Best Shares To Buy For Short Term In June 2019
Jun 11, 2019 | 18:02 PM IST
Jun 11, 2019 | 18:02 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 June 2019, read Best Short Term Stocks To Buy Today if you are looking to buy shares today.
Navneet Education Ltd(NSE: NAVNETEDUL) (Share Price: Rs.108.8 ): Potential Buy
Valuation:Fairly-Valued stock with TTM PE of 14x.
Reasons to Consider: Navneet reported healthy revenue growth in a seasonally weak quarter for the publications segment. Overall revenues grew 15.5% YoY to Rs 245.5 crore. On the segmental front, revenues from publishing segment grew 14.4% YoY to Rs 62.2 crore while revenue from the stationery segment increased 16.0% YoY to Rs 182.9 crore. Growth in the publication segment was driven by higher sales of 21 most likely questions owing to syllabus change in Maharashtra for X standard. EBITDA margins improved marginally by 30 bps YoY to 11.5% on lower raw material expenses down 80 bps YoY. Higher finance cost up 145.9% YoY, owing to an increase in inventory in anticipation of a spike in paper prices impacted PAT down 2.3% YoY to Rs 14.7 crore.
Key Drivers: Navneet reported healthy revenue growth in a seasonally weak quarter for the publications segment. Overall revenues grew 15.5% YoY to Rs 245.5 crore. On the segmental front, revenues from publishing segment grew 14.4% YoY to Rs 62.2 crore while revenue from the stationery segment increased 16.0% YoY to Rs 182.9 crore. Growth in the publication segment was driven by higher sales of 21 most likely questions owing to syllabus change in Maharashtra for X standard. EBITDA margins improved marginally by 30 bps YoY to 11.5% on lower raw material expenses down 80 bps YoY. Higher finance cost up 145.9% YoY, owing to an increase in inventory in anticipation of a spike in paper prices impacted PAT down 2.3% YoY to Rs 14.7 crore.
Financial: Total revenue Rs 246 cr in Q4FY19 vs Rs 212 cr in Q4FY18 up 15%. PAT at Rs. 14.7 cr in Q4FY19 vs Rs 15.1 cr in Q4FY18 down 2.3%. Ebitda stands at Rs.28 cr in Q4FY19 up 18.7% vs Rs. 23.8 cr in Q4FY18.
V-Guard Industries Ltd(NSE: VGUARD) (Share Price: Rs.240.5): Potential Buy
Valuation: Over-Valued stock with TTM PE of 60x.
Reasons to Consider: For Q4FY2019, net sales of V-Guard Industries rose by 12.3% YoY to Rs. 740 crore. The revenue was driven majorly by the electrical segment 14.8% YoY, in which sub-category cables grew 24.8% YoY and new product categories up 61.5% YoY in which sub-categories switch gears and kitchen appliances grew by 89.3% and 41.8% YoY respectively. Stabilizers reported only 2.8% YoY growth on account of lower ac sales in Non-South normalized higher sales in South. UPS segment declined by 6.5% as the company treaded carefully to secure margins and its product mix. The pent up demand in the Southern region led to 16.3% YoY growth in revenue from that region while the non-South region was affected by delayed onset of summer.
Key Drivers: The management is targeting to grow its overall revenue by 15% YoY in FY 2020 assuming the revival of growth in stabilizer and pumps (each to grow by 10% YoY), UPS (in between 15-18% YoY) and higher contribution of new products (currently 7% of revenue). The company will aim for 10% operating margin (including other income) considering a higher share of stabilizer revenue and rationalization of ad spends & employee costs. The company would be incurring capex of Rs. 130-140 crores over the next two years spending mainly on expanding water-heater manufacturing, bringing fans manufacturing in-house and expanding wire manufacturing. The companys board also passed enabling a resolution to raise Rs. 750 crores in case it pursues inorganic growth opportunities.
Financial: Total revenue Rs 740 cr in Q4FY19 vs Rs 658 cr in Q4FY18 up 12%. PAT at Rs. 59 cr in Q4FY19 vs Rs 28 cr in Q4FY18 up 115%. Ebitda stands at Rs.85 cr in Q4FY19 up 106% vs Rs. 41 cr in Q4FY18.
UltraTech Cement Ltd (NSE: ULTRACEM ) (Share Price: Rs.4562.2 ): Potential Buy
Valuation: Over-Valued stock with TTM P/E of 65x.
Reasons to Consider: UltraTech Cements revenues for Q4FY19 grew 16.6% Rs 10,500 cr almost entirely led by volume growth. Volume growth strong at 16% for the quarter. Volume sales clocked during the quarter were at 20.46 MT whereas realisations remained flat YoY at Rs 5134/t. The strong operational performance drove the margin expansion with production costs per tonne reducing from Rs 4138/t to Rs 4050/t. For FY19, the cement industry would have been expected to grow at 12%, with all four quarters growing at double digits. During the year, the industry witnessed incremental demand of 38 MT being higher than the incremental supply of 12 MT.
Key Drivers: The addition of Binanis assets to its portfolio, the companys gross debt has soared above Rs 20,000 crore. The management now intends to divert operating cash flows towards debt repayment. Additionally, UltraTech is in the process of selling its non-core assets in the UAE and China, which will help achieve debt/EBITDA of 1.7x by FY21E. The assets acquired from Jaypee Associates (21.2MT) are operating at 82% capacity utilisation level. The company intends to make these assets earnings accretive by the end of FY20E. Binanis assets, which had undergone overhauling during the quarter, operated at 72% utilisation for March 2019. The commendable ability of the management to turn around key acquired assets remains a key strength for the company as is being witnessed in the current quarters performance. We expect a similar performance to continue even in the newly acquired Century assets. After achieving greater scale, the focus now turns to de-leveraging to strengthen the balance-sheet which will be a key positive trigger for the stock.
Financial: Total revenue Rs 10500 cr in Q4FY19 vs Rs 9002 cr in Q4FY18 up 16%. Net Profit at Rs. 1017 cr in Q4FY19 vs Rs 488 cr in Q4FY18 up 108%. Ebitdastands at Rs.2213 cr in Q4FY19 up 30% vs Rs. 1703 cr in Q4FY18.
Bajaj Finance Ltd (NSE: BAJFINANCE ) (Share Price: Rs.3506.3 ): Potential Buy
Valuation: Over-Valued stock with TTM P/BV of 11.5x.
Reasons to Consider: Bajaj Finance has yet again reported stellar quarter with 57% jump in its consolidated net profit at Rs 1,176 crore in Q4 on the back of fall in provisions. However, it loan losses and provisions declined to Rs 409 crore from Rs 454 crore, QoQ with provision coverage ratio was unchanged at 60 but company asset quality improves with growth in lending business. Company has improved its loan book as without compromising its asset quality compare to its other peers also the company has also continued to manage its ALM/Cost of Funds (COF).
Key Drivers: Men to be separated from boys as the NBFC segment is undergoing a significant shift in market approach. Courtesy to recent events such as defaults (and subsequent bankruptcy in several cases) of the debt paper of several toprated corporates, we find that risk tolerance and appetite have been tempered across money markets. We believe this may lead to a possible shift in market approach, giving more importance to ratings and quality of borrower rather than merely chasing yields. Company has yet again posted robust performance in a tough environment as against other NBFCs. It has seen strong loan growth during Q4, where its assets book grew strong 41 percent YoY to Rs 1,16,000 crore. Management has always guided a loan growth rate of 20-25 percent but it has been consistently beating the guidance. BFLs margins improved in Q4 due its strong asset quality so that it can raise money at lower yield. Gross non-performing assets (NPAs) and net NPAs stood at 1.54 per cent and 0.63 per cent, respectively, at the end of March 2019. BFL always traded at premium valuations due to its higher earnings growth trajectory. Currently, BFL stock is trading at FY20 estimated P/B ratio of 7.5 which is significant premium to its peers.
Financial: Net interest income stood at Rs 3395 cr in Q4FY19 vs Rs 2265 cr in Q4FY18. Whereas, AUM grews to Rs 116000 cr in Q4FY19 up 41% with Steady asset quality. Net profit up 57% to Rs 1176 cr Vs Rs 748 cr YoY.
Info Edge India Ltd(NSE: NAUKRI) (Share Price: Rs.2224): Potential Buy
Valuation: Over-Valued stock with TTM PE of 70x.
Reasons to Consider: Info Edge India reported Q4FY19 numbers where its revenue grew 22% to Rs 293 cr and PBT grew 56% to Rs 117 Cr. Overall, Billing grew 18.6 percent year-on-year to Rs 360.9 crore in March 2019 quarter. Billings continued to grow in high teens for Q4 and for the full year of FY2018-19. The YoY increase of 53 percent in operating EBITDA in Q4 and 14.8 per cent for the full year of FY2018-19 provide for more room to accelerate investment in technology and brand. Hiring activities continue to remain strong across while higher-tech spends could increase going ahead and Continued to spend in Jeevansathi business for volumes growth will drive the revenue and profit. Elevated cash burn by Zomato to continue to gain market share and Company is open to investing more as well as inorganic opportunities.
Key Drivers: 99acres to witness strong growth Despite the lesser number of new launches and continued soft demand environment due to high inventory in the real estate space, 99acre has delivered strong revenue growth of 16% CAGR in last five years led by higher online penetration of developers and brokers and shifting of buyers to online reality portal. The management believes that the ad spends are likely to remain elevated going forward on the back of strong traction for renewals and an increase in traffic. However, the ongoing NBFC liquidity crisis and upcoming general elections could limit the recovery of the demand cycle of real estate in the short-term. With 50% of overall traffic share, 99acres is well positioned to capitalize the opportunities that would arise from increasing online penetration of buyers in the real estate space and shifting of ad spend from print to online. Info Edge has been making small investments at attractive valuations in the early stage of companies/start-ups, with total investments in more than 20 entities. Out of these, Zomato and PolicyBazaar have emerged as big bets and are contributing significantly to the sum-of-the-parts (SOTP) valuation of the company, while Happily Unmarried and Meritnation are progressing well in their businesses. The management also noted that Zomato has recently raised $315 million from the global investors in the latest rounding of funding, which pegged Zomatos valuation at $2.1 billion. Zomato continues to remain aggressive on its expansion plans to protect its market share from close competitors. We believe PolicyBazaar, which commands over 50% share of total online insurance space, is set to begin its multi-year growth journey.
Financial: Total revenue Rs 293 cr in Q4FY19 vs Rs 241 cr in Q4FY18 up 22%. PBT at Rs. 117 cr in Q4FY19 vs Rs 76 cr in Q4FY18 up 56%. Ebitda stands at Rs.91 cr in Q4FY19 up 54% vs Rs. 59 cr in Q4FY18.