1
Market Strategy: Trending Towards New Highs August 2016
Anand Laddha Research Analyst [email protected] +91 (22) 4272 2636
Sahil Kapoor Chief Market Strategist [email protected] +91 (22) 4088 6044
2
Market Strategy
Favourable growth dynamics, a quasi stimulus from the 7th Pay Commission doles, positive policy developments,
under control inflation and a reviving Emerging Markets outlook are coming together to give Indian markets a reason to trend towards life highs. We continue to remain "Bullish” on Indian equities over medium to long term. We expect Nifty (current level - 8538) to scale to a life time high in FY17 and there appears to be upside risks to our targets. Monsoon for the current year is progressive at above normal pace and sowing is accelerating all over India – this
should help inflation numbers to cool off and rural economy to recover
Stronger focus on rural India and front loading of government expenditure in the first quarter will support revival of the economy and especially the hard hit rural India
7th Pay Commission increments and arrears are expected to get credited in the next one month. This would result in a large demand push, especially on urban consumption
Crude oil prices have corrected by more than 15% after hitting $54 Brent in early June’16. This would keep the
room open for the government to remain committed to its fiscal targets and to continue its investment spending.
Probability of GST getting passed in this monsoon session has increased significantly due to change in the mix of Rajya Sabha. This would be a big positive step over the long term
We expect marginal growth in earnings due to base effect and nominal increase in demand from core industries in Q1FY17 results. An earnings revival may take place in the next two quarters
Risk: No short term visibility on Brexit, FCNR redemption in September and elections in major economies
3
Equity Strategy
Key recommended sectors and rationale
Autos and Auto ancillary – Twin benefit of fall in input cost due to low commodity prices and increase in
consumption demand
Private Sector Banks and NBFCs – Fall in interest rates and pent up consumer credit will lead to improvement in asset quality
Infrastructure – Government focus and spending on infrastructure will aid execution. Roads sector remain key beneficiary of a strong minister at the helm with an excellent execution track record
Textile – Branded apparel will do well owing to pent up demand and fall in cotton prices
Cement – We expect recovery in cement demand led by infrastructure uptick and higher government spending. We believe that South-based cement companies will continue to outperform the sector led by a strong pricing environment
Consumer Sector – With the implementation of the 7th Pay Commission pay hike for (central and state)
government employees, combined with a good monsoon, consumption will get a boost
4
Emerging Markets – Back From The Brink
EMs Growth Differential Over US Is Positive & Rising Ems Manufacturing PMI Staging A Comeback
85
100
115
130
145
160
175
-1
0
1
2
3
4
5
Jan-02 Jan-05 Jan-08 Jan-11 Jan-14
(In
de
x, 1
00
= D
ec
em
be
r 2
00
2)
(%)
EM-US Growth Differential EMFX
The sharp rise in the aggregate EM PMI in July suggests that after a brief pause in Q2, the recovery in EM industry
resumed at the start of the third quarter
Markit’s EM manufacturing PMI index rose to 50.3 in July, from 49.3 in June. This was the strongest reading since
February of last year
The large EMs Brazil, Russia, India and China are now seeing growth differential over US expanding. This means
that the rebound rally in EMs is significant and would continue
India is witnessing the strongest growth rate among large EMs and is getting premium valuations
Source: Capital Economics Source: Edel Invest Research
35
40
45
50
55
60
35
40
45
50
55
60
05 06 07 08 09 10 11 12 13 14 15 16
Expansion
Contraction
5
Indications Of Growth Uptick In India
-20.00
-15.00
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00 Ju
l-1
1
Oc
t-1
1
Ja
n-1
2
Ap
r-1
2
Ju
l-1
2
Oc
t-1
2
Ja
n-1
3
Ap
r-1
3
Ju
l-1
3
Oc
t-1
3
Ja
n-1
4
Ap
r-1
4
Ju
l-1
4
Oc
t-1
4
Ja
n-1
5
Ap
r-1
5
Ju
l-1
5
Oc
t-1
5
Ja
n-1
6
Ap
r-1
6
Electricity Production Increasing Steadily
Coal 3MMA, YoY % Growth Electricity 3MMA, YoY % Growth
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
Ju
l-1
1
Oc
t-1
1
Ja
n-1
2
Ap
r-1
2
Ju
l-1
2
Oc
t-1
2
Ja
n-1
3
Ap
r-1
3
Ju
l-1
3
Oc
t-1
3
Ja
n-1
4
Ap
r-1
4
Ju
l-1
4
Oc
t-1
4
Ja
n-1
5
Ap
r-1
5
Ju
l-1
5
Oc
t-1
5
Ja
n-1
6
Ap
r-1
6
Infra Demand Proxies Are Robust
Steel 3MMA, YoY % Growth Cement 3MMA, YoY % Growth
Cement and Steel demand has been growing steadily as
Govt. infra push bears fruit
Electricity growth has been robust and indicates strengthening growth dynamics
-15.00
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
Ju
l-1
1
Oc
t-1
1
Ja
n-1
2
Ap
r-1
2
Ju
l-1
2
Oc
t-1
2
Ja
n-1
3
Ap
r-1
3
Ju
l-1
3
Oc
t-1
3
Ja
n-1
4
Ap
r-1
4
Ju
l-1
4
Oc
t-1
4
Ja
n-1
5
Ap
r-1
5
Ju
l-1
5
Oc
t-1
5
Ja
n-1
6
Ap
r-1
6
Production of Agri Base Commodity
Increasing
Fertilizers 3MMA, YoY % Growth
Source: Edel Invest Research
-47,000
-37,000
-27,000
-17,000
-7,000
3,000
13,000
23,000
33,000
-19%
-14%
-9%
-4%
1%
6%
11%
16%
Apr-14 Oct-14 Apr-15 Oct-15 Apr-16
LCV Monthly Volumes Are Trending Higher
Monthly LCV Units Sale(Right) 3MMA,YoY - LCV
6
Non-Plan CapEx As % of Budget Set To Rise, And Push Growth Up
13.77 14.59
18.45 18.54
22.96
17.91
30.19
24.44
28.91
25.9 25.96
22.63
0
5
10
15
20
25
30
35
31-06-2011 31-06-2012 31-06-2013 31-06-2014 31-06-2015 31-06-2016
% T
o B
E
Capital Expenditure As Percentage to Central Budgeted Estimates
Plan Capital Exp Non-Plan Capital Exp
At lowest level in last five
years, higher capex is
expected in coming quarters
for FY2016-17
Source: Edel Invest Research
7
Global QE Is Reaching Unprecedented Levels
0
50
100
150
200
250
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
(US$
bn
)
Monthly Fed, ECB and BoJ Asset Purchases
BoE Fed BoJ ECB
Approx $180bn
0
20
40
60
80
100
05
05
06
07
08
09
10
11
12
13
14
15
16
(% T
o G
DP
)
Central Banks Have Increased Their Balance
Sheet By More Than $13trn In 10 Years
Euro Area Japan UK US
The stepping up of quantitative easing in Eurozone and unprecedented interest rate cuts in other developed
economies have kept liquidity levels at record levels
The US Fed has abstained from raising interest rates citing either local economic slack or slower growth globally.
This has led to correction of divergence in monetary policy in the US and elsewhere
This has also led to resumption of flows into risky assets which includes Emerging Markets
Source: Edel Invest Research
8
Foreign Portfolio Investors Flock Emerging Markets As Volatility Declines
19
29
39
49
28
-Ju
l-1
5
11
-Au
g-1
5
25
-Au
g-1
5
8-S
ep
-15
22
-Se
p-1
5
6-O
ct-
15
20
-Oc
t-1
5
3-N
ov-1
5
17
-No
v-1
5
1-D
ec
-15
15
-De
c-1
5
29
-De
c-1
5
12
-Ja
n-1
6
26
-Ja
n-1
6
9-F
eb
-16
23
-Fe
b-1
6
8-M
ar-
16
22
-Ma
r-1
6
5-A
pr-
16
19
-Ap
r-1
6
3-M
ay-1
6
17
-Ma
y-1
6
31
-Ma
y-1
6
14
-Ju
n-1
6
28
-Ju
n-1
6
12
-Ju
l-1
6
26
-Ju
l-1
6
Emerging Markets ETF Volatility Index
CBOE Emerging Markets ETF Volatility Index
2.6
2.7
2.7
2.8
2.8
2.9
2.9
3.0
3.0
3.1
5
7
9
11
13
15
17
19
1-1
-20
16
1-1
5-2
01
6
1-2
9-2
01
6
2-1
2-2
01
6
2-2
6-2
01
6
3-1
1-2
01
6
3-2
5-2
01
6
4-8
-20
16
4-2
2-2
01
6
5-6
-20
16
5-2
0-2
01
6
6-3
-20
16
6-1
7-2
01
6
7-1
-20
16
7-1
5-2
01
6
7-2
9-2
01
6
EMs Bond Yields Have Softened
India 10 Yr Yield (LHS) Brazil 10 Year Yield(LHS)
Indonesia 10 Year Yield (LHS) China 10 Year Yield (RHS)
-5
-4
-3
-2
-1
0
1
2
3
4
5
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51
(US$
bn
)
Weekly Emerging-Market Bond Flows At
Highest Level in Year
Aug-15 Jan-16 Jun-16 Jul-16
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Jan -16 Feb -16 Mar -16 Apr -16 May -16 Jun -16 Jul -16
(US$ b
n)
Biggest Weekly Flows in ETF in Almost Last Two
Years
Source: Edel Invest Research
9
India 10 Year Yield Softens To 3 year Low
7
7.2
7.4
7.6
7.8
0
200
400
600
800
1000
1200
1400
1600 3
1-D
ec
7-J
an
14
-Ja
n
21
-Ja
n
28
-Ja
n
4-F
eb
11
-Fe
b
18
-Fe
b
25
-Fe
b
3-M
ar
10
-Ma
r
17
-Ma
r
24
-Ma
r
31
-Ma
r
7-A
pr
14
-Ap
r
21
-Ap
r
28
-Ap
r
5-M
ay
12
-Ma
y
19
-Ma
y
26
-Ma
y
2-J
un
9-J
un
16
-Ju
n
23
-Ju
n
30
-Ju
n
7-J
ul
14
-Ju
l
21
-Ju
l
28
-Ju
l
% C
ha
ng
e
INR
Bn
Daily sovereign bond turnover (LHS) Benchmark 10-year bond yield (RHS)
Indian sovereign bonds are in great demand among foreign funds and investors at home. The daily turnover
climbed to an unprecedented 1.43 trillion rupees ($21 billion) last week
Improving cash supply in India’s banking system and mounting speculation of a dovish new central banker have
spurred appetite for the securities locally, helping contribute to the biggest monthly rally in 10-year notes since
May 2013
Source: Edel Invest Research
10
Consumption Recovery To Gather Steam
Consumer Durable
we expect demand of white goods will increase after outflow of 7th pay commission
FMCG
Slightly positive for FMCG sector demand, major demand uptick would happen post good monsoon
Automobile
Employees are going to receive onetime arrear of 6 months and incremental pay of 23% that can push luxurious goods demand like auto, Jewellery, etc
Real Estate
Arrear and rise in salaries of 1cr employees can push affordable housing demand
Incremental Outflow of
INR ~85,000 cr till
the end of this year
including arrears and
incremental salary, plus
it would increase if
states implement 7th
Pay commission in this
financial Year itself
11
GST - Positive Impact on Different Sectors & Stocks
Sectors Stocks – Expected To Benefit from GST
Automobiles Maruti Suzuki, Hero MotoCorp, Bajaj Auto, Eicher Motors, Ashok Leyland
Consumer Durables CGCE, Havells, Voltas, Blue Star, Bajaj Electricals, Symphony, Hitachi
FMCG HUL, GCPL, P&G, Asian Paints, Berger Paints
Paints Asian Paints, Berger Paints, Kansai Nerolac, Akzo Nobel, BASF India
Sanitary HSIL , Cera Sanitaryware
Ceramic H&R Johnson (Prism Cements), Kajaria Ceramics
Ply Greenply, Greenlam Industries
Logistics VRL Logistics, GATI, Blue Dart, Transport Corporation of India, Snowman Logistics
Cement ACC, Ultratech, JK Cement, Shree Cement
Entertainment PVR, Inox Leisure, Dish Tv
Textiles/ Garments Arvind, Raymond, Page Industries
Nifty Hits 52 Week High, History Says Trend To Continue
Fresh 52 week high after March’15
Percentage of Nifty stocks above 200 DMA
Number of Nifty Stocks at 52 week high Number of Nifty Stocks at 52 week low
Nifty 52 Week High
Nifty 52 Week Low
13
Data Sets
14
EM Market Valuation – India Still Near Long Term Averages
P/E Ratio Current 5 Yrs Avrg 10 Yrs Avrg 2016E 2017E
MSCI EM 15.4 12.0 13.1 13.2 11.6
HANG SENG INDEX 11.0 10.3 12.5 12.3 11.1
SHANGHAI SE COMPOSITE 16.3 13.8 19.6 13.6 12.1
RUSSIAN RTS INDEX $ 7.5 5.4 6.6 7.2 6.2
KOSPI INDEX 17.1 15.3 14.7 11.1 10.1
TAIWAN TAIEX INDEX 16.4 16.9 18.2 14.5 13.2
Nifty 50 21.8 17.4 18.3 18.0 15.0
S&P BSE SENSEX INDEX 20.7 17.5 18.6 17.6 14.8
Source: Bloomberg
All data on basis of Calendar Year; * TTM(Trailing Twelve Months)
P/B Ratio Current 5 Yrs Avrg 10 Yrs Avrg 2016E 2017E
MSCI EM 1.5 1.5 1.8 1.4 1.4
HANG SENG INDEX 1.1 1.3 1.7 1.1 1.1
SHANGHAI SE COMPOSITE 1.6 1.7 2.5 1.4 1.4
RUSSIAN RTS INDEX $ 0.9 0.7 0.9 0.7 0.7
KOSPI INDEX 1.0 1.0 1.1 1.0 1.0
TAIWAN TAIEX INDEX 1.5 1.6 1.7 1.6 1.6
Nifty 50 3.0 2.6 3.2 2.8 2.8
S&P BSE SENSEX INDEX 3.0 2.7 3.4 2.8 2.8
15
Nifty & Sensex Consensus EPS
369 429
-30%
-20%
-10%
0%
10%
20%
30%
-1000
-800
-600
-400
-200
0
200
400
600
800
1000
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017(e)
Nifty EPS
YoY Growth (Right) Nifty EPS (Left)
Source: Bloomberg; Edel Invest Research
16
Banking Stress Peaking, Further Adverse Impact Limited
0%
3%
6%
9%
12%
15%
18%
21%
0
2000
4000
6000
8000
10000
12000
14000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E
PSU Bank Stress Assets
Total Stress in PSU banks (INR bn) (LHS) Gross NPA+ Rest assets (%) - PSU banks (RHS)
0%
1%
2%
3%
4%
5%
6%
7%
0
200
400
600
800
1000
1200
1400
1600
1800
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E
Private Bank Stress Assets
Total Stress in Private banks (INR bn) (LHS) Gross NPA+ Rest assets (%) - Private (RHS)
Source: Edel Invest Research
17
Industrial Production Subdued, Pace Set To Increase
-6.0 -4.0 -2.0
- 2.0 4.0 6.0 8.0
10.0 12.0 14.0 16.0
Ja
n-1
3
Fe
b-1
3
Ma
r-1
3
Ap
r-1
3
Ma
y-1
3
Ju
n-1
3
Ju
l-1
3
Au
g-1
3
Se
p-1
3
Oc
t-1
3
No
v-1
3
De
c-1
3
Ja
n-1
4
Fe
b-1
4
Ma
r-1
4
Ap
r-1
4
Ma
y-1
4
Ju
n-1
4
Ju
l-1
4
Au
g-1
4
Se
p-1
4
Oc
t-1
4
No
v-1
4
De
c-1
4
Ja
n-1
5
Fe
b-1
5
Ma
r-1
5
Ap
r-1
5
Ma
y-1
5
Ju
n-1
5
Ju
l-1
5
Au
g-1
5
Se
p-1
5
Oc
t-1
5
No
v-1
5
De
c-1
5
Ja
n-1
6
Fe
b-1
6
Ma
r-1
6
Ap
r-1
6
Ma
y-1
6
3MMA-By Production
IIP-3MMA Mining Total-3MMA Electricity Index-3MMA Manufacturing Total -3MMA
-25.0
-20.0
-15.0
-10.0
-5.0
-
5.0
10.0
15.0
20.0
Ja
n-1
3
Fe
b-1
3
Ma
r-1
3
Ap
r-1
3
Ma
y-1
3
Ju
n-1
3
Ju
l-1
3
Au
g-1
3
Se
p-1
3
Oc
t-1
3
No
v-1
3
De
c-1
3
Ja
n-1
4
Fe
b-1
4
Ma
r-1
4
Ap
r-1
4
Ma
y-1
4
Ju
n-1
4
Ju
l-1
4
Au
g-1
4
Se
p-1
4
Oc
t-1
4
No
v-1
4
De
c-1
4
Ja
n-1
5
Fe
b-1
5
Ma
r-1
5
Ap
r-1
5
Ma
y-1
5
Ju
n-1
5
Ju
l-1
5
Au
g-1
5
Se
p-1
5
Oc
t-1
5
No
v-1
5
De
c-1
5
Ja
n-1
6
Fe
b-1
6
Ma
r-1
6
Ap
r-1
6
Ma
y-1
6
3MMA-By Usage
IIP-3MMA Basic goods -3MMA Capital goods -3MMA Intermediate goods -3MMA Consumer goods -3MMA
Source: Edel Invest Research
18
Forex Reserves At Record High, Capacity Utilization Subdued
60
65
70
75
80
85
Ju
n-0
8
Oc
t-0
8
Fe
b-0
9
Ju
n-0
9
Oc
t-0
9
Fe
b-1
0
Ju
n-1
0
Oc
t-1
0
Fe
b-1
1
Ju
n-1
1
Oc
t-1
1
Fe
b-1
2
Ju
n-1
2
Oc
t-1
2
Fe
b-1
3
Ju
n-1
3
Oc
t-1
3
Fe
b-1
4
Ju
n-1
4
Oc
t-1
4
Fe
b-1
5
Ju
n-1
5
Oc
t-1
5
Capacity utilisation %
Capacity utilisation %
-14%
-7%
0%
7%
14%
21%
28%
35%
42%
-5,000
-3,000
-1,000
1,000
3,000
5,000
7,000
9,000
11,000
13,000
Ju
n-0
2
Ja
n-0
3
Au
g-0
3
Ma
r-0
4
Oc
t-0
4
Ma
y-0
5
De
c-0
5
Ju
l-0
6
Fe
b-0
7
Se
p-0
7
Ap
r-0
8
No
v-0
8
Ju
n-0
9
Ja
n-1
0
Au
g-1
0
Ma
r-1
1
Oc
t-1
1
Ma
y-1
2
De
c-1
2
Ju
l-1
3
Fe
b-1
4
Se
p-1
4
Ap
r-1
5
No
v-1
5
No. of projects Under Impl. Vs Growth
No. of projects Under Implementation(Left) YoY Growth (Right)
46
48
50
52
54
Ju
l-1
3
Se
p-1
3
No
v-1
3
Ja
n-1
4
Ma
r-1
4
Ma
y-1
4
Ju
l-1
4
Se
p-1
4
No
v-1
4
Ja
n-1
5
Ma
r-1
5
Ma
y-1
5
Ju
l-1
5
Se
p-1
5
No
v-1
5
Ja
n-1
6
Ma
r-1
6
Ma
y-1
6
India's PMI
India's PMI
36
3
36
0
36
1
0
50
100
150
200
250
300
350
400
Ma
r-1
3
Ma
y-1
3
Ju
l-1
3
Se
p-1
3
No
v-1
3
Ja
n-1
4
Ma
r-1
4
Ma
y-1
4
Ju
l-1
4
Se
p-1
4
No
v-1
4
Ja
n-1
5
Ma
r-1
5
Ma
y-1
5
Ju
l-1
5
Se
p-1
5
No
v-1
5
Ja
n-1
6
Ma
r-1
6
Ma
y-1
6
USD
Bn
Total India's Foreign Exchange Reserves at
Highest level
Total India's Foreign Exchange Reserves
Source: Edel Invest Research
19
Auto Sales remain robust
-1,65,000
-95,000
-25,000
45,000
1,15,000
1,85,000
2,55,000
3,25,000
-10%
-5%
0%
5%
10%
15%
Ap
r-1
4
Ju
n-1
4
Au
g-1
4
Oc
t-1
4
De
c-1
4
Fe
b-1
5
Ap
r-1
5
Ju
n-1
5
Au
g-1
5
Oc
t-1
5
De
c-1
5
Fe
b-1
6
Ap
r-1
6
PC Sales
Total Monthly PC Units Sale (Right)
3MMA, YoY% Growth - Passenager Vehicle
-1,00,000
-60,000
-20,000
20,000
60,000
1,00,000
-28%
-21%
-14%
-7%
0%
7%
14%
21%
28%
Ap
r-1
4
Ju
n-1
4
Au
g-1
4
Oc
t-1
4
De
c-1
4
Fe
b-1
5
Ap
r-1
5
Ju
n-1
5
Au
g-1
5
Oc
t-1
5
De
c-1
5
Fe
b-1
6
Ap
r-1
6
Ju
n-1
6
CV Volume Monthly Sale
Total Monthly CV Units Sale (Right) 3MMA, YoY - Total CV (Left)
-30,000
-10,000
10,000
30,000
50,000
70,000
-20%
-10%
0%
10%
20%
30%
40%
50%
Ap
r-1
4
Ju
n-1
4
Au
g-1
4
Oc
t-1
4
De
c-1
4
Fe
b-1
5
Ap
r-1
5
Ju
n-1
5
Au
g-1
5
Oc
t-1
5
De
c-1
5
Fe
b-1
6
Ap
r-1
6
Ju
n-1
6
MHCV Monthly Volume Sale
Monthly MHCV Units Sale(Right) 3MMA, YoY - MHCV (Left)
-47,000
-37,000
-27,000
-17,000
-7,000
3,000
13,000
23,000
33,000
-19%
-14%
-9%
-4%
1%
6%
11%
16%
Ap
r-1
4
Ju
n-1
4
Au
g-1
4
Oc
t-1
4
De
c-1
4
Fe
b-1
5
Ap
r-1
5
Ju
n-1
5
Au
g-1
5
Oc
t-1
5
De
c-1
5
Fe
b-1
6
Ap
r-1
6
Ju
n-1
6
LCV Monthly Volume Sale
Monthly LCV Units Sale(Right) 3MMA,YoY - LCV
Source: Edel Invest Research
20
EM and Developed Market Performance
Source: Edel Invest Research, Bloomberg; Data as of 30-Jun-16
21
Edelweiss Mid-Cap Marvels
S.No Stock Name CMP
(INR)
Mkt Cap
(INR Crs) P/E (X) EV/EBITDA (X) ROE (%)
(INR) (INR Cr) FY17E FY18E FY17E FY18E FY17E FY18E
1. Cholamandalam Finance 1,153 17,995 23.1 19.0 NA NA 18.5 18.6
2 NIIT Ltd. 79 1,355 14.7 10.8 14.3 10.8 8.6 12.9
3. Indo Count Industries Ltd. 880 3,466 10.1 8.4 1.1 0.6 43.2 37.5
4. Indian Terrain Fashions Ltd. 163 625 18.4 15.5 10.7 8.9 18.7 18.0
5. Jamna Auto Industries Ltd. 195 1,563 15.1 13.1 8.3 7.1 36.6 32.5
6. Natco Pharma Ltd. 603 10,647 20.2 23.7 13.7 15.1 33.2 21.8
7. Siyaram Silk Mills Ltd. 1,030 938 8.8 7.3 6.0 5.1 19.5 20.0
Note: Market CAP (Mkt CAP) and Current Market Price (CMP) were last recorded on 2nd August, 2016
22
Edelweiss Focus-12
S.No Stock Name CMP (INR)
Mkt Cap (INR Crs)
P/E (X) EV/EBITDA (X) ROE (%)
(INR) (INR Cr) FY17E FY18E FY17E FY18E FY17E FY18E
1. Aditya Birla Fashion and Retail Ltd 145 11,314 65.7 36.2 21.8 17.0 14.0 19.0
2. Dalmia Bharat Ltd. 1,438 12,831 26.3 19.3 10.0 8.5 10.8 13.1
3. Infosys Ltd. 1,084 2,49,276 16.0 14.1 10.7 9.2 24.2 26.2
4. Larsen & Toubro Ltd. 1,503 1,39,236 34.2 25.1 8.9 7.8 8.7 11.0
5. Maruti Suzuki India Ltd. 4,986 1,47,000 22.0 18.9 12.2 10.3 22.1 21.7
6. Tata Motors Ltd. 493 1,63,550 9.9 9.3 4.2 3.7 18.5 16.5
7. Repco Home Finance Ltd. 861 5,330 27.5 22.5 NA NA 18.4 19.0
8. Strides Arcolabs Ltd. 1,145 10,152 22.5 18.5 13.5 11.5 9.9 10.9
9. Sun Pharma Industries Ltd. 829 2,01,120 23.6 20.0 16.6 13.2 24.1 23.4
10. United Spirits Ltd. 2,390 34,655 66.4 41.2 34.1 25.4 26.0 31.3
11. Zee Entertainment Enterprises Ltd. 500 48,481 39.8 32.7 25.0 20.8 28.4 28.2
CMP as on 2nd August 2016
23
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