Best Shares To Buy For Short Term In February 2018
Feb 01, 2018 | 19:02 PM IST
Feb 01, 2018 | 19:02 PM IST
In general, Short-Term investments are considered to be riskier than long term investments. But, short-term investments are important for making more profit from cash savings or liquid assets. Below were the best stocks to buy in February 2018, read Best Short Term Stocks To Buy Today if you are looking to buy shares today.
Share Market Tips For February 2018
Best Shares To Buy For February 2018: 4th Week
Poddar Pigment (NSE: PODDARMENT) (Share Price: Rs.306) Share Market tips: Can be considered
Valuation: Undervalued stock as compared to close peers with trailing PE of 16.44x.Reason to Consider: Company is cash-rich which gives room for organic and inorganic expansion and growth in future. Undervalued status of the company as compared to peers like Sudarshan Chemicals (PE- 40.44x) and Ultramine Pigments (PE- 27.6x) makes it more attractive.Drivers: Company is in the manufacturing of colour and additives for dyeing of synthetic fibres, packaging, plastic products, cables etc which caters to consumer industry. These industry segments are always in demand in which company is well placed.Financials: In FY17, the company reported revenue of Rs 329 crores vs Rs 325 crores in FY16. It is a zero debt company. ROCE and ROE stood at 24% and 17%. EBITDA margin improved to 9.68% from 8.78% in FY16. EPS stood at Rs 19.22 vs Rs 17.29 in FY16.
Best Shares To Buy For February 2018: 3rd Week
Sandur Manganese & Iron Ores (NSE: 504918) (Share Price: Rs.1336) Share Market tips: Can be consider
Valuation: Undervalued as compared to close peers with trailing PE of 13.95x.Reason to Consider: The company witnessed sales growth since last three years at CAGR of around 12%. Also, it has shown operational efficiency by improving margin to double-digit up to 20% as compared to last two years which results in earnings growth.Drivers: The growth in the production of manganese ore in India is highly correlated to the growth in the production of steel. Considering push for infrastructure, realty and rise in auto demand driving steel sector demand; which is a positive sign for manganese and iron ore industry.Financials: It is zero debt company. In FY17, revenue grew by 57% to Rs.422 crores. ROE and ROCE stood at 14.22% and 23.63% respectively. Operating margin grew to 24.56%. It reported FEPS of Rs 62.22/per share vs Rs.8.44/per share in FY16.
Share Market Tips For February 2018: 2nd Week
JM Financials (NSE: JMFINANCIL) (Share Price: Rs.164) Share Market Tip: Can be considered (10 Step Process To Confirm If Its A Buy)
Valuation: Overvalues with trailing PE of 22.22x.Reasons to Consider: The company has posted continuous growth since last five years at five-year CAGR of ~21% in revenue front. The company also has healthy dividend payout ratio.Drivers: Diversified business model in NBFC sector serves well for the company. Its lending profile growing on account of real estate growth under various government norms like RERA and Affordable Housing. ARS business of the company is in a sweet spot.Financials: Gross income stood at Rs.2,359 crores in FY17 vs Rs.1,684 crores in FY16. AUM grew to Rs.1,2469 crores in H1FY18 vs Rs.11,874 crores in FY17. PAT grew to Rs.470 crores in FY17 vs Rs 400 crores in FY16.
UPL (NSE: UPL) (Share Price: Rs.770) Share Market tips: Can be considered
Valuation: Fairly valued as compared to closed peers with trailing PE of 20.78x.Reasons to Consider: Diversified fully integrated agrochemical player with a footprint across the globe. Healthy and improving operating margin to ~21% since last two years. Higher return on equity of 37% shows financial strength of the company. Sales are growing with CAGR of 16% since last five years.Drivers: Global agrochemical demand drives the sales growth of the company aided by strong global footprint. Product portfolio fits well in industry tailwind.Financial: Sales grew by 16% in FY17 to Rs.16,312 crores. Operating margin stood at 21.31% while PAT margin stood at 10.42% in FY17. PAT of the company registered growth of 69% to Rs.1,752 crores in FY17.