Best short-term stocks to buy: Expert recommends top picks for quick profits

Stocks to Buy: After six straight weeks in the red, the Indian stock market finally saw a breather this week. With only four trading sessions due to the Independence Day holiday on Friday, the benchmark Sensex and Nifty indices managed to post a modest recovery of around 1 per cent.

Market expert Vikas Sethi of Sethi Finmart believes this rebound may be the start of a broader recovery — and has identified three stocks he believes are well-positioned for short-term gains. His picks span the defence, housing finance, and infrastructure sectors — all backed by strong fundamentals and recent triggers.

1. Azad Engineering Price Target

Current Price: Rs 1,549.95
Target: Rs 1,590
Stop Loss: Rs 1,520

Sethi's top pick is Azad Engineering, a company that makes high-precision components for the aerospace, defence, energy, and oil & gas industries. It supplies major global names like GE, Honeywell, Mitsubishi Heavy Industries, and Siemens Energy.

With four manufacturing units in Hyderabad and a growing order book, the company recently posted an impressive June quarter — reporting Rs 29 crore in profit, up from Rs 17 crore a year ago. It also boasts 37 per cent EBITDA margins, low debt, and a consistently expanding client base.

“It’s a quality defence play with long-term potential and near-term upside,” says Sethi.

52-week range: Rs 1,128.40 – Rs 1,928
Recent movement: Up over 5 per cent in two weeks, but still down 15 per cent year-to-date.

2. Bajaj Housing Finance Price Target

Current Price: Rs 112.65
Target: Rs 125
Stop Loss: Rs 107

Next on the list is Bajaj Housing Finance, one of India’s biggest housing finance firms. It’s the second-largest in its category and ranks among the top 10 NBFCs in terms of assets.

Focused mainly on home loans, LAP, and developer financing, the company has built an AUM of Rs 1.2 lakh crore, operating across 20 states and 3 union territories.

Its Q1 results were solid, with profit rising to Rs 583 crore, up from Rs 483 crore a year ago. Importantly, its asset quality is among the best in the industry, with gross NPAs at 0.3 per cent and net NPAs at just 0.13 per cent.

"Despite the recent correction, the fundamentals remain rock solid,” Sethi adds.

52-week range: Rs 103 – Rs 188.45
Recent movement: Down 11 per cent YTD, offering a possible value entry point.

3. GMR Airports Infrastructure Price Target

Current Price: Rs 91
Target: Rs 95
Stop Loss: Rs 88

Sethi also recommends GMR Airports, calling it a quality infrastructure play with improving operational performance.

Despite a weak quarter, the company has halved its losses compared to last year and recently bagged a Rs 415.74 crore contract to develop a new cargo city — a move that could serve as a positive trigger.

The company’s airport operations are picking up, and a recent fee hike approval will likely aid revenues in the coming quarters.

52-week range: Rs 67.75 – Rs 98.20
Recent movement: Up 15 per cent this year, 29 per cent in the last six months.

What This Means for Investors

With markets showing early signs of stabilisation, experts suggest it's a good time for stock-specific buying rather than broad-based bets. Sethi’s picks reflect sectors aligned with India’s long-term growth story — defence manufacturing, affordable housing, and infrastructure development.

If the rebound continues, these counters could see short-term momentum, while also offering longer-term potential for investors looking beyond the noise.