Best Shares To Buy For Short Term In June 2018

JM Financial (NSE: JMFINANCIAL) (Share Price: Rs.132): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Undervalued stock with trailing PE of 17.39x as compared to close peers.

Reasons to consider:The company registered 37% growth in revenue in FY18 and 25% growth in net profit. Also, it forayed into SME lending which has shown good performance. Strong profitability, adequate capitalization and comfortable asset quality shows financial strength of the company.

Drivers: The company having diversified financial service profile with strong brand image. Ramp up in fund based lending business in past three years augur well for company's growth.

Financial: In Q4FY18, revenue of the company increased to Rs.80 cr in Q4FY18 (vs Rs 11.4 cr in Q3FY18). Net profit increased to Rs 49 cr in Q4FY18 . EPS rose to Rs.0.61/share.

Bharat Electronics (NSE: BEL) (Share Price: Rs.125): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Overvalued stock with trailing PE of 18x as compared to close peers.
Reasons to consider: The company posted healthy numbers over last five years. ROE improved to 17.63% from 14.52% in FY13. Slow down in order inflow and shrinking operating margin impacted the company. BEL is Indias one of the largest PSU in defence segment. It is a key beneficiary in defence capital expenditure. The company has a competitive profile.
Drivers: Upcoming orders in H1FY19 from Akash (about Rs.60 bn), LR SAM- 7 ships (Rs 90 bn) can pace up the order inflow. The company also has many large projects in hand with revenue visibility till FY21. Its order book is slated to grow over the next few years because of steady demand for its existing product range, potential orders from high-value projects (e.g., tactical communication systems) and growth opportunities in the non-defence/export segments.
Financial: Revenue of the company increased to Rs.8654 cr in FY17 from Rs.6272 cr in FY13. EBITDA margin expanded to 25.56% in FY17 from 20.53% in FY13. EPS rose to Rs.6.20/share from Rs.3.45/share in FY13.

Ganesha Ecosphere (NSE: GANECOS) (Share Price: Rs.636): Potential Buy

Valuation: Overvalued stock with trailing PE of 25.29x as compared to close peers.
Reasons to consider: Revenue of the company grow at CAGR of 11.8% over last five years. Company reduced debt to 0.35x from 1.82x in FY14. The company is financially sound.
Drivers: The company has received an approval for the allotment of 26,52,520 equity shares of face value of Rs 10 each at a price of Rs 377 per share (including premium of Rs 367 per equity share) to raise upto Rs 100 crore. The company is one of Indias key player in PET recycling industry which having potential to capture untouched market.
Financial: In Q3FY18, revenue of the company increases to Rs 180 cr vs Rs 169 cr YoY. Operating profit is up to Rs 22 cr vs Rs 20.78 cr in Q3FY17. EPS stood at Rs 4.83/ share as against Rs 3.86/share.

Apex Frozen Food (NSE: APEX) (Share Price: Rs.636): Potential Buy

Valuation: Overvalued as compared to close peers with trailing PE of 81.36x.
Reasons to consider: Higher capacity with better utilization. Diversified geographical mix with the USA, UK and EU zone. New processing plant t in Ragampeta, East Godavari, with a total capacity of 20,000 MTPA is expected to be commissioned in Q2FY19. This capacity expansion will cater to growing demand.
Drivers: Increase in seafood intake. Seafood industry growing led by aquaculture production. Rising demand for Shrimp and Tuna in the USA (20-22% in 2020P) is driving its market share increase in consumption, globally. India is gaining market share on the back of its quality output at competitive prices.
Financial: Total income has grown at CAGR of 29% over last five years. EBITDA margin expanded to 7.8% in FY17 led by growing in-house farming and share of VAP. PAT grew at a CAGR of 28% over last five years. The company improved DE to 0.09x as of now from 1.14x in FY17.