Best Shares To Buy For Short Term In December 2018

Best Shares To Buy For Short Term

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 Dec 2018, read Best Short Term Stocks To Buy Today if you are looking to buy shares today.

Best Shares To Buy For Short Term In December 2018

Sonata Software Ltd. (NSE:SONATASOFT) (Share Price: Rs.310): Potential Buy

Valuation: Undervalued with TTM PE of 14.61x

Reasons to consider: Company posted revenue growth of ~13% for last five years. It has improved DE to 0.02x in FY18. Cash flow per share stood at Rs 28.63/share in FY18. In Q2FY19, IT service revenues in constant currency grew 4.0% QoQ, dollar revenues increased 3.4% QoQ, better growth & addition of two new clients fuels Europe revenue growth by 7% QoQ.

Drivers: Improving growth in IT services and strong pipeline to boost revenues. Companys digital revenues to gain traction over the coming years led by its platformisation and alliance led strategy. Also, the company has strong deal pipeline and has won USD 1.5 million new deals in H1FY19.

Financial: In Q2FY18, revenue grew by 38.9% YoY to Rs 593.1 crores. EBITDA grew by 35.2% YoY to Rs 74 crores. PAT grew by 37.1% to Rs 62.2 crores.

Jubilant Life Sciences (NSE: JUBILANT) (Share Price: Rs.740): Potential Buy

Valuation: Undervalued with TTM PE of 14.63x.

Reasons to consider: The company posted robust numbers in Q2FY19. The pharma segment grew 55% YoY and LSI segment also grew generously at 20%. Overall performance boosted by generic pharma, LSI and the integration of Triad pharmacies. The management expects H2FY19 to be much better in terms of revenue and profitability; led by growth across segments.

Drivers: Better pricing environment in generic segment, re-priced ethanol contracts from govt , commissioning of the new block for acetic anhydride, gaining market share in venoms and radio pharma and new sterile line in CMO augurs well for the company.

Financial: In Q2FY19, revenues were up 38.2% YoY to Rs 2270 crores. EBITDA came in at Rs 454 crores. PAT was at Rs 209 crores, up 67% YoY. EPS stood at Rs 13.5/share.

VIP Industries Ltd. (NSE: VIPIND) (Share Price: Rs.514): Potential Buy

Valuation: Overvalued with TTM PE of 45.68x

Reasons to consider: The Company enjoys more than 50% market share in organised market. VIP Industries manufactures a wide range of hard and soft-sided luggage under brands such as VIP, Skybags, Alfa, Aristocrat, Carlton, and Caprese. The company posted healthy numbers in last five years.

Drivers: Growth in the aviation industry is an important factor that drives the luggage industry's performance. In June, India's domestic passenger traffic grew 18.4 percent YoY and domestic passenger traffic expanded at a CAGR of 13% during FY13-FY17. GST implementation benefits organised players like VIP.

Financial: In FY18, revenue grew by 12.6% to Rs 1410 cores. Operating margin expanded to 14.53%. PAT grew by 49% to Rs 126.75 crores. EPS stood at Rs 8.97/ share.

Nocil (NSE: NOCIL) (Share Price: Rs.163): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Undervalued stock with TTM PE of 13.5x.

Reasons to consider: The company reported healthy numbers in H1FY19. Its a cash rich and debt free company. Capex- Rs 170 cr. The company has completed phase I of New Mumbai capex is commissioned and operational. Expansion at Dahej is expected to commission by Q3FY19. Considering high demand, the company has announced capex plan of Rs 255 crores in phase II; which is expected to commission by H1FY20. Expansion is expected to give an Asset Turnover of 2X.

Drivers: The company is in business of rubber chemicals which has application in tyre and rubber product industry. Tyre industry is growing led by growth in auto industry and imposition of anti-dumping duty on radial Tyres.

Financial: In H1FY19, revenue grew by 22% YoY to Rs 540 crores. EBITDA margin expanded by 482 bps YoY to 29.4%. Net profit grew by 42.6% YoY to Rs 104 crores.

Hindustan Unilever Ltd. (NSE: HINDUNILVR) (Share Price: 1677): Potential Buy

Valuation: Overvalued with TTM PE of 63.25x

Reasons to consider: HUL is a big player in FMCG sector and fundamentally strong. Company is offering its employees a range of exposure opportunities, from immersive experiences with other companies to exposure to new-age technologies and work culture, so as to make them future-ready. Companys new initiative will be beneficial to company in long run.

Drivers: Booming rural segment bodes well for the company. The surge in agribusiness and rural sales has been the driving factor of the future growth potential of FMCG businesses in India. Rural contributes 35-40 percent of overall sales value. HUL operates in three segments of Homecare, beauty care, and foods solutions business. Of this, the home care and beauty care products are widely distributed in rural and semi-rural areas too, given the rising youth lifestyle aspirations of rural India.

Financial: The company posted revenue of Rs 35,550 crores in FY18 vs Rs 33,252 crores in FY17. ROCE and ROE stood at 102% and 75% respectively in FY18. Net profit grew by 16.41% to Rs 5227 crores in FY18 and EPS is Rs 24.14/ share.

Uflex (BSE: UFLEX) (Share Price: Rs.286): Potential Buy

Valuation: Undervalued with TTM PE of 7.09x.

Reasons to consider: The company posted healthy numbers in FY18 and H1FY19 as well. High margin Aseptic's margins would benefit company at margin front.

Drivers: Uflexs Aseptic revenues are expected to start from H2FY19. Uflex will be the second player in the segment in India after Tetra Pack. The company expects to garner market share of 23-24%. Capex, continuous innovation and product portfolio expansion poised well for growth.

Financial:In Q2FY19, the company reported revenue of Rs 1204 crores vs Rs 1157 crores in Q2FY18. Operating margin turn out negative owing to high cost. The company posted negative net profit since last three quarters.

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