There are always ups and downs in the Indian stock market, and investors keep taking advantage of these opportunities to earn money quickly. Investing long-term is a wise strategy for building wealth, but short-term trading can also be beneficial for those with a higher risk appetite and a good understanding of market trends.

As 2024 is approaching, it becomes very important to find shares with good earning potential and rapid growth potential in a short period. But remember, the risk is also higher in short-term trading. Therefore, just reading this article does not guarantee success.

Over the coming weeks, we’ll introduce you to some of the “Top Short-Term Stocks” that have the potential to grow rapidly. Every week we will analyse a different company, look at its future trends and see whether it can prove beneficial for investors in the short term or not. Keep following this blog and join us on this exciting journey of earning in less time!

Top 5 Shares to Buy for Short-term

1. Axita Cotton

Axita Cotton is the first stock list of Top 5 shares to buy for the short term today, established in 2013, It is an international manufacturer and exporter of high-quality Cotton Bales & Cotton Yarn. The company has a cotton manufacturing, ginning and pressing plant at Kadi in Mahesana district of Gujarat. , where it has 48 ginning and pressing machines with a capacity of ~87,600 MTPA of seed bags. These plants are located near premium cotton growing areas – in Saurashtra and other districts of Gujarat

Financial Performance:

• The company’s 3-year Compound Sales Growth Rate is 21%
• Axita Cotton’s 1-year stock price CAGR is 6%
• The company is expected to have a good quarter
• The company has delivered good profit growth of 113% CAGR over the last 5 years
• The company has a good return on equity (ROE): 3-year ROE 40.0%.
• The Market Cap of ₹ 562 Cr indicates Axita Cotton is likely a small to mid-sized company within its industry.
• The current price of ₹ 21.6 per share reflects the current market value of a single share.
• The High/Low of ₹ 35.4 / ₹ 18.6 shows the stock’s price has fluctuated within this range over the past year (typically 52 weeks).
• The P/E Ratio of 27.7 is a metric used to compare a company’s stock price to its earnings. A higher P/E ratio can suggest the stock might be priced for future growth potential, but further analysis is needed for a clearer picture.
• The Dividend Yield of 0.34% indicates a relatively low annual dividend payout compared to the current share price.

2. Ugar Sugar Works Ltd

Ugar Sugar Works Limited is the second stock list of the top 5 shares to buy today for the short term, established in 1939, has decided to set up a 200 KLPD furnace at its Ugar plant in Ugar Khurd for ethanol production and sugar, industrial and beverage alcohol, power generation and distribution of. The investment required is ~Rs. 151 crore to be financed through bank loans and domestic reserves.

Financial Performance:

• Ugar Sugar Works Ltd has a market capitalization of ₹ 820 Crore, which suggests it’s a mid-sized company in its sector.
• The current Ugar Sugar Works Ltd share price of ₹ 72.8 lies somewhere between its 52-week high and low, indicating a somewhat moderate recent performance.
• The P/E Ratio of 12.0 might suggest the stock is neither significantly overvalued nor undervalued based on its earnings. However, further analysis is needed for a clearer picture.
• The Book Value of ₹ 15.4 provides some insight into the company’s net assets per share.
• The Dividend Yield of 0.67% suggests a relatively low annual dividend payout.

3. Radiant Cash Management Services Ltd

Established in 2005, Radiant Cash Management Services Ltd. is the market leader in retail cash management services for banks, financial institutions and organized retail e-commerce companies in India The company offers a range of services under this category including cash storage and disbursement to end them acting on behalf of their customers.

Financial Performance:

• With a Market Cap of ₹ 841 Cr, Company X can be considered a mid-sized player in its sector.
• The Current Radiant Cash Management share Price of ₹ 78.8 tells you what a single share of the Company is currently trading for in the market.
• The High/Low (₹ 114 / ₹ 73.0) indicates the highest and lowest price the stock has traded at within the past year (typically 52 weeks).
• The P/E Ratio of 18.5 is a measure that compares the current stock price to the company’s earnings. A P/E of 18.5 suggests that investors are willing to pay ₹ 18.5 for every ₹ 1 of earnings the company generates.
• The Dividend Yield of 3.81% indicates the percentage of annual dividend income an investor would receive relative to the current Radiant Cash share So, a ₹ 78.8 investment in Radiant Cash could potentially generate ₹ 3.81 in annual dividends.

4. AVT Natural Products Ltd

AVT Natural Resources Ltd. . A.V. The Thomas Group. The company is engaged in the business of developing plant-based products and natural solutions for the food, beverage, animal feed and nutrition industries around the world

Financial Performance:

• The company has delivered good profit growth of 27.2% CAGR over the last 5 years
• The company has been maintaining a healthy dividend payout of 21.4%

• With a Market Cap of ₹ 1,348 Cr, AVT Natural Products Ltd can be considered a mid-sized to large-sized player in its sector. This suggests it’s a well-established company with a significant presence in the market.
• The Current avt Natural prod share Price of ₹ 88.4 tells you what a single share of avt Natural prod is currently trading for in the market.
• The High/Low (₹ 116 / ₹ 76.9) indicates the highest and lowest price the stock has traded at within the past year (typically 52 weeks). This shows a moderate range of fluctuation in the stock price.
• The P/E Ratio of 23.9 is a measure that compares the current Avt Natural Products Ltd share price to the company’s earnings. A P/E of 23.9 suggests investors are willing to pay a premium (more than ₹ 1 for every ₹ 1 of earnings) for the potential of future growth.
• The Dividend Yield of 1.13% indicates a relatively low annual dividend payout compared to the current share price. This suggests the company might be reinvesting most of its profits for growth.

5. Bhansali Engineering Polymers Ltd

Bhansali Engineering Polymers Limited is engaged in the manufacture and sale of ABS resins, AES resins, ASA resins, SAN resins and their blends with other plastics in the Indian market.

Clients include major manufacturers of automobiles, home appliances, electronics, healthcare and kitchenware. The company is focused on expanding its presence in the ABS segment through capacity expansion initiatives. It plans to strengthen its efforts to optimize its share of the ABS market segment, especially with the support of its JV with Nippon from the automotive industry

Financial Performance:

• The company is almost debt-free.
• The stock yields a positive dividend of 4.25%.
• The company has a good return on equity (ROE) track record: 3 Years ROE 23.4%
• The company has been maintaining a healthy dividend payout of 92.4%
• With a Market Cap of ₹ 2,343 Cr, Bhansali Engineering Polymers Ltd can be considered a large-sized player in its sector. This signifies a well-established company with a substantial presence in the market.
• The Current Bhansali Engineering Polymers Ltd share Price of ₹ 94.3 reflects the current market value of a single share of the Company.
• The High/Low (₹ 118 / ₹ 81.6) indicates the highest and lowest price the stock has traded at within the past year (typically 52 weeks). This shows a moderate range of fluctuation in the stock price.
• The P/E Ratio of 13.0 is a key metric used to compare the current stock price to the company’s earnings. A P/E of 13.0 suggests that investors are paying ₹ 13.0 for every ₹ 1 of earnings generated by the company.

Risks to consider before investing in Short-term

There may be a temptation to make quick profits by buying and selling shares in a short period, but wait a bit! It has several risks:

• Market Volatility: The market keeps going up and down, you never know when you may incur losses.
• Lack of Research: Making decisions in a hurry without doing proper research can lead to choosing the wrong shares.
• Liquidity Risk: Some shares are bought and sold in short supply, in such a situation it can be difficult to buy and sell at the right price.
• Timing Risk: It is difficult to predict the ups and downs of the market, buying at the wrong time can lead to losses.
• Overtrading: Repeated buying and selling of shares can result in more losses than gains because there is a charge on each transaction.
• Margin Trading Risks: Buying more shares by borrowing money from the broker is risky, if the market falls, it can be difficult to return the money.
• Emotional Bias: Taking hasty decisions out of fear or greed can result in mistakes.
• Event Risk: Due to any news, the prices of shares can fall suddenly, which can lead to loss.

How to Identify the Best Stocks for Short-Term Profit?

It is possible to make a profit by buying and selling shares in a short time, but for this, some strategies have to be adopted. Let us see how:

• Understand the mood of the market: Keep an eye on the ups and downs of the stock market, economic situation and news. This shows which sectors are doing well and which are not.
• Take advantage of upcoming events: Sometimes a company launches a new product or gets government approval. There may be a sudden rise in the shares related to such news.
• Technical analysis: The future movement of shares can be predicted by studying their records and data. From this, it can be known whether a stock will go up or down.

Conclusion

There is an opportunity to profit by buying and selling shares in a short period, but it is for a very short time. Therefore an investor needs to understand how important it is to buy and sell shares at the right time. With the help of Grow, Screener, you can detect the risks associated with short-term stocks and sell shares at the right time to make quick profits. For more information on how to maximize your returns, check out our guide on the top 10 investment strategies for 2024.

Disclaimer: The information given in this blog should not be considered investment advice in any way. The stock market is full of risks and our objective is only to provide information about possible opportunities. Consult your financial advisor before making any financial decisions.

FAQs

1. What factors should I consider before investing in short-term shares?

Before deciding to buy shares in the short run, consider these important things:

• Market Volatility: Short-term investments are more affected by market fluctuations. So Understand current trends and potential changes.
• Company Performance: Evaluate financial health and recent performance. Look at earnings reports, revenue growth, profit margins, and debt levels.
• Industry Trends: Consider the Performance of the industry where the company operates. Some sectors may be volatile or cyclical.
• Technical analysis: Understand price patterns and market sentiment. Look at indicators like trends, moving averages, and RSI.
• Risk Tolerance: Assess your risk tolerance. Invest only the money you can afford to lose.
• Costs Trading: Consider brokerage fees, transaction costs, and taxes.
• Diversification: Diversify investments to reduce risk. Don’t invest all your money in one stock/sector.
• Time Commitment: Investments need regular monitoring. Make time to keep an eye on the market and make quick decisions.

2. How long should I hold short-term shares before selling?

How long one should hold short-term stocks depends on several factors:

• If the market is unstable, then you may have to sell within a few days to avoid quick losses. But if the market is stable you can place slightly longer bets.
• If a share is going up rapidly, you can earn profit by selling it quickly. But if there is scope for further growth in the stock, then you can hold it for some more time.
• Do you want to make quick profits or do you expect profits in a longer period? Your strategy will be decided on when to sell the shares

3. Is it worth buying shares for the short run in 2024?  

The choice to buy shares in the short-term in 2024 should be based on a review of market conditions, economic factors, and adequate individual risk tolerance Short-term investments, when due to quick profit potential, also come with a lot of risk. Investors should conduct comprehensive analysis, apply trend-searching techniques, and adopt aggressive risk management measures to limit volatility associated with short-term financing.

4. Is it safe to buy in shares for the short term?  

Short-term investments in stocks carry more risk than long-term investments. Short-term investing requires careful monitoring of market conditions and timely buying and selling choices, which can be tricky and require a high level of expertise and focus, risk-appropriate policies apply, such as position-size and stop-loss orders as