Best Shares To Buy For Short Term In December 2017
Dec 01, 2017 | 19:15 PM IST
Dec 01, 2017 | 19:15 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 December 2017, read Best Short Term Stocks To Buy Today if you are looking to buy shares today.
Best Shares to Buy For December 2017
JM Financials (NSE: JMFINANCIL) Share Market Tips: Can be considered (CMP: 149 as of 1/12/2017)
Valuation: Overvalues with trailing PE of 22.22x.Reasons to consider: The company has posted continuous growth since last five years at five-year CAGR of ~21% in revenue front. The company also has healthy dividend payout ratio. Drivers: Diversified business model in NBFC sector serves well for the company. Its lending profile growing on account of real estate growth under various government norms like RERA and Affordable Housing. ARS business of the company is in a sweet spot.Financials: Gross income stood at Rs.2,359 crores in FY17 vs Rs.1,684 crores in FY16. AUM grew to Rs.1,2469 crores in H1FY18 vs Rs.11,874 crores in FY17. PAT grew to Rs.470 crores in FY17 vs Rs 400 crores in FY16.
Technocraft Industries (NSE: TIIL) Share Market tips: Can be considered
Valuation: Stock is undervalued with training PE of 13.75x Reasons To consider: The company has approved buyback of shares at Rs.525 per share. Also, sales grew at CAGR of ~2%. Net cash flow is also healthy for last six years. Drivers: The company has diversified portfolio which consists of steel pipe, drum closure, textile and power infrastructure segment. The company is set to perform well due to traction in China for drum closure and infra push by the Indian government for scaffolding business.Financials: The company has shown operational efficiency by improving EBITDA and PAT margin from 14.41%/ 7.25% in FY15 to 19.84%/ 10.75% in FY17. It also exhibited financial strength by improving ROE and ROCE from 12.69%/ 15% in FY15 to 15.98%/ 16.75% in FY17.
National Peroxide (NSE: NATPEROXIDE) Share Market tips: Can be considered (CMP: 2206 as of 16/11/2017)
Valuation: Overvalued as compare to peers with trailing PE of 24.05x.Reasons to consider: Revenue of the company growing since last three years at CAGR of ~3%. Operating profit margin improved to 28% in FY17 from 14% in FY15. Net profit margin also improved to 18% in FY17 from 3% in FY15. It's a zero debt company.Drivers: Company is a pioneer producer of Hydrogen Peroxide in the industry. Pulp and paper industry is a key customer of Hydrogen Peroxide. The outlook for pulp and paper industry is positive. The government may impose anti-dumping duty on imported Hydrogen Peroxide which would be one big move in companies basket.Financials: Net sales grew by 18% YoY to Rs.76.8 crores in Q2FY18. EBITDA margin improved to 35.87% in Q2FY18 vs 32.43% in Q2FY17. PAT margin improved to 23.35% in Q2FY18 vs 18.72% in Q2FY17.
Gandhi Special Tubes (NSE: GANDHITUBE) Share Market tips: Can be considered
Valuation: Undervalued stock with trailing PE of 15.02x as compare to close peers.Reasons To consider: The company posted sales growth at CAGR of ~5% in last three years. It is a zero debt company. It also improved its operating margin from 30% in FY15 to ~42% in FY17.Drivers: The company belongs to steel tubes and pipes sector which is going to be the next booming thing. Government's push for infrastructure sector will drive the company's growth. Financials: In Q2FY18, the company posted revenue of Rs.29.78 crores in Q2FY18 vs Rs.30.6 crores in Q2FY17. Operating margin increased to 46.47% vs 39.68% in Q2FY17. EPS stood at Rs.5.91 per share vs Rs.5.19 per share in Q2FY17.
Dilip Buildcon (NSE: DBL) Share Market tips: Can be considered
Valuation: Over valued with trailing PE of 28.27x as compared to close peers.Reasons to consider: The company posted continuous revenue growth by CAGR of 35% in last 5 years. Also it has a strong order book as of date. The management of the company aims at revenue and PAT growth of 10-15% in FY18. The company has ~Rs.2,550 crores of gross debt and do not wish to raise more rather it is focusing on reducing cost of debt in coming time.Drivers: Bharatmala Project fuels the growth of the company. Considering good track record of execution of past projects, Dilip Buildcon would benefit in the future from this project.Financials: Net sales grew by ~24% to Rs.5,097 crores. ROA improved to 5% in FY17 vs 3.87% in FY16. PAT grew by 56% to Rs.361 crores in FY17.
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