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

Stocks to buy for the short term: The Indian stock market has been rangebound in the last few sessions as investors seek clarity on the India-US trade deal and await early trends of the Q1 results.

The Nifty 50 ended flat on Monday. After four consecutive months of gains, it is in the red for the month so far.

However, the broader market trends remain positive due to expectations of durable and healthy economic growth in the country and a strong influx of retail investors.

Experts suggest at this juncture, one should consider picking quality stocks at dips for the long term.

Mint spoke to Tradonomy, a financial services and wealth management firm, for stock recommendations suitable at this juncture. The firm suggested five short-term buys.

Tradonomy, using its proprietary quant-based framework, identifies companies with strong fundamentals, efficient capital use, attractive valuations, and durable growth potential.

“This week’s list features five standout stocks ranging from power equipment to finance, each evaluated on metrics most relevant to its sector. Whether it’s ROE (return on equity) for manufacturers or ROA (return on assets) and P/B (price-to-book) for lenders, these stocks demonstrate the right balance of performance, positioning, and price,” Tradonomy said.

Stocks to buy for the short-term

Shriram Finance | Previous close: ₹671.30 | Target price: ₹940 | Upside potential: 40%

Shriram Finance is among India’s leading NBFCs, specialising in commercial vehicle and small-ticket retail lending. Its strength lies in deep rural reach and high-yield lending.

The company posted 29.7 per cent net profit growth and a healthy 22.8 per cent net margin. What sets it apart is its strong ROA of 3.25 per cent, far above industry averages, which shows asset-side efficiency.

“The stock trades at a modest P/B of 2.4 times, offering a cushion for long-term investors. With a Tradonomy score of 78 per cent, it reflects both value and momentum in a segment critical to India’s credit penetration story,” said Tradonomy.

Federal Bank | Previous close: ₹215 | Target price: ₹255 | Upside potential: 19%

Federal Bank continues to outperform peers in the mid-size banking segment. With 19.6 per cent revenue growth and improving return ratios (ROA: 1.15 per cent, ROE: 12 per cent), it balances loan book quality with digital agility. Net margins at 14.8 per cent and a low P/B of 1.6 times make valuation attractive.

“At a Tradonomy score of 80 per cent, the bank reflects solid fundamentals and upside potential. With a strong deposit franchise and expanding retail credit book, Federal Bank is well-positioned for the next phase of financial sector growth,” said the financial firm.

Shilchar Technologies | Previous close: ₹5,681.05 | Target price: ₹8,550 | Upside potential: 50%

Shilchar is a rising star in the power equipment space, supplying transformers to telecom, solar, and industrial segments. 

With stellar 56 per cent revenue growth and an industry-leading 42 per cent ROE, it demonstrates both scale and capital efficiency. Its 23 per cent profit margin and 29.97 per cent RoA highlight operational strength.

“The company trades at a premium (P/E of 44 times), but rightly so, given the deep moat and future readiness. With a Tradonomy score of 94 per cent, Shilchar is a textbook case of high-quality growth in an underpenetrated sector,” said Tradonomy.

AGI Infra | Previous close: ₹987.85 | Target price: ₹1,165 | Upside potential: 18%

AGI Infra is quietly building value in North India’s affordable housing and mid-income real estate segment. With consistent 28 per cent net profit growth and strong ROE of 22.6 per cent, it combines margin discipline (20.5 per cent) with real estate demand tailwinds.

“At a P/E of 36.8, it’s not cheap, but its execution and regional moat justify the multiple. The stock also scores 88 per cent on Tradonomy’s model, driven by reliable business strength and steady expansion. AGI stands to benefit from government housing incentives and rising tier-2 demand,” said the financial firm.

Ashapura Minechem | Previous close: ₹438.65 | Target price: ₹543 | Upside potential: 24%

Ashapura Minechem is a global supplier of industrial minerals, with a strong presence in bauxite, bentonite, and value-added specialty products. 

While top-line growth has been moderate (3.6 per cent YoY), its ROE of 23.8 per cent and improving net margins (10.8 per cent) make it a stable earnings compounder.

“With a reasonable valuation (P/E of 14.3 times), Ashapura offers cyclical exposure with strong balance sheet support. Its Tradonomy score of 75 per cent reflects decent value and profitability. As global mineral demand rises, Ashapura is positioned for a demand-led rebound,” said the financial firm.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.