
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( Č)
Price ( Č)
( Č cr )
Sales ( Č cr )
FY15E
OPM(%)
EPS ( Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY16E
FY15E
FY16E
FY15E
FY16E
FY15E
FY16E
FY15E
FY16E
FY15E
FY16E
FY15E
FY16E
Pharmaceuticals
Alembic Pharma
Neutral
471
-
8,881
2,188
2,542
19.4
19.3
15.7
18.4
30.0
25.6
9.7
7.3
37.2
32.6
4.1
3.5
Aurobindo Pharma
Neutral
1,248
-
36,419
11,707
14,054
19.9
19.9
48.0
56.3
26.0
22.2
7.2
5.5
31.8
28.2
3.6
3.0
Aventis*
Accumulate
3,334
3,700
7,678
1,912
2,226
15.5
16.4
104.5
123.1
31.9
27.1
4.5
3.7
17.6
20.7
3.7
3.0
Cadila Healthcare
Neutral
1,639
-
33,564
8,505
10,176
16.7
17.2
49.8
61.9
32.9
26.5
7.9
6.3
26.5
26.5
4.1
3.4
Cipla
Neutral
696
-
55,887
11,509
14,383
18.8
21.7
20.9
29.6
33.3
23.5
4.8
4.1
15.6
18.8
4.8
3.8
Dr Reddy's
Buy
3,237
3,935
55,129
15,867
18,657
23.8
24.9
155.2
196.7
20.9
16.5
4.8
3.8
25.8
26.0
3.5
2.9
Dishman Pharma
Buy
153
215
1,237
1,511
1,662
23.0
23.0
16.7
21.7
9.2
7.1
1.0
0.8
10.8
12.7
1.2
0.9
GSK Pharma*
Neutral
3,396
-
28,768
2,640
2,853
19.7
20.5
54.5
59.4
62.3
57.2
14.7
14.6
23.4
25.7
10.2
9.4
Indoco Remedies
Neutral
322
-
2,965
856
1,112
18.2
18.2
10.4
14.2
30.9
22.7
5.5
4.5
19.2
21.8
3.6
2.8
Ipca labs
Buy
638
817
8,054
3,503
4,213
18.6
20.9
36.2
48.1
17.6
13.3
3.4
2.8
21.2
23.3
2.5
2.1
Lupin
Neutral
1,584
-
71,190
13,921
16,021
26.9
26.9
53.0
60.8
29.9
26.1
7.8
6.1
27.8
26.1
5.1
4.4
Ranbaxy*
Neutral
704
-
29,952
12,024
13,827
13.2
10.0
18.3
13.9
38.5
50.6
7.7
6.7
21.6
14.0
3.2
2.8
Sun Pharma
Neutral
916
-
189,703
18,929
38,386
44.0
31.5
31.2
34.9
29.4
26.2
7.8
5.3
28.5
27.9
9.4
5.4
Power
Tata Power
Neutral
91
-
24,477
37,654
38,320
25.0
25.2
5.9
6.5
15.3
13.9
1.7
1.6
11.0
11.6
1.4
1.3
NTPC
Accumulate
144
161
118,570
74,675
80,198
24.9
26.1
10.9
12.7
13.2
11.3
1.3
1.2
9.7
10.6
2.2
2.0
Bharti Airtel
Buy
373
429
149,003
95,793 103,292
33.6
34.2
12.8
16.4
29.1
22.7
2.3
2.1
8.2
9.3
2.2
1.9
Idea Cellular
Buy
155
192
55,599
30,636
34,560
32.0
32.4
7.5
8.6
20.6
18.0
2.7
2.3
13.9
13.8
2.4
2.1
Telecom
zOthers
Abbott India*
Neutral
3,978
-
8,452
2,365
2,781
14.8
15.2
117.7
142.7
33.8
27.9
8.5
6.7
28.0
27.0
3.3
2.8
Bajaj Electricals
Neutral
233
-
2,345
4,677
5,458
6.2
6.4
14.4
19.0
16.2
12.2
2.8
2.4
17.4
19.4
0.5
0.4
Cravatex
Accumulate
400
442
103
207
239
6.6
6.6
20.2
27.8
19.8
14.4
2.3
2.0
11.7
14.2
0.8
0.7
Finolex Cables
Neutral
254
-
3,880
2,527
2,815
11.1
11.4
14.4
16.8
17.6
15.1
3.0
2.6
17.1
17.0
1.4
1.2
Goodyear India*
Buy
607
830
1,401
1,785
1,943
10.5
10.7
53.1
59.3
11.4
10.3
2.3
2.0
22.1
20.7
0.5
0.4
Hitachi
Neutral
1,122
-
3,051
1,345
1,550
8.0
8.9
20.1
25.7
55.9
43.7
10.5
8.6
20.6
21.6
2.3
2.0
Jyothy Laboratories
Neutral
288
-
5,206
1,554
1,891
13.3
13.5
8.9
9.4
32.4
30.5
5.5
4.6
17.6
16.5
3.5
2.7
MRF
Neutral
39,992
-
16,961
14,450
15,981
16.1
16.3 2,760.4 3,190.2
14.5
12.5
3.0
2.4
23.0
21.4
1.2
1.0
Page Industries
Neutral
11,786
-
13,146
1,442
1,773
20.6
21.0
174.4
219.9
67.6
53.6
32.4
23.0
56.0
50.2
9.2
7.5
Relaxo Footwears
Neutral
659
-
3,954
1,462
1,756
12.0
12.3
14.8
19.8
44.4
33.3
11.0
8.4
24.7
25.0
2.8
2.3
Siyaram Silk Mills
Neutral
999
-
937
1,505
1,810
10.7
11.4
74.2
118.8
13.5
8.4
2.2
1.8
17.4
23.3
0.8
0.6
Styrolution ABS India*
Neutral
704
-
1,239
1,172
1,288
7.0
7.0
29.7
33.3
23.7
21.2
2.4
2.2
10.5
10.7
1.1
1.0
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Market Outlook
February 02, 2015
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( Č)
Price ( Č)
( Č cr )
Sales ( Č cr )
FY15E
OPM(%)
EPS ( Č)
FY16E
FY15E
FY16E
FY15E
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY16E
FY15E
FY16E
FY15E
FY16E
FY15E
FY16E
FY15E
FY16E
zOthers
Tree House
Neutral
465
-
1,967
206
246
54.7
54.7
15.9
19.2
29.2
24.2
4.1
3.6
14.1
15.1
9.2
7.6
TVS Srichakra
Neutral
1,671
-
1,280
1,923
2,167
9.3
9.4
114.0
137.1
14.7
12.2
4.6
3.5
31.5
28.7
0.8
0.7
Vesuvius India*
Neutral
714
-
1,450
688
758
17.8
18.0
35.4
39.8
20.2
18.0
3.2
2.8
16.8
16.4
1.9
1.7
HSIL
Buy
Kirloskar Engines India
Buy
Ltd
M M Forgings
Neutral
399
568
2,635
2,035
2,349
19.5
20.8
21.2
30.4
18.9
13.1
2.1
1.9
11.3
14.3
1.6
1.4
269
319
3,891
2,549
2,890
10.7
11.6
12.2
15.8
22.1
17.1
2.9
2.6
13.4
16.0
1.3
1.1
572
-
691
493
581
22.5
22.9
44.2
55.0
13.0
10.4
2.8
2.3
24.2
24.0
1.7
1.4
ITD Cementation India
Neutral
493
-
765
1,386
1,636
11.1
11.3
9.4
28.2
52.7
17.5
1.4
1.3
2.6
7.3
1.0
0.9
Banco Products (India)
Buy
139
182
993
1,313
1,536
13.3
13.7
14.3
18.2
9.7
7.6
1.6
1.3
16.8
19.0
0.8
0.7
Competent Automobiles Buy
92
115
56
872
977
2.6
3.0
16.6
23.1
5.5
4.0
0.6
0.5
11.3
13.7
0.1
0.1
121
174
193
968
1,177
8.4
8.7
10.5
24.8
11.6
4.9
0.6
0.5
4.8
10.5
0.4
0.3
Visaka Industries
Buy
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on January 30, 2015
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Market Outlook
February 02, 2015
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
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