Stocks to buy for the short term: Shriram Finance to Federal Bank 5 stocks in which AI sees up to 50% upside

By Admin

08 Jul, 2025

As the Indian stock market takes a breather amid uncertainties around the India-US trade deal and the early trends of Q1 results, savvy investors are now on the lookout for short-term opportunities that balance risk with potential upside. The Nifty 50 ended flat recently and is slightly in the red for the month, even after four months of consistent gains. However, positive sentiment in the broader markets   driven by hopes of stable economic growth and rising retail investor participation   continues to support select stock opportunities.

While long-term investors are advised to buy quality stocks on dips, short-term traders too can benefit by leveraging AI-based analytics and expert insights. Mint spoke with Tradonomy, a reputed financial services and wealth management firm, to identify high-potential short-term stocks. Using their proprietary quant-based framework, Tradonomy evaluated various parameters like ROE, ROA, P/B ratio, and valuation metrics to recommend five promising picks across diverse sectors   from finance to infrastructure and minerals.

Here are the top five stocks for short-term gains, each demonstrating up to 50% upside potential:

1. Shriram Finance

• Previous Close: ₹671.30
  
  

• Target Price: ₹940
  
  

• Upside Potential: 40%
  
  

Shriram Finance is a leading NBFC in India, focused on commercial vehicle and small-ticket retail lending. Its rural penetration and high-yield loan book are its standout features. The company recently reported a 29.7% rise in net profit with an impressive 22.8% net margin.

Key Metrics:

• ROA: 3.25% (well above industry average)
  
  

• P/B: 2.4 times
  
  

• Tradonomy Score: 78%
  
  

According to Tradonomy, "This stock combines value with momentum, making it a strong short-term and long-term bet in the financial space."

2. Federal Bank

• Previous Close: ₹215
  
  

• Target Price: ₹255
  
  

• Upside Potential: 19%
  
  

Federal Bank continues to show robust performance among mid-size banks, delivering 19.6% revenue growth and maintaining strong return ratios. With an expanding digital footprint and a healthy loan book, it's poised for continued growth.

Key Metrics:

• ROA: 1.15%, ROE: 12%
  
  

• Net margin: 14.8%
  
  

• P/B: 1.6 times
  
  

• Tradonomy Score: 80%
  
  

Tradonomy notes, "With solid fundamentals and an attractive valuation, Federal Bank is well-positioned in the evolving financial ecosystem."

3. Shilchar Technologies

• Previous Close: ₹5,681.05
  
  

• Target Price: ₹8,550
  
  

• Upside Potential: 50%
  
  

Shilchar Technologies is making waves in the power equipment segment, particularly in supplying transformers for telecom, solar, and industrial use. The company reported an outstanding 56% revenue growth and 42% ROE, making it a clear outperformer.

Key Metrics:

• Profit Margin: 23%
  
  

• ROA: 29.97%
  
  

• P/E: 44 times
  
  

• Tradonomy Score: 94%
  
  

Though premium-valued, the company’s growth and operational excellence make it a standout choice for investors eyeing the green energy and infra sectors.

4. AGI Infra

• Previous Close: ₹987.85
  
  

• Target Price: ₹1,165
  
  

• Upside Potential: 18%
  
  

Operating in North India’s affordable and mid-income housing space, AGI Infra is gaining investor attention for its solid execution. The company has consistently posted 28% net profit growth and holds a strong ROE of 22.6%.

Key Metrics:

• Net Margin: 20.5%
  
  

• P/E: 36.8
  
  

• Tradonomy Score: 88%
  
  

"AGI is set to benefit from rising demand in Tier-2 cities and government housing initiatives," said Tradonomy.

5. Ashapura Minechem

• Previous Close: ₹438.65
  
  

• Target Price: ₹543
  
  

• Upside Potential: 24%
  
  

Ashapura Minechem, a major player in industrial minerals like bauxite and bentonite, offers cyclical exposure with improving margins and a strong balance sheet. The company may have posted modest revenue growth (3.6% YoY), but its ROE of 23.8% and net margin of 10.8% suggest underlying strength.

Key Metrics:

• P/E: 14.3
  
  

• Tradonomy Score: 75%
  
  

"Given the rising global demand for minerals, Ashapura is positioned to benefit from a potential demand-driven uptrend," Tradonomy added.

Conclusion

Whether you're a retail investor looking to take advantage of market dips or a short-term trader seeking momentum plays, these five AI-selected stocks   Shriram Finance, Federal Bank, Shilchar Technologies, AGI Infra, and Ashapura Minechem   offer a diversified set of opportunities across sectors. Their strong fundamentals, paired with attractive valuations and market positioning, make them worth watching in the current market phase.