Best Shares To Buy For Short Term In May 2019
May 12, 2019 | 12:39 PM IST
May 12, 2019 | 12:39 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 2019, read Best Short Term Stocks To Buy Today if you are looking to buy shares today.
TCS Ltd. (NSE: TCS) (Share Price : Rs.1960): Potential Buy
Valuation: Fairly-Valued stock with TTM PE of 25x.
Reasons to consider: Tata Consultancy Services Limited (TCS) is engaged in providing information technology (IT) services, digital and business solutions. The Company's segments include banking, finance and insurance services (BFSI); manufacturing; retail and consumer packaged goods (CPG); telecom, media and entertainment, and others, such as energy, resources and utilities, hi-tech, life science and healthcare, s-Governance, travel, transportation and hospitality, and other products. It has reported stable revenue growth of 20.3% yoy and 1.3% qoq in Q3FY19. This was largely led by strong revenue growth from digital services vertical and BFSI segment for the quarter. However, the EBIT for the quarter remain subdued due to higher employee benefit expenses. The EBIT margin for the quarter stood at 25.6% with contraction of 90 bps. The bottom-line showed sturdy performance with 2.6 % qoq to Rs.9560 crore. In addition company won deals Rs.590 crore in the quarter spread across different segment and geographies.
Key Drivers: The digital and BFSI segment continue to remain major revenue contributors for the company with 30% revenue contribution each. The retail segment ( 16.5% of revenue) also reported robust growth in the quarter and hold huge potential of growth. Going ahead we see robust deal wins and strong growth across the verticals will aid to double digit growth in FY19 & FY20E. However, the slowdown in global economy remain key risks to look out for. one can buy the stock in correction.
Financial: Company had reported a Revenue of Rs 37338 cr in Q3FY19 Vs Rs 30904 cr in Q3FY18 up 20.8%, Net profit of Rs 8105 cr in Q3FY19 vs Rs 6531 cr in Q3FY18 up 24%, whereas EBITDA stands at Rs 10083 cr in Q3FY19 vs Rs 8288 cr in Q3FY18 up 21% and EBITDA margin up 19bps to 27% in Q3FY19 vs 26.8% in Q3FY18.
ITC Ltd. (NSE: ITC) (Share Price: Rs.296): Potential Buy
Valuation: Fairly-Valued stock with TTM PE of 31x.
Reasons to consider: ITC Limited is a holding company, which is engaged in the marketing of fast moving consumer goods (FMCG). The Company operates through four segments: FMCG, Hotels, Paperboards, Paper and Packaging, and Agri Business. ITC reported a steady quarter with broad-based growth across segments. Cigarette volumes grew a healthy 7.5% with 8.8% EBIT growth as stable prices propelled steady increase in consumer demand. FMCG business reported 41.6% higher EBIDTA led by strong traction in processed foods and lower losses in personal care despite one off losses on business restructuring in Lifestyle retailing. Paperboard business is in fine fettle given gains from steady prices and benign input costs.
Drivers: ITCs vision of reaching Rs 100,000 crore turnover with FMCG contributing Rs 70,000 crore is on the right track with companys slew of new launches recently. It has forayed into packaged non-basmati rice market with Sona Masoori in Bengaluru. In the dairy segment, it has launched four variants of RTD milk beverages under Sunfeast Wonderz brand in Karnataka and Tamil Nadu. ITC is looking to expand its dairy business further by launching paneer in Kolkata and milk beverages on a pan India level in the near term. It has launched pouch milk under Aashirvaad Swasti and curd under Aashirvaad Swasti Dahi. It expanded its noodle portfolio by launching Sunfeast Yippee noodles in four new variants and launched its traditional flavours snack Tedhe Medhe Wakhra Style under Bingo brand.
Financial: The company had reported a Sales of Rs 11227 cr in Q3FY19 Vs Rs 9772 cr in Q3FY18 up 15%, Net profit of Rs 3210 cr in Q3FY19 vs Rs 3090 cr in Q3FY18 up 4%, whereas EBITDA stands at Rs 4325 cr in Q3FY19 vs Rs 3889 cr in Q3FY18 up 11% and EBITDA margin has contracted 654bps to 38.5% in Q3FY19 vs 45.1% in Q3FY18.
NTPC Ltd (NSE: NTPC) (Share Price : Rs.148.50): Potential Buy
Valuation: Under-Valued stock with TTM PE of 12x.
Reasons to consider: NTPC reported Q3 numbers wherein revenues came at Rs 24120.4 crore in Q3FY19 vs Rs 20774 crore in Q3FY18. On an operational basis, gross power generation grew 3.4% at 70 (BUs) Q3FY19 vs 67.7 (BUs) Q3FY18. Whereas, energy sold grew 3.1% YoY to 65.3 (BUs) Q3FY19 vs 63.4 (BUs) Q3FY18. PLFs of coal plants were at 77.7% vs 76.9% in Q3FY18. As on 9MFY19, the companys commercial capacity was at 44185 MW. Average tariff for 9MFY19 was at Rs 3.47 / Kwhr. Fuel cost per unit during Q3FY19 was at Rs 2.17 / unit vs Rs 2.04 / unit QoQ.
Key Drivers: Management in concall stated in the coming quarter the under-recovery figure will improve as losses from its Unchahar plant will now be contained and the plant has re-started its operations from Dec 2018. It currently has 21,071MW under construction power project out of which it plans to capitalize 4-5GW of capacity each year for the next 4 years which will lead to strong growth in its regulated equity base. NTPC is also planning to add around 10GW of solar capacity in next 3 years.
Financial: In Q3FY19 Net Sales was Rs 24120.4 crore Vs Rs. 20774 crore in Q3FY18 up 16%. Net Profit at Rs. 2385 crore in Q3FY19 up 1% from Rs. 2361.7 crore in Q3FY18, whereas EBITDA stands at Rs. 6580 crore in Q3FY19 vs Rs. 5277 crore in Q3FY18 up 25%.
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.
Bharat Electronics Ltd. (NSE: BEL) (Share Price: Rs. 91.50): Potential Buy
Valuation: Under-Valued stock with TTM PE of 11x.
Reasons to consider: Bharat Electronics Ltd. (BEL) is a Navaratna enterprise having 37% market share in Indian Defence Electronics and has strong order book. Its core business are in radar & weapons systems, defence communication & electronic warfare. Recently, company declared its third quarter result which beats the analyst estimates on all front due to strong operational performance and order execution of EVM & VVPAT.
Key Drivers: BEL is well positioned to benefit from the rising defense expenditure, supported by strong manufacturing base with current capacity utilization of 60%. An strategic collaboration with foreign technology partners for new product development will also benefit company in coming quarters. Company spends (9.0%) on R&D of its total revenues which will help them to develop innovative product in defence. Whereas, Order book of Rs 48,400 crore at end Q3FY19 looks healthly and provides strong revenue visibility.
Financials: In Q3FY19 Net Sales was Rs 2716 crore Vs Rs. 2506 crore in Q3FY18 up 8%. Net Profit at Rs. 508 crore in Q3FY19 up 68% from Rs. 303 crore in Q3FY18, whereas EBITDA stands at Rs. 785.74 crore in Q3FY19 vs Rs. 494.40 crore in Q3FY18 up 59%.
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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