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Market Outlook

April 22, 2016

Market Cues

(Pts)

(Close)

0.1

36

25,880

Nifty

(0.0)

(3)

7,912

Mid Cap

(0.5)

(55)

11,009

Small Cap

(0.5)

(58)

11,077

2.0

363

18,951

Chg (%)

(Pts)

(Close)

(0.6)

(114)

17,982

0.0

(2)

4,946

(0.5 )

(28)

6,381

Nikkei

2.7

457

17,364

Hang Seng

1.8

386

21,622

(0.7)

(20)

2,953

BSE Sensex

Indian markets are expected to open flat tracking SGX Nifty.


US markets closed lower after three days of positive move, as crude prices and
Defensive sectors declined .Selling was witnessed selling in the telecom, utilities and
consumer staples segment. Dowjones closed down 114 points. Over the past one
month the market has been supported by formerly beaten down sectors indicating a
possible broader investor churn in sectors like energy, materials and industrial.
European stocks fell on profit taking after three days of gains as sluggish British
retail sales data and mixed earnings reports induced caution among investors,
heading into the ECB meeting later in the day. FTSE closed down 28 points while
DAX closed marginally up by 14 points.
Indian indices closed flattish on Thursday. Banking stocks witnessed huge buying in
the initially hours after the news that RBI has allowed 20 accounts to be excluded
from the AQR list. This lifted the overall markets however; the markets witnessed
selling at higher levels and closed flat. Imports results like Reliance Industries and
HDFC are set to declare their results for the quarters during the day, which should
give further direction to the markets.
News & Result Analysis

Chg (%)

Domestic Indices

News Analysis: Viom stake sale fetches SREI Infra `2,931 cr

Detailed analysis on Pg2

Bankex

Global Indices

Dow Jones
Nasdaq
FTSE

Shanghai Com

Advances / Declines

BSE

NSE

Advances

1,063

631

Declines

1,526

945

158

67

Unchanged

Investors Ready Reckoner

Volumes (` Cr)

Key Domestic & Global Indicators


Stock Watch: Latest investment recommendations on 150+ stocks

BSE

3,238

NSE

20,564

Refer Pg5 onwards

Top Picks
Rating

CMP
(`)

Target
(`)

Upside
(%)

Net Inflows (` Cr)

Net

FII

(11)

Company

Sector

Amara Raja

Auto & Auto Ancillary

Buy

929

1,040

12.0

HCL Tech

IT

Buy

846

1,038

22.7

LIC Housing

Financials

Buy

465

592

27.2

Top Gainers

Bharat Electronics

Capital Goods

Buy

1,169

1,414

20.9

Amtekauto

Buy

189

265

40.4

Navkar Corporation Others

MFs

(300)

Mtd

Ytd

1,281 (25,635)
(615)

60,048

Price (`)

Chg (%)

40

8.5

Aplltd

611

6.9

More Top Picks on Pg4

Mrpl

70

6.5

Key Upcoming Events

Icicibank

253

6.3

89

5.1

Price (`)

Chg (%)

559

(7.0)

43

(4.5)

300

(4.2)

12,975

(4.1)

2,063

(4.1)

Previous
Reading

Consensus
Expectations

PMI Services

55.1

55.1

US

New Home sales(thousand)

512

525

Apr 26

US

Consumer Confidence

96.2

95.8

Apr

Euro Zone GDP QoQ

Date

Region

Event Description

Apr 22

Germany

Apr25

Pnb

Wipro
Network18

0.30
6.(
6.(

More Events on Pg5

Top Losers

Sobha
Pageind
Crisil

As on April 21, 2016

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Market Outlook
April 22, 2016

Viom's stake sale fetches SREI `2,931 cr


SREI Infrastructure Finance has announced on Thursday that the stake sale in Viom
Networks to Tower Corporation was complete. The overall transaction amounting
to `7,600cr, resulted in a total foreign direct investment inflow of `5856cr in to the
telecom infrastructure segment of the country, of which SREI received a total of
`2,931cr.
SREI along with other shareholders of Viom had entered into a definite agreement
to with ATC for selling its stake in Viom, which owns and operates over 42,000
wireless communication towers across India.Sunil Kanoria, vice-chairman of Srei
and vice-chairman & managing director of Viom, said: Post the receipt of all
regulatory approvals, the transaction has been completed and we have now
received the entire consideration for our stake sale. This will lead to substantial
cash inflow into Srei, which will lower its debt and reduce interest cost, thereby
augmenting capital and improving future profitability.
SRE is one of Indias largest private sector integrated infrastructure institutions,
consistently delivering innovative solutions in the infrastructure sector. The
companys business includes Infrastructure project financing, Advisory &
Development, Infrastructure Equipment Finance, Alternate Investment Funds,
Capital Markets and Insurance Broking.
At the CMP of `63.7 the stock is trading at 0.9x its 9mFY16 Book value of `72. We
dont have rating on the stock; however feel that this deal is likely to be beneficial
for the company.

IndusInd Bank Q4 net profit up 25%


IndusInd Bank has reported a 25% jump in PAT to `620 cr in 4QFY16compared to
`495 cr in 4QFY15. The rise was on the back of higher net interest and other
income. For the full year of 2015-16, net profit increased 27% to `2,286 cr, as
compared to `1,794 cr in FY15.Net interest income grew 37% to `1,268 cr as
compared to `925 cr a year before. The management said this was fuelled by the
retail (small borrower) segment. In FY16, credit growth in this segment improved
by 29 % and by 28 % in the corporate segment. Other income was up 31 % to
`913 cr.
IndusInd has been one of the most consistent performers among the pvt banks. At
the CMP of `971 the stock is trading at 3.2 its FY16 Book Value. We dont have a
rating on the stock.

Economic and Political News

10 mn give up LPG subsidy, says Government

Domestic Air traffic grew by 24.6% says IATA

Steel companies ask for antidumping duty on cold rolled steel

DBT for fertiliser this financial year

Corporate News

www.angelbroking.com

Vioms stake sale fetches SREI Infra `2931 cr.

Britain might take 25% equity stake in Tata Steel UK

VST Industriess 4QFY16 PAT grows by 19% to `49 cr

Market Outlook
April 22, 2016

Quarterly Bloomberg Brokers Consensus Estimate


HDFC Bank Ltd - April 22, 2016
Particulars (` cr)
PAT

4QFY16E

4QFY15

y-o-y (%)

3QFY16

q-o-q (%)

3,385

2,807

20.6

3,357

0.9

Reliance Industries Ltd- April 22, 2016


Particulars (` cr)

4QFY16E

4QFY15

y-o-y (%)

3QFY16

q-o-q (%)

Net sales

50,310

56,043

(10.2)

56,567

(11.1)

EBITDA

10,173

8,629

17.9

10,272

(1.0)

EBITDA margin (%)

20.2

15.4

7,016

6,243

12.4

7,218

(2.8)

4QFY16E

4QFY15

y-o-y (%)

3QFY16

q-o-q (%)

1,636

2,677

(38.9)

2,039

(19.8)

EBITDA

384

2,973

(87.1)

666

(42.3)

EBITDA margin (%)

23.5

111.0

(161)

264

Net profit

18.2

CAIRN India Ltd April 22, 2016


Particulars (` cr)
Net sales

Net profit

32.7
0.0

0.0

Maruti Suzuki India Ltd - April 26, 2016


Particulars (` cr)
Net sales
EBITDA
EBITDA margin (%)
Net profit

4QFY16E

4QFY15

y-o-y (%)

3QFY16

q-o-q (%)

14,696

13,273

10.7

14,768

(0.5)

2,200

2,164

1.6

2,170

1.4

15.0

16.3

1,190

1,284

(7.3)

1,019

16.7

4QFY16E

4QFY15

y-o-y (%)

3QFY16

q-o-q (%)

2,341

2,181

7.3

2,175

7.6

14.7

Axis Bank Ltd April 26, 2016


Particulars ((` cr)
PAT

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Market Outlook
April 22, 2016

Top Picks
Large Cap
Market Cap
(` Cr)

CMP
(`)

Target
(`)

Upside
(%)

Amara Raja Batteries

15,866

929

1,040

12.0

Bharat Electronics

28,063

1,169

1,414

20.9

HCL Tech

1,19,297

846

1,038

22.7

HDFC Bank

2,75,838

1,091

1,262

15.7

Infosys

2,82,617

1,226

1,347

9.8

LIC Housing Finance

23,469

465

592

27.2

NBCC

12,027

1,002

1,089

8.7

Company

Rationale
To outpace battery industry growth due to better technological
products leading to market share gains in both the automotive
OEM and replacement segments.
Uptick in defense capex by government when coupled with
BELs strong market positioning, indicate that good times are
ahead for BEL.
The stock is trading at attractive valuations and is factoring all
the bad news.
Strong visibility for a robust 20% earnings trajectory, coupled
with high quality of earnings on account of high quality retail
business and strategic focus on highly rated corporates.
Back on the growth trend, expect a long term growth of 14%
to be a US$20bn in FY2020.
LICHF continues to grow its retail loan book at a healthy pace
with improvement in asset quality. We expect the company to
post a healthy loan book which is likely to reflect in a strong
earnings growth.
Huge bid pipeline of re-development works at Delhi and other
State Governments and opportunity from Smart City, positions
NBCC to report strong growth, going forward.

Source: Company, Angel Research

Mid Cap
Company

Market Cap
(` Cr)

CMP
(`)

Target
(`)

Upside
(%)

Blue Star

3,748

417

458

9.9

Dewan Housing

5,988

205

270

31.6

IL&FS Transport

2,668

81

93

14.7

Jagran Prakashan

5,713

175

189

8.2

Mahindra Lifespace

1,814

442

554

25.3

Navkar Corporation

2,691

189

265

40.4

Radico Khaitan

1,244

94

156

66.8

Siyaram Silk Mills

1,029

1,098

1,354

23.3

Source: Company, Angel Research

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Rationale
Favorable outlook for the AC industry to augur well for
Cooling products business which is out pacing the market
growth. EMPPAC division's profitability to improve once
operating environment turns around.
With a focus on the low and medium income (LMI) consumer
segment, the company has increased its presence in tier-II &
III cities where the growth opportunity is immense.
Commencement of new projects, downtrend in the interest
rate cycle, to lead to stock re-rating
Economic recovery to have favourable impact on advertising
& circulation revenue growth. Further, the acquisition of a
radio business (Radio City) would also boost the company's
revenue growth.
Speedier execution and speedier sales, strong revenue visibilty
in short-to-long run, attractive valuations
Massive capacity expansion along with rail advantage at ICD
as well CFS augurs well for the company
Earnings boost on back of stable material prices and
favourable pricing environment. Valuation discount to peers
provides additional comfort
Strong brands and distribution network would boost growth
going ahead. Stock currently trades at an inexpensive
valuation.

Market Outlook
April 22, 2016
Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

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