*Tata Motors (Rs 422)* is exhibiting a bullish chart pattern and the trend, in all time frames, is in an upward direction. Today the share made a high point on good volumes. The share has a minor resistance at Rs.450 in the short term, but the scrip is on track to make higher highs to Rs.500 in the next 1-2 months. Buy

Tata Motor: *Can make new 52 week high*

Q4: Huge beat over CNBC estimates:
1) Sales can be more than 80,000 cr vs CNBC est 74000 cr

2) Ebidta margin can be 15.20% vs CNBC est 13.70%

3) Ebidta can be more than 12000 cr vs CNBC est 10211 cr

4) *PAT can zoom to 5100+ cr vs CNBC est 3602cr*, massive 40% up

5) Jaguar Ebidta 16%

Stock can rise how our recommendation B Auto has risen from 2386 to 2600

*Hot Sell*

Shipping Corpn of India:
Q4 Results today:
SCI is sailing in choppy seas. SCI is set to announce horrible results for Q4 today:

*Q4 should have LOSS of more than 10crores as against NP of 101 cr in quarter ended March15*
Thus there is turn back of 110 crores YoY.
ICICI Direct estimates Q4 PROFIT at 135 crores. Thus, Big miss even here

*Another big setback*
It is reliably learnt that SCI's long-standing and big client ONGC has already served notice to SCI to end their contract ( one month notice required) as ONGC getting cheaper rates from a Chinese co. Loss of ONGC biz can be a big setback to fortunes of SCI.
Intraday TP Rs 61-63.
Rs 55-56 in June
SELL SELL

*This info should be as accurate as our info on Cipla, B Auto,Icici Axis,Exide*

CLSA ON PFC

Downgrade from Underperform to SELL;  cut target to Rs 155 from Rs 190

Profit fell by 19% YoY due to higher credit costs and weaker topline

Management sees potential for upgrades from restructured loans at 14%

Loan growth will stay weak as UDAY scheme is fully implemented

Slower rollout of UDAY can drive upside to 'reported' earnings

Investment in Tier II PSU banks' bonds dilutes capital allocation standards

RBI's offering of differentiated bank licence to long-term financiers will need to be watched out.

Shree Ajit Pulp and Paper Ltd(538795):

*Achche Din due to E-commerce boom*

Gujarat based SAPPL is engaged in production of Multi Layer Test Liners and M G Kraft paper with installed capacity of 90,000 tonnes. SAPPL has been doing well and stock looks undervalued at PERatio of 5.50xFY16Eeps of Rs 22(co has already achieved Eps of Rs 17.30 for 9 months:

            

            9m/FY16. FY15

Sales     166.       189

Dep.      3.86.       5.11

Interest  3.03.      4.48

PBT.       13.61.    9.88

PAT.        9.26.      7.12

Equity.                   5.35

BV.                         141

EpsRs.   17.30   13.30

SAPPL uses waste paper to produce Kraft paper which is mainly used by packaging industry including corrugated box mfrs. 

SAPPL has been doing extremely well in current year as *NP of 9 months is higher than NP of entire FY15*

*Stock is trading at 5.50xFY16Eeps and .85 Book Value*

MAIN TRIGGER/BRIGHT FUTURE: Due to unprecedented E-commerce boom, demand for corrugated boxes has zoomed which in turn had led to surge in demand of Kraft Paper. As a result,  *price of Kraft paper have risen 20% in last 2-3 months*

Recently Mr Dey, President of EICBMA had stated that " Recent hike of 20-25% in Kraft paper is unjustified due to shortage as production cost of Kraft paper have not gone up"

Co like SAPPL will be main beneficiary of sharp rise in Kraft paper prices.

*SAPPL can report Eps of 28 for FY17*

Stock is highly undervalued considering:

1) Trading@ 5.50xFY16Eeps

2)Quoting @.85Book Value

3) Book Value should further rise to Rs 160 as on 31st March2016

4) *Stock is tdg @4.30xFY17Eeps*

By all parameters, Shree Ajit Pulp is highly undervalued. If stock gets modest PERatio of just 8, it's share price should cross Rs 200 in next 6-9 months

*Q4 NP can grow 28% YoY*

Bajaj Auto Ltd Q4 result today:

1) Q4 NP should be nearly 800 crores as against 621 crores in quarter ended March15, decent growth YoY

2) FY16 NP should be more than 3600 crores as against 2814 cr for FY15

Stock is attractively priced as:
Month high Rs 2585
Weekly high Rs 2475
52week high Rs 2655

*TP Rs 2454 intraday. Rs 2508 May expiry*