Best Shares To Buy For Short Term In March 2019
Mar 24, 2019 | 15:51 PM IST
Mar 24, 2019 | 15:51 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 Feb 2019, read Best Short Term Stocks To Buy Today if you are looking to buy shares today.
HDFC BANK Ltd. (NSE: HDFC BANK) (Share Price : Rs.2,301): Potential Buy
Valuation: Over-Valued stock with TTM P/BV of 5.85x.
Reasons to consider: HDFC Bank Limited is India's largest private sector bank. The Bank offers a range of banking services covering commercial and investment banking on the wholesale side and transactional/branch banking on the retail side. It also offers financial services. The Bank's segments include Treasury, Retail banking, Wholesale banking and Other banking business. HDFC Bank PAT growth has been consistent at 20% since FY16 vs. 30% in the past and grew to Rs 17457 crore in FY18. In Q3FY19, 54% was retail (Rs 420900 crore) & 46% corporate book of Rs 360051 crore. In Q3FY19, personal loans & credit cards continued their strong growth trajectory. It enjoys the largest market share in credit cards, which fetches higher margins and returns.
Key Drivers: The bank is well placed to harness both retail & expected corporate pick-up. The bank has a strong liability franchise with CASA of 48% and retail term deposit comprises more than 80% of deposit of Rs 788770 crore as on FY18. Compare to others banks, it has maintained stable asset quality where its GNPAs & NNPAs remain in range of 1-1.5% from past 20 quarters. Considering, the healthy balance sheet growth, superior asset quality & management, the bank is well poised to deliver consistently with superior margin & robust return ratios. However, the bank has always trades with premium valuation. One can buy the stock at correction.
Financial: Its annouces Q3 result where, Net interest income stood at Rs 12576 cr in Q3FY19 vs Rs 10314 cr in Q3FY18. Net advances grew by 24% YoY to Rs 780951 cr. CASA de-grown by 320bps to 40.7% YoY. Net profit up 20% to Rs 5585 cr Vs Rs 4642 cr YoY. NIM remain stable at 4.3% YoY.
Mahanagar Gas Ltd. (NSE: MGL) (Share Price : Rs.1,034): Potential Buy
Valuation: Fairly-Valued stock with TTM PE of 17x.
Reasons to consider: Mahanagar Gas Ltd. (MGL) reported revenues of Rs 752 crore in Q3FY19 and volume growth at 8% YoY for Q3FY19. Whereas, CNG segment grew at 8%YoY, while total PNG growth stood at 7% YoY . Within PNG, domestic volume grew at 13% YoY. After EBITDA/scm of Rs 8.1 in 6MFY19, the same grew to Rs 8.8 in the quarter.
Key Drivers: With MGLs fundamental growth story in place and a positive sectoral outlook, the company can deliver a strong performance with govts continued focus towards the use of cleaner fuels. The Discounted prices of CNG as compared to alternative fuels (petrol, diesel) makes it preferable. And thereby expected to aid the conversions to CNG. Further, to address the lower penetration, management has putting efforts and aiming to accelerate it with recent critical approvals for Raigad regions. Moreover, MGL's revised CapEx guidance to Rs 375 crore suggests its optimistic plans towards penetrating aggressively in tier 1 & tier 2 cities.
Financial: Net sales of Rs 752.68 crore in Q3FY19 vs Rs. 581.41 crore in Q3FY18 up 29.46% YoY. Net Profit at Rs. 148.32 crore in Q3FY19 vs Rs. 123.98 crore in Q3FY18 up 19.63% YoY whereas, EBITDA stands at Rs. 259.48 crore in Q3FY19 vs Rs. 215.03 crore in Q3FY18 up 20.67% YoY.
Bata India Ltd. (NSE: BATAINDIA) (Share Price : Rs.1340): Potential Buy
Valuation: Over-valued stock with TTM PE of 58x
Reasons to consider: Bata India Ltd had posted a strong performance in the December quarter with revenues growing 15.5 percent to Rs 778.7 crore YoY and net profit higher by 51.3 percent to Rs 103.2 crore YoY. It has reported double digit revenue growth with Same Store Sales Growth(SSSG) grew 12% for the quarter and margins for the quarter improved significantly by 350 bps to 58.6% YoY.
Key Drivers: Company efforts towards premiumisation of product portfolio yielded better operating margins and will remain better in coming quarter. It has concentrated on redesigning of its existing store model with specific focus on various categories like sports, youth and women which will drive the growth in coming quarter. Management has a plan to add 150 stores in FY19 (100: COCO, 50: franchisee)
Financial: In Q3FY19 Net Sales was Rs 779 crore Vs Rs. 674 crore in Q3FY18 up 15.5%. Net Profit at Rs. 103 crore in Q3FY19 up 51.3% from Rs. 68 crore in Q3FY18, whereas EBITDA stands at Rs. 163.6 crore in Q3FY19 vs Rs. 111.5 crore in Q3FY18 up 46.8% & EBITDA Margins at 21% in Q3FY19 vs 16.5% in Q3FY18 up 447bps.
Asian Granito India (NSE: ASIANTILES) (Share Price : Rs.227.65): Potential Buy
Valuation: Fairly-Valued stock with TTM PE of 16x.
Reasons to avoid: AGL is one of the top three market players in the Tiles & Ceramics business. The company has PAN India presence with 289 exclusive showrooms. Its continuing focus on the retail segment by launching a new product in its high margin segment marble & Quartz is expected to drive margins for the company. Improving demand and management guidance further adds earnings and margin visibility of the business. AGL has posted a robust revenue and profitability growth of 15% and 25% coupled with ROCE of 16% and ROE of 13% in the past 5 years. The stock is technically trading at the bottom levels.
Key Drivers: The well-diversified business among government and institutional clientele and the increased focus on the retail business remains one of the key drivers of the business. Moreover. Tiles and ceramic segments are expected to get a boost from the governments initiative to build 20 million affordable houses under PMAY
Financial: In Q3FY19 Net Sales was Rs 296.22 crore Vs Rs. 263.78 crore in Q3FY18 up 12.3% YoY. Net Profit at Rs. 4.63 crore in Q3FY19 down 60.4% YoY from Rs. 11.70 crore in Q3FY18, whereas EBITDA stands at Rs. 24.98 crore in Q3FY19 vs Rs. 36.96 crore in Q3FY18 down 32.41% YoY.
Niveza Editorial Desk :
We are a team of stock market nerds trying to stay ahead of the herd. We spend our grey cells everyday to a pave a smooth road for our clients in the shaky world of stock market. While tracking the mood swings of the market we bring our clients the most rewarding deals.
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