5 Best Shares To Buy Today For Short Term

5 Best shares to buy for short term in Sep 2018

The general rule of thumb is that shares bought for less than one-year holding duration are considered as short-term shares. Here are the 5 best shares to buy today for short term duration of around six months. These top shares can be a bought now, today, tomorrow, or any other day as long as they are around the price recommended. If your time horizon is long term i.e. more than a year then visit best shares to for buy long term.

Disclaimer: Shares recommended and opinions below are for informational purposes and shouldn't be taken as a final advice from Niveza India. You shouldn't rely on this free advice solely and do your own research to arrive at the final conclusions. Our final opinion on which shares to buy for short-term investments is sent via SMS and Email to subscribers of Our Premium Products.

Shares To Buy For Short-Term

Phoenix Mills Ltd (NSE: PHOENIXLTD) (Share Price: Rs.574.90): Potential Buy

Valuation: Attractive with TTM P/E of 31.56x.

Reasons to consider: The companys Wakad Project in Pune to get environment clearance in Q3FY19. Company expects to commence construction latest by Q4FY19. Its Lucknow project has all the required approvals and it expects to be operational by Q3FY20 which is ahead of schedule by almost one year. It is expected that 4.6 million square feet of strong cash-generating retail space to become operational between FY21 to FY23. It has average rental income in its largest retail mall chain of Phoenix Market City (PMC), of around Rs. 116.75 per square feet. With strong addition of new rental spaces company will generate more revenues in coming quarters. Its rental income for H1FY19 rose by 16 per cent YoY. At the same rate company will achieve overall top line growth of 15 to 20 per cent higher than last fiscal year.

Drivers: Companys rental income is likely to boost as it will add almost 90 per cent new capacity via new malls in new as well as same locations. Also with renewals of rental contracts will have very positive impact of about 20 per cent on annual basis. Hence even at these margins EPS is expected to grow up to 25 - 30 till FY20.

Financials: On financial front, company posted robust results for Q2FY19. The consolidated income from operations for the quarter came in at Rs. 404.73 crore from Rs. 370.62 crore, registering 9.2 per cent yoy increase. EBITDA for the quarter rose by 11.1 per cent yoy to Rs. 198.19 crore with a corresponding margin expansion of 82 bps. EBITDA margin for the quarter stood at 49 per cent. The net profit for the quarter came in at Rs. 66.61 crore as against Rs. 42.29 crore, registering yoy increase of 57.5 per cent. The PAT margin for the quarter stood at 16.45 with corresponding margin expansion of 504 bps from last years 11.41 net profit margin.

VRL logistics (NSE: VRLLOG) (Share Price: Rs.268) Potential Buy

Valuation: Fairly Valued with TTM P/E of 30.75x.

Reasons to consider: The companys goods transportation segment revenue increased by 17% led by increase in tonnage by 10.5% and increase in realization per ton by almost 7%. Also, lower lorry expenses improved the margins despite jump in fuel cost. Going ahead, the management expects tonnage would further improve the goods transportation revenue. On the capex front, in goods transportation business, it has reduced the plan to purchase of vehicles to 680-700 from 1200 as it can cater the demand with this capacity. The downward movement in diesel prices would improve the operating performance in H2FY19 as Diesel prices has corrected in last two months

Drivers: The management plans to renew some of the bus transport license coming up in next year for another 4 years. On the debt front, the net debt reduced from Rs. 63 crore as on March 31, 2018 to Rs. 54 crore as on September 30, 2018.

Financial: On the financial front, looking at the recently concluded quarter Q2FY19, the standalone revenue came in at Rs. 517 crore as against Rs. 452 crore in the corresponding quarter last year, registering 14% yoy increase. The EBITDA for the quarter fell by 3% yoy to Rs. 54 crore as against Rs. 56 crore in the corresponding quarter last year, with a corresponding margin contraction of 188 bps. EBITDA margin for the quarter stood at 10.5%. The PAT for the quarter came in at Rs. 20.6 crore as against Rs. 21.6 crore in the corresponding quarter last year, yoy decline of 4.5%.

Tata Chemicals Ltd (NSE: TATACHEM) (Share Price: Rs.693.55): Potential Buy

Valuation: Undervalued with TTM P/E of 7.24x

Reasons to consider: The company plans to grow and acquire about 40-45 per cent market share in this segment. The company has announced capex of Rs. 2400 crore for capacity expansion at the Mithapur facility. This would result in enhanced soda-ash capacity by about 200,000 MT, salt production by 400,000 MT and upgraded turbines for higher efficiency with a reduction in carbon footprint. Notably, it has announced its foray into the Lithium-ion battery sector to develop cell chemistries to meet Indian application which is likely to be catalyst for the company in long run as batteries forms almost one-third of the cost of the overall e-vehicle cost. The nutraceuticals project is expected to be commissioned by Q1FY20E. Furthermore, the company is divesting its fertiliser business,which is generally a low margin segment, to focus towards specialty chemical business and farm business.

Drivers: The company added nutrimixes like khichdi and chila mix to its portfolio and looks to launch more such products as it believes the market is still under-penetrated.

Financials: On the financial front, looking at the recently concluded quarter Q2FY19, the consolidated revenue came in at 2960.66 crore as against Rs. 2690.19 crore in the corresponding quarter last year, registering 10 per cent yoy increase. Consumer products business registered an overall growth of 22 per cent over same quarter of previous year. Basic Chemistry Products witnessed 7 per cent yoy and Specialty Products division registered 12 per cent yoy growth. EBITDA for the quarter declined marginally by 5.6 per cent yoy to Rs. 602.03 crore with a corresponding margin expansion of 338 bps. EBITDA margin for the quarter stood at 20.33 per cent. The PAT for the quarter came in at Rs. 371.63 crore as against Rs. 346.9 crore in the corresponding quarter last year, yoy increase of 7.14 per cent.

Uniply Industries (NSE: UNIPLY) (Share Price: Rs.58.80): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Fairly valued with TTM P/E of 24.32x.

Reasons to consider: Company has posted a robust jump in topline as well as bottomline during recent quarter Q2FY19. The companys Q2FY19 revenue mix is comprised of interiors & furniture related products (62%), Construction (36%) and wood related products (2%). Also, with GST implementation, the company remains well-poised to gain market share from unorganized players (65%).

Drivers: Overall building solutions industry is expected to grow at 7% CAGR by 2022 and home furnishings would be the largest contributor to the same. Also, office and institutional furniture will drive the demand in this industry. Moreover, this industry is dependent upon the growth in real estate and hospitality & tourism sectors.

Financial: Uniply industries consolidated revenue for Q2FY19 came in at Rs.120.26 crore as against Rs. 91.71 crore in the same quarter last fiscal, registering 31.1% you increase. This was primarily driven by volume growth furniture products which saw growth of 7% YoY. In addition to that companys construction business was able to produce revenue of Rs.41.92 crore. On operational front, EBITDA for the quarter rose by 28.3% yoy to Rs. 21.35 crore from Rs. 16.64 crore last year with a corresponding margin contraction of 39 bps. EBITDA margin for the quarter stood at 17.8 % The net profit for the quarter came in at Rs.8.85 crore as compared to Rs. 6.15 crore during same quarter last fiscal, showing yoy increase of 43.9%.

How to Find the Best Short-Term Shares?

Whenever you are contemplating stock investment, whether it's for short-term or long-term, you have to do a certain amount of research. There are aspects which ought to be touched upon in order to find a company worth investing. For a long-term view, you have to do an in-depth analysis of the company, its business, corporate governance, etc. However, if you have a short-term view, the process can be cut short considerably.

No Need For A Thorough Sectoral Analysis - In-depth sectoral analysis or the top-down economic analysis is not called for when you are looking for short-term stocks. The screeners are set to find the events which will have an impact on the price of the stock in the near future. These events can be anything like quarter earnings, conducive government's policies, a good order-book, optimistic management commentary for subsequent quarters, etc. These are some of the short-term triggers which have a marked influence on stock prices.

As gaining from short-term stocks needs high precision, it's a domain for experts. That's why its prudent to avail services of an advisory firm.

Niveza offers v360 which give short-term value picks with thorough research and analysis. Not just that, you get timely updates of all the open calls along with precise entry and exit points.

Benefits of Buying Short-Term Shares

Like every other form of investment, short-term investment has its own set of pros and cons. From the quantum of returns to risk and reward equation, there are plenty of points on which short-term investment locks horns with the long-term investment. Let's take a point by point look at the pros and cons of going short.

Instant Gains - In the stock market, a whole lot depends on how you time the market. It's a daunting task to understand the constant mood swings of the market, but if you manage to enter a stock at the right time (when it has bottomed out) then you are in for instant gains. In many cases, a certain stock goes down consistently but once it bottoms out then there is a fair possibility for it to start its northward trend. Those who enter the stock at this level get immediate upside on their investment. Quick gains are one of the most enticing aspects of short-term stocks.

Research On The Merit Of Situation - The biggest stumbling block for doing a long-term investment is that one has to do a thorough research of all the financials of the company. In short-term investment, the analysts don't seek the clarity of too far ahead, their objective is to reap the maximum advantage of the short-term price movements. Such movements happen at the anticipation of good earnings, swelling order book or any substantial good news with respect to the company or corresponding sector. To gain from such movements of the stocks it's important to have perfect entry and exit points, only then one gets the optimum benefit of investing in short-term shares.

Disadvantages of Buying Short-Term Shares

The Palpable Threat Of Market Volatility - As we discussed above, volatility is just another name of stock investment. Short-term investors are amongst the people who stand to lose a lot in the market downturns. Investment in equity on a short-term basis always carries a certain risk. As the market cycles are extremely volatile, it can't be said with certainty that your investment strategy will come through as planned. This stands as one of the biggest disadvantages of short-term investment. In contrast to this, those who invest in the long-term stocks automatically discount the short-term hiccups which every stock goes through in its life cycle. There are some stocks which look very volatile in the short-term, but give excellent returns in long term.

Pay More Brokerage & Taxes -There are few investors who give a serious thought to equity brokerage they pay. They think it's a nominal amount that brokers deduct before delivering the stocks. Brokerage in India is extremely high, to add to it, there are plenty of taxes and cesses which are levied on every trade (buy & sell). Naturally, short-term investors and day traders have to pay more brokerage as they are constantly engaged in the buying-selling process. On the other hand, those who go long, and refrain from constant buying and selling of stocks, save a lot on brokerage, cess and taxes.

Risk Factor - When you are investing in stocks with a certain time frame in mind and target in mind it makes it easy to build your risk-reward profile. It simply means to have the math ready of how much you are willing to lose if you aiming for a certain profit. For example, if you are investing Rs.25,000, you can say if your profit target is 20% upside, to get that, you can bear the downside of 8%. It means your stop-loss would be placed at 8% below the buying price. If the stop-loss hits you can invest the same capital in other stock. This way your capital doesn't get stuck for a long time.



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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