Short Term Stocks to Watch in 2024

Short-term stocks, which are shares of companies with strong financial foundations but not yet catching up with market growth, can generate high returns on investment in a short period. To find top short-term stocks for your 2024 investment portfolio, research companies with stable revenue growth, healthy profit margins, low debt levels, and a strong competitive position. Consider stocks with upcoming positive catalysts and practice effective risk management by diversifying your portfolio. Below are some of the best short-term stocks to watch in 2024, you can do more research & analyse them accordingly. 

List of Best Short Term Stocks 

Below are some of the best short term investments in 2024 in the Indian stock market. 

Disclaimer: All the net profits, and P/E ratios mentioned above are as of March 5, 2024. However, it's important to conduct thorough research before making any investment decisions in these stocks.

Companies for Short-Term Investments: Overview 

Below are the best stocks to invest in today in India for the short term. However, Conduct thorough research before making any investment choice today in India with strong performance metrics and promising growth prospects for short-term stock market investments, enhancing your investment portfolio and capitalizing on market opportunities. 

These companies are attractive for short-term investments due to their strong fundamentals and market resilience, but thorough research and consideration of various factors are crucial before making decisions.

Top 100 Stocks Companies: Overview

Check out the below tables presenting Short-Term Stocks categorized by Market Capitalization, EBITDA Margin, Interest Coverage Ratio, and Quick Ratio, along with their 1-year Return (%) numbers.

List of Best Short-Term Stocks by Market Capitalisation

Market capitalisation determines a company's size, with higher market caps indicating access to equity capital and debt using equity as collateral.

Disclaimer: All the net profits, and P/E ratios mentioned above are as of March 5,2024. However, it's important to conduct thorough research before making any investment decisions in these stocks.

List of Best Short-Term Stocks by Ebitda Margin

The EBITDA Margin is a crucial tool for evaluating a company's level of profitability.

Disclaimer: All the net profits, and P/E ratios mentioned above are as of March 5,2024. However, it's important to conduct thorough research before making any investment decisions in these stocks.

List of Best Short-Term Stocks by Interest Coverage Ratio

The Interest Coverage Ratio indicates a company's financial health in relation to the amount of interest payments it must cover.

Disclaimer: All the net profits, and P/E ratios mentioned above are as of March 5,2024. However, it's important to conduct thorough research before making any investment decisions in these stocks.

List of Best Short-Term Stocks by Quick Ratio

The Quick Ratio is a financial tool that assesses a company's financial stability, ensuring it has sufficient liquid assets to cover its liabilities.

Disclaimer: All the net profits, and P/E ratios mentioned above are as of March 5,2024. However, it's important to conduct thorough research before making any investment decisions in these stocks.

How to Identify the Stocks Under 100 Rs

Finding shares priced under Rs 100 through the use of financial ratios and market indicators necessitates a thorough examination of the state of the market and the financial health of the firm. Consider the following important actions and financial ratios:

• Stock Price: Seek stocks that are now trading for less than 100 rupees. The easiest criterion to apply to energy stocks under 100 is this one.
• Earnings Per Share (EPS): Assess the business's earnings per share. Energy stocks under 100 should have a higher EPS, which means the business is making more money per outstanding share. A cheap stock (less than 100 rupees) with respectable earnings per share (EPS) can be a smart deal.
• Cost-to-Profit Ratio (P/E) Ratio: The price-to-earnings (P/E) ratio evaluates the stock. Energy stocks under 100 may be cheap if the P/E ratio is lower. But it's crucial to take into account both the company's development forecasts and the industry average.
• Dividend Per Share (DPS): Find the finest dividend-paying share under 100. A steady and fair dividend per share might encourage investors and bring in some money.
• Net Profit Margin: Determine the net profit margin by dividing the net profit by the revenue. A larger net profit margin is a sign of effective cost control and profit generation for the business.
• Debt-to-Equity Ratio: A lower ratio indicates that the company's debt load is smaller than its equity. Businesses with smaller debt loads might be seen as less hazardous.
• Current Ratio: A company's assets over liabilities, or a current ratio above 1, is an indication of strong liquidity and financial health.

Factors to Consider Before Investing in the Best Short Term Stocks

Below are a few factors to consider before investing in short term stocks. 

• Investing in Value Stocks: You don't need a lot of money to start investing in value stocks. Even if you don't have much money right now, taking a long-term view of the stock market and being patient can make a big difference in your financial situation over time.
• Benefits of Compound Growth: Compound growth is great because it can slowly turn a small amount of money into a big sum over time. When you invest in value stocks, you can keep your money growing by holding onto the returns you earn from them.
• Safe Investing Strategy: With a low-risk approach, you can build up your savings over the long term by buying and holding onto good stocks that cost less than 100. Value investments can help expand your investment portfolio because they tend to have less risk and volatility.

Advantages & Disadvantages of Short-Term Investments 

Investing in short-term investments can offer several advantages and drawbacks worth considering.

Advantages of Investing in short-term investments

1. Lower Initial Investment Requirement: These stocks allow investors to enter the market with a smaller initial investment, making them accessible, especially for new investors with limited capital.
2. Potential for Higher Returns: While perceived as riskier due to their smaller market capitalization, these stocks can offer higher potential returns. Smaller companies often have more room for growth, potentially leading to rapid stock price appreciation if successful.
3. Diversification Potential: Investing in a variety of stocks under Rs. 100 from different sectors and industries can provide diversification benefits. Diversifying investments helps manage risk by spreading them across various stocks and asset classes.

Risks of Investing in Short term investments

1. Liquidity Issues: Stocks priced under Rs. 100 may have lower trading volumes and less liquidity than higher-priced stocks. This could make it challenging for investors to sell their shares quickly if needed.
2. Scams and Fraudulent Activity: Some companies may engage in fraudulent activities to artificially inflate their stock prices. If such fraud is uncovered, investors risk losing their entire investment.

Investors should weigh these factors carefully before investing in stocks under rs 100 to make informed decisions aligning with their financial goals and risk tolerance.

How to Invest in Short-Term Stocks?

Investing in short-term stocks can offer promising prospects for retail investors in India, but it's essential to approach these investments with caution and a focus on long-term goals. Firstly, conduct thorough research and analysis before investing in any stock, evaluating key financial metrics like earnings per share (EPS) and price-to-earnings ratios (P/E ratio) to assess the company's potential for growth.

Secondly, prioritise diversification and risk management by spreading your investment across various stocks from different industries and sectors. This strategy can help mitigate risks associated with market volatility. Additionally, consider implementing stop-loss orders to protect against significant declines in stock prices.

Conclusion
Retail investors in India can profit from investing in short-term stocks under Rs 100. By analyzing key financial metrics like EPS and P/E ratio, they can identify growth-potential stocks. Consider BlinkX, as a share market app, which provides a fast, user-friendly online trading experience with zero brokerage fees. Diversifying investments across sectors and implementing risk management strategies like stop-loss orders can mitigate market volatility. However, risks like liquidity issues and fraudulent activities should be considered. Informed decision-making and a long-term investment approach are crucial for effective short-term stock investments.