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Mint
4 days ago
- Business
- Mint
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. 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 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 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 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 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. Read all market-related news here Read more stories by Nishant Kumar 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.
Mint
30-06-2025
- Business
- Mint
Stocks to buy for the long term: Mazagon Dock, GRSE, to BEL — 10 stocks in which AI sees up to 184% upside
Stocks to buy for the long term: The Indian stock market is set to end the first half of calendar year 2025 (H1CY25) with a decent gain of 8 per cent, despite significant headwinds such as geopolitical tensions, tariff-related uncertainties, and weak corporate earnings. With earnings recovering amid favourable growth-inflation dynamics, easing geopolitical tensions, and waning concerns over US tariffs, hopes are high that the domestic market will hit record highs in the second half of the year. Experts believe this is the right time to buy the dips. They suggest picking quality stocks with strong long-term fundamentals. Mint spoke to Tradonomy—a financial services and wealth management firm—for stock recommendations suitable at this juncture. The firm suggested 10 stocks to buy for the long term. Tradonomy handpicked these stocks using its proprietary quant scoring model, which analyses valuation, growth, trend, and business quality across 50+ indicators. Final picks were validated using key financial metrics like ROE (return on equity), profit margin, revenue growth, and cash flow, and justified using sectoral valuation benchmarks to estimate fair target prices. Mazagon is India's premier submarine builder, with 19 per cent revenue growth and consistently strong margins. Zero debt and high government visibility make it a defensive growth story. "With a 93 per cent Tradonomy score, it's a top-rated stock in our system. As India upgrades its naval strength, Mazagon's order book will remain full for years to come," said the financial firm. Motilal Oswal is a full-service financial powerhouse in broking, wealth, and asset management. With 18 per cent revenue growth, solid ROE, and decent margins, it's riding the retail investing boom and is a scalable platform for India's financialisation. "Cash flow remains healthy, and the 92 per cent Tradonomy score underscores quality and trend strength," said the financial firm. ACE is India's leading construction equipment manufacturer, primed to benefit from the infrastructure and logistics push. With government spending and private capex rising, ACE is well-positioned for multi-year expansion. With 14.6 per cent revenue growth, 25 per cent ROE, and 12 per cent net margins, it shows robust operating efficiency. "Cash flow conversion is strong, and the stock scores 94 per cent on Tradonomy, our highest conviction indicator," said the financial firm. Cummins powers India's infra backbone, supplying engines to railways, real estate, and data centres. With 15.5 per cent revenue growth, 26 per cent ROE, and steady margins, the company benefits from cyclical recovery and export demand. Its global quality and local scale make it a dependable long-term industrial play. "At a 90 per cent Tradonomy score, Cummins reflects high valuation strength and business stability," said the financial firm. Nippon AMC benefits from the structural shift toward mutual funds. With 24 per cent revenue growth and a 30 per cent ROE, it's among the most profitable AMCs in the country. It operates an asset-light model with excellent cash conversion. "The 89 per cent Tradonomy score confirms strong trend and growth momentum. It's a steady wealth compounder for the next decade," said the financial firm. CDSL is the digital custodian of India's equity markets. With 32 per cent YoY revenue growth and a stellar 49 per cent net profit margin, it runs a high-margin, low-capex model. ROE stands tall at 30 per cent with healthy cash flow backing. As equity culture deepens in India, CDSL becomes a quiet compounder. "Tradonomy scores it at 90 per cent, reflecting strong trends and business quality," said the wealth management firm. Garden Reach is a defence PSU building warships for India's coastal forces. A sharp 39 per cent year-on-year (YoY) revenue growth signals robust execution. ROE is healthy, and business fundamentals are strong. As defence indigenisation deepens, GRSE stands to benefit from government contracts and maritime expansion. "With a Tradonomy score of 89 per cent, it's catching investor attention," Tradonomy said. BEL is India's defence electronics powerhouse, delivering 17 per cent revenue growth and a healthy 27 per cent ROE. Its core strength lies in long-term government contracts, radar and missile systems, and increasing exports. Though cash flow conversion is low due to capex, margins remain solid. BEL is a strategic long-term bet on India's defence modernisation. "BEL's 88 per cent Tradonomy score confirms its high-quality franchise," Tradonomy said. Force Motors is transitioning from utility vehicles to a premium auto and defence mobility brand. It posted 15.6 per cent revenue growth and an impressive 26 per cent ROE, backed by BMW/Mercedes engine supply contracts. Its high 1.2 times cash conversion ratio shows capital efficiency. "Tradonomy score of 89 per cent, it's an under-the-radar compounder riding the auto-electrification curve," said the financial firm. Solar Industries leads in industrial explosives and is expanding into defence propellants and rocket tech. With 24.5 per cent revenue growth, high ROE, and two times cash conversion, it blends deep moats with futuristic segments. "The 87 per cent Tradonomy score and expanding global footprint make it a long-term asymmetric bet on India's defence-tech manufacturing," said Tradonomy. Read all market-related news here Experts believe this is the right time to buy the dips. Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
