Best Shares To Buy For Short Term In May 2018
May 01, 2018 | 18:40 PM IST
May 01, 2018 | 18:40 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 May 2018, read Best Short Term Stocks To Buy Today if you are looking to buy shares today.
Best Shares to Buy For May 2018
Best Shares to Buy For May 2018: 4th Week
Avanti Feeds (NSE: AVANTIFEED) (Share Price: Rs.2482): Potential Buy (10 Steps To Pick The Best Stocks)
Valuation: Undervalued stock as compared to close peers with trailing PE of 25.19x.Reasons to consider: Avanti feeds is a lead exporter of prawn & fish feed and shrimp processor from India. The company has grown at ~47% CAGR over the last five years. The company recorded strong financial numbers in last five years and in Q3FY18 as well owing to the rise in seafood demand over other forms of meat.Drivers: India is well placed with the natural coastal line for this industry. The first crop of shrimp is progressing well. Also, international shrimp prices are reasonably stable which creates a win-win situation for the company. Also, the company is going to announce shares split and bonus shares at their board meeting on 9th May 2018.Financial: During Q3FY18, consolidate revenue, EBITDA and net profit grew by 32%/ 131%/ 127% respectively. EPS stood at Rs 9.74 / share.
Capacite Infraprojects (NSE: CAPACITE) (Share Price: Rs.361): Potential buy
Valuation: Overvalued stock as compared to close peers with trailing PE of 35.52x.Reasons to consider: Capacite Infraprojects is the fastest growing construction company. The company focuses on residential, commercial and institutional buildings. The company has grown with CAGR of ~86% over the last three years.Drivers: The company has a healthy order book of ~Rs.6024 crores as on date with repeated client base and exclusive focus on MMR, NCR, Pune, Hyderabad, Bengaluru, Chennai and Kochi. It provides revenue visibility at ~4.5x. Strong, experienced management team and modern system framework worked well for the companys growth.Financial: Strong financial performance over last four years shows financial strength of the company. Revenue grew from Rs.214 crores in FY14 to Rs.1157 crores in FY17. PAT also grew to Rs.70 crore in FY17 from Rs.4.1 crore in FY14. In 9MFY18, the company posted robust numbers. Total income, EBITDA and PAT grew by 16.4%/ 12.2%/ 33% respectively. Meanwhile, EBITDA margin expanded by 73 bps points. EPS stood at Rs.10.43/ share.
Best Shares to Buy For May 2018: 3rd Week
L&T Financial Holding (NSE: L&TFH) (Share Price: Rs.166): Can be considered
Valuation: Overvalued as compared to close peers with trailing PE of 24.18x and PB of 2.70x.Reasons to consider: Newly appointed MD in July 2016, has a sole focus to achieve ROE of 20% by FY20. ROE of the company is improving continuously to 15.91% in Q3FY18 from 9.09% in Q1FY16. L&TFH committed to achieving its ROE target by cutting down defocused business and focusing on its core business area. It also has robust loan book with strong growth record from every segment (22.6% YoY in Q3FY18).Drivers: Strong parentage from management, the company would be able to grow business in future as well on account of good traction from microfinance, real estate and housing finance segment. The company also improved GNPA 31 bps QoQ. Improving asset quality, strong parentage and controlled expenses poised well for companys growth.Financials: In Q3FY18, disbursement grew by 87.9% YoY leading to strong loan book growth of 22.6% YoY. Net interest margin improved by 67 bps QoQ to 6.85% led by rural and housing segments. On asset quality, GNPA improved by 352 bps QoQ to 5.49% and NNPA improved by 443 bps QoQ to 2.87%. AAUM in Investment Management business increased 71.4% YoY.
Best Shares to Buy For May 2018: 2nd Week
Bandhan Bank (NSE:BANDHANBNK) (Share Price: Rs.529): Can be considered
Valuation: Overvalued stock as compared to close peers with trailing PE of 57.13x and PB of 7.14x.Reasons to consider: Bank has unique business model focused on serving underbanked and underpenetrated markets. Consistent track record of growing quality asset and liability franchise. Bank has a cost-efficient distribution network. Bank recorded consistent financial performance since last two years. Drivers: Banks unique model is ideal for financial inclusion drive by the government with 55% of branches in the rural area. The experienced management team can drive ROE more than 14% in coming years.Financials: In 9MFY18, the bank has earned NIM of 9.86%. The cost to income ratio stood at 35.38%. ROA stood at 4.07%. Gross advances increased by 33% while net interest income grew by 27% and profit after tax increased by 21% on YoY basis.
Best Shares to Buy For May 2018: 1st Week
Adani Enterprises (NSE: ADANIENT) (Share Price: Rs.148): Can be considered
Valuation: Stock is overvalued with PE multiple of 23x.Reasons to consider: Company has low interest coverage ratio. Company has delivered poor growth of -1.06% over last five years. ROE of the company is low as compared to close peers.Drivers: Promoter's have pledged 28.91% of their holdings. Company has contingent liabilities of Rs. 7206 cr. Adani Enterprices recently sold 100% stakes in subsidiary firm Adani Energy Ltd. Kindly be in touch with news.Financials: Q3FY18 was much better. Company has posted good numbers and have shown intent of improvement. But considering Q2FY18, it looks difficult for the company management to match last year's performance.