In the dynamic world of the stock market, short-term investments can offer opportunities, especially for those looking to capitalise on market fluctuations. This approach focuses on buying and selling stocks within a short period. In this article, check the best short-term stocks in February 2025, based on the 1-yr returns and also learn the benefits and risks of investing in short-term stocks.
Best Short-Term Stocks in February 2025 – Based on 1yr Returns
Name | 1Y Return (%) ↓ | Market Cap (₹ in crore) | PE Ratio |
Trent Ltd | 89.62 | 2,04,415.95 | 137.49 |
Mahindra and Mahindra Ltd | 86.67 | 3,82,424.28 | 33.94 |
Zomato Ltd | 69.84 | 2,12,609.72 | 605.73 |
Divi’s Laboratories Ltd | 63.99 | 1,61,836.28 | 101.15 |
Bharat Electronics Ltd | 56.57 | 2,07,963.21 | 52.19 |
Vedanta Ltd | 54.13 | 1,70,966.30 | 40.33 |
Bharti Airtel Ltd | 49.34 | 9,94,278.72 | 133.16 |
Info Edge (India) Ltd | 48.70 | 99,709.64 | 173.35 |
Bajaj Holdings and Investment Ltd | 40.93 | 1,30,612.39 | 17.97 |
Eicher Motors Ltd | 40.13 | 1,49,404.93 | 37.34 |
Note: The best short-term stocks list provided here is as of February 5, 2025. The stocks are picked from the Nifty 100 universe and sorted based on the 1-yr returns.
Overview of the Best Short-Term Stocks in February 2025
1. Trent Ltd
Trent is involved in the retailing of apparel, accessories, footwear, and more. In Q2 FY25, the company reported revenues, including GST, of ₹4,394 crore, reflecting a 39% growth compared to ₹3,164 crore in Q2 FY24 and a CAGR of 37% over Q2 FY20. The Profit Before Tax (PBT) for Q2 FY25 stood at ₹467 crore, marking an increase of 49% from ₹314 crore in Q2 FY24 and showcasing a CAGR of 65% over Q2 FY20.
Key Metrics:
- ROE: 43.95%
- ROCE: 40.72%
2. Mahindra and Mahindra Ltd
Mahindra & Mahindra Ltd is amongst the most diversified automobile companies in India with a presence across 2-wheelers, 3-wheelers, PVs, CVs, tractors and earthmovers. In Q2 FY25, the company reported consolidated revenue of ₹37,924 crore, reflecting a 10% year-on-year growth compared to ₹34,436 crore in Q2 FY24. The Profit After Tax (PAT) stood at ₹3,171 crore, showcasing a 35% increase from ₹2,348 crore in the same quarter of the previous year.
Key Metrics:
- ROE: 15.37%
- ROCE: 14.74%
3. Zomato Ltd
Zomato is a prominent online food service platform, known for its extensive offerings such as food delivery, dining-out services, and more. For the quarter ending December 31, 2024, the company reported that the Gross Order Value (GOV) for the B2C business reached ₹20,206 crore, marking a 57% increase. Adjusted revenue stood at ₹5,746 crore, reflecting a 58% growth, while adjusted EBITDA surged by 128% to ₹285 crore.
Key Metrics:
- ROE: 1.76%
- ROCE: 1.71%
4. Divi’s Laboratories Ltd
Divi’s Laboratories Ltd is involved in the manufacturing and exporting of APIs, intermediates and nutraceutical ingredients. The company reported a consolidated total income of ₹2,401 crores for the quarter ending December 31, 2024, compared to ₹1,950 crores in the same quarter last year. The profit after tax (PAT) for the quarter stood at ₹589 crores, up from ₹358 crores in the corresponding period of the previous year.
Key Metrics:
- ROE: 12.15%
- ROCE: 15.28%
5. Bharat Electronics Ltd
Bharat Electronics Ltd (BEL) is involved in the manufacturing and supply of electronic equipment and systems to the defence sector. It is a Navratna Defence PSU. The company also has a limited presence in the civilian market. The company recorded a turnover of ₹5,643.25 crore in the third quarter of FY 2024-25, marking a growth of 36.97% compared to ₹4,120.10 crore in the same period last year. The PAT for the quarter stood at ₹1,316.06 crore, reflecting a 47.33% increase from ₹893.30 crore reported in the corresponding period of the previous year.
Key Metrics:
- ROE: 26.37%
- ROCE: 30.17%
Best Short-Term Mid-Cap Stocks in Feb 2025 – Based on 1yr Returns
Name | 1Y Return (%) ↓ | Market Cap (₹ in crore) |
Dixon Technologies (India) Ltd | 137.56 | 89,708.26 |
BSE Ltd | 116.28 | 75,341.68 |
Mazagon Dock Shipbuilders Ltd | 110.12 | 88,592.33 |
PB Fintech Ltd | 77.23 | 78,159.28 |
Bharti Hexacom Ltd | 69.19 | 69,005 |
Note: The best short-term stocks list provided here is as of February 5, 2025. The stocks are picked from the Nifty Midcap 100 universe. The ROE and ROCE are positive and sorted based on the 1-yr returns.
Best Short-Term Small-Cap Stocks in Feb 2025 – Based on 1yr Returns
Name | 1Y Return (%) ↓ | Market Cap (₹ in crore) |
Aegis Logistics Ltd | 90.86 | 26,632.13 |
Garden Reach Shipbuilders & Engineers Ltd | 73.34 | 17,431.95 |
Blue Star Ltd | 72.64 | 41,474.56 |
Firstsource Solutions Ltd | 66.17 | 23,010.17 |
Triveni Turbine Ltd | 63.08 | 18,231.83 |
Note: The best short-term stocks list provided here is as of February 5, 2025. The stocks are picked from the Nifty Smallcap 100 universe. The ROE and ROCE are positive and sorted based on the 1-yr returns.
Benefits of Investing in Short-Term Stocks
- Quick Returns: Short-term investments can allow investors to capitalise on market fluctuations and earn within a short duration.
- Liquidity: Short-term stocks are easier to buy and sell, offering higher liquidity for investors needing immediate access to funds.
- Market Opportunities: Rapid price movements create opportunities to benefit from news events, earnings reports, or market trends.
- Diversification: Short-term investments can complement long-term investments, helping investors balance their portfolios.
Risks of Investing in Short-Term Stocks
- Market Volatility: Prices of short-term stocks can be highly volatile, leading to sudden losses.
- Transaction Costs: Frequent buying and selling incur brokerage fees, reducing net gains.
- Emotional Decisions: Quick trades may lead to impulsive decisions, increasing the likelihood of losses.
Conclusion
Short-term investments can be beneficial to achieve immediate goals, such as planning a trip or purchasing a car. It’s vital to assess your investment objectives and risk tolerance before making a decision. Additionally, evaluate the company’s operations, financial health, and future outlook.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.