Best Shares To Buy For Short Term In January 2018
Jan 01, 2018 | 19:07 PM IST
Jan 01, 2018 | 19:07 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 January 2018, read Best Short Term Stocks To Buy Today if you are looking to buy shares today.
Best Shares to Buy For January 2018
JM Financials (NSE: JMFINANCIL) (Share Price: Rs.150)
Stock Tip: Can be considered 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.
NOCIL (NSE: NOCIL) (Share Price: Rs.182)
Share Tip: Potential Buy Valuation: Undervalued stock with PE of 12.75x.Reasons to consider: Stock is still undervalued and has great potential as far as valuation and business model is concerned. Optimum utilisation of new plant helped in enhancing earnings.Drivers: Looking at the numbers, 60 65% of the global consumption of rubber is by automotive tyres, with the rest used in - footwear production, latex products, cycle tyres and tubes, and OTR tyres among others. It supplies all domestic tyre manufacturers in addition to several international tyre companies and has around 3,200 clients in the non-tyre segment.Financial: In FY17 company had delivered strong growth in term of earnings whereas net income surged by 54%. Q1FY18 was remarkable too with the rise of 46% in the net earnings. The company has managed to reduce debt from Rs.150 crore in FY15 to Rs.19 crore in FY17.
Apollo Tyres (NSE: APOLLOTYRE) (Share Price: Rs.249.60) Share Market tips: Can be considered
Valuation: Undervalued with trailing PE of 18.78x as compare to closed peers.Reason to Consider: The company is going through CapEx plans which can be seen in FY19/FY20 earnings. Currently, the rise in raw material prices and weak European market performance impacted earnings on YoY basis but QoQ basis raw material prices are stable which would support EBITDA margin on QoQ basis. Drivers: Government imposes Anti-dumping duty on Chinese Tyres which would aid volume growth in future. Also, stable raw material prices on QoQ basis would give stable margins in the forthcoming financial year.Financials: In Q2FY18, revenue grew by 5.9% QoQ and 12.7% YoY to Rs 3476 crores. EBITDA margin stood at 10.5% vs 8.4% in Q1FY18. PAT grew by 58.8% QoQ to Rs 140 crores.
KEC International (NSE: CMP: 313) (KEC)
Share Tip: Can be considered Valuation: Fairly valued with trailing PE of 23.67x as compared to close peersReasons to consider: Government of India recently launched Saubhagya scheme which aims at Power for all across the country by December 2018. This scheme would be beneficial for the company as it is one of the prominent players in power transmission and distribution.Drivers: The company is sitting on a heavy order book as of date worth approximately Rs.14,500 crores at domestic and international front. Also, the company gets most of the orders form Power Grid Corporation which helps in providing transmission lines to villages. Power Grid Corporation is also the beneficiary of Saubhagya scheme.Financial: The company registered growth of 6% Y-o-Y in Q1FY18 in revenue. PAT rose by whopping 104% Y-o-Y to Rs 63 crores. EBITDA margin improved to 9.3% in Q1FY18 vs 8.4% in Q1FY17.