Top Long Term Stocks to Buy in India for 2024
We all know someone who’s made a quick profit from stocks, but for most of us, the true magic happens over time. Investing in the stock market is a journey, one where patience and strategy are your best companions. It’s important to have a long-term perspective and understand the benefits of investing in stocks for the long haul. Some of the best long term stocks in India allow investors to ride out short-term market fluctuations and take advantage of compounding returns. In this article, we’ll discuss the best stocks to buy today in India for long term investment and strategies for identifying them them to achieve your financial goals.
Top 10 Stocks to Buy Today in India for Long Term (2024)
Let’s look at 10 best shares to buy today for long term based on 5Y average net profit margin.
Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | 5Y Avg Net Profit Margin (%) | 5Y Hist Op. Cash Flow Growth (%) | Return on Equity (%) | Debt-to-Equity Ratio (%) |
---|---|---|---|---|---|---|---|---|
Adani Ports and Special Economic Zone Ltd | Ports | 305,378.84 | 1,418.55 | 37.65 | 27.83 | 20.02 | 15.95 | 0.90 |
Kotak Mahindra Bank Ltd | Private Banks | 359,658.89 | 1,803.40 | 19.75 | 19.32 | 53.80 | 15.03 | 0.00 |
Adani Total Gas Ltd | Gas Distribution | 83,959.50 | 759.95 | 125.78 | 18.58 | 21.81 | 20.47 | 0.43 |
Hindustan Unilever Ltd | FMCG - Household Products | 669,339.81 | 2,818.80 | 65.13 | 16.62 | 21.68 | 20.16 | 0.03 |
Bajaj Auto Ltd | Two Wheelers | 328,809.08 | 11,889.10 | 42.66 | 16.52 | 21.40 | 26.43 | 0.07 |
Bharat Electronics Ltd | Electronic Equipments | 202,627.07 | 280.25 | 50.85 | 15.94 | 25.21 | 26.37 | 0.00 |
Zydus Lifesciences Ltd | Pharmaceuticals | 106,394.15 | 1,054.65 | 27.57 | 15.80 | 20.29 | 18.47 | 0.04 |
HCL Technologies Ltd | IT Services & Consulting | 480,771.63 | 1,789.45 | 30.62 | 14.85 | 20.13 | 23.49 | 0.08 |
Adani Power Ltd | Power Generation | 247,654.05 | 640.60 | 11.89 | 14.26 | 20.36 | 56.77 | 0.79 |
ICICI Bank Ltd | Private Banks | 873,581.01 | 1,236.60 | 19.74 | 14.15 | 26.44 | 18.02 | 0.00 |
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
Note: The data in this long term stocks list, including the long term share prices, is from 7th October 2024. This data is derived from Tickertape Stock Screener.
- Stock Universe: Nifty 100
- 5Y Net Profit Margin: Sort from highest to lowest
- 5Y Historical Operating Cash Flow: Set to High
- Return on Equity: Set to High
- Debt-to-Equity: Set to Low
🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.
Overview of the Best Long Term Stocks in India
When selecting the best stocks to buy today in India for long term investments, it’s important to focus on companies with strong fundamentals and future growth potential. Here are brief overviews of the top 10 shares to buy for long term listed above:
Adani Ports and Special Economic Zone Ltd
Adani Ports and Special Economic Zone Limited (APSEZ), India’s leading private port and Special Economic Zone enterprise, began as Gujarat Adani Port Ltd (GAPL) on 26 May 1998. The company developed a private port at Mundra on India’s west coast and focuses on developing, operating, and maintaining port infrastructure, including port services and related infrastructure projects. As of 7th October 2024, the company had a market capitalisation of Rs. 305,378.84 cr., and its share price closed at Rs. 1,418.55. Furthermore, the company had a 5-yr average net profit margin of 27.83%, a 5-yr average historical operating cash flow growth of 20.02%, and a return on equity (ROE) of 15.95%.
Kotak Mahindra Bank Ltd
Uday Kotak founded Kotak Capital Management Finance, an investment and financial services company, in 1985. He raised Rs. 30 lakh through a loan from family and friends to launch the business. In February 2003, Kotak Mahindra Finance Ltd. became Kotak Mahindra Bank, a private sector bank based in Mumbai, Maharashtra, India. As of 7th October 2024, the company had a market capitalisation of Rs. 359,658.89 cr., and its share price closed at Rs. 1,803.40. Furthermore, the company had a 5-yr average net profit margin of 19.32%, a 5-yr average historical operating cash flow growth of 53.80%, and an ROE of 15.03%.
Adani Total Gas Ltd
Adani Total Gas develops City Gas Distribution (CGD) networks to supply Piped Natural Gas (PNG) to industrial, commercial, and residential sectors, and Compressed Natural Gas (CNG) to the transport sector. Additionally, a consortium of Adani Total Gas Ltd and Indian Oil Corporation Ltd (IOCL) is responsible for developing gas distribution in Allahabad, Chandigarh, Ernakulam, Panipat, Daman, Dharwad, and Udhamsingh Nagar. As of 7th October 2024, the company had a market capitalisation of Rs. 83,959.50 cr., and its share price closed at Rs. 759.95. Furthermore, the company had a 5-yr average net profit margin of 18.58%, a 5-yr average historical operating cash flow growth of 21.81%, and an ROE of 20.47%.
Hindustan Unilever Ltd
Hindustan Unilever Limited (HUL) is an Indian FMCG company based in Mumbai and a subsidiary of the British multinational Unilever. HUL offers a wide range of products, including foods, beverages, cleaning agents, and personal care items. As of 7th October 2024, the company had a market capitalisation of Rs. 669,339.81 cr., and its share price closed at Rs. 2,818.80. Furthermore, the company had a 5-yr average net profit margin of 16.62%, a 5-yr average historical operating cash flow growth of 21.68%, and an ROE of 20.16%.
Bajaj Auto Ltd
Bajaj Auto Limited, headquartered in Pune, is an Indian multinational company specialising in manufacturing motorcycles, scooters, and auto rickshaws. Jamnalal Bajaj founded the company in the 1940s and is a key part of the Bajaj Group, a prominent Indian business conglomerate. As of 7th October 2024, the company had a market capitalisation of Rs. 328,809.08 cr., and its share price closed at Rs. 11,889.10. Furthermore, the company had a 5-yr average net profit margin of 16.52%, a 5-yr average historical operating cash flow growth of 21.40%, and an ROE of 26.43%.
Bharat Electronics Ltd
Among the best long term stocks in India, Bharat Electronics Limited (BEL) was founded in 1954. They are a Navratna Public Sector Undertaking with a strong presence in India’s defence sector. The company specialises in designing, developing, manufacturing, supplying, and providing life cycle support for a range of strategic electronic products and systems. As of 7th October 2024, the company had a market capitalisation of Rs. 202,627.07 cr., and its share price closed at Rs. 280.25. Furthermore, the company had a 5-yr average net profit margin of 15.94%, a 5-yr average historical operating cash flow growth of 25.21%, and an ROE of 26.37%.
Zydus Lifesciences Ltd
Zydus Lifesciences Ltd., previously known as Cadila Healthcare Ltd., is a leading pharmaceutical company in India focused on innovation. The company operates across the entire pharmaceutical value chain, from research and development to manufacturing, marketing, and sales. As of 7th October 2024, the company had a market capitalisation of Rs. 106,394.15 cr., and its share price closed at Rs. 1,054.65. Furthermore, the company had a 5-yr average net profit margin of 15.80%, a 5-yr average historical operating cash flow growth of 20.29%, and an ROE of 18.47%.
HCL Technologies Ltd
HCL Technologies Limited is a global leader in IT services, specialising in digital transformation for businesses worldwide. The company offers a broad range of services, including software development, business process outsourcing, and infrastructure management. As of 7th October 2024, the company had a market capitalisation of Rs. 480,771.63 cr., and its share price closed at Rs. 1,789.45. Furthermore, the company had a 5-yr average net profit margin of 14.85%, a 5-yr average historical operating cash flow growth of 20.13%, and an ROE of 23.49%.
Adani Power Ltd
Adani Power Limited (APL), a part of the Adani Group, sells power generated from its plants across Gujarat, Maharashtra, Rajasthan, Karnataka, Chhattisgarh, and Madhya Pradesh. APL supplies 1,600 MW (with 800 MW operational) to Bangladesh, while the remaining 13,650 MW serves India. In 2018, APL secured 13 of 84 city gas licences. In 2022, Adani Power partnered with IHI and Kowa for sustainable power generation. As of 7th October 2024, the company had a market capitalisation of Rs. 247,654.05 cr., and its share price closed at Rs. 640.60. Furthermore, the company had a 5-yr average net profit margin of 14.26%, a 5-yr average historical operating cash flow growth of 20.36%, and an ROE of 56.77%.
ICICI Bank Ltd
The Industrial Credit and Investment Corporation of India (ICICI) began operations on January 5, 1955, under the chairmanship of Sir Arcot Ramasamy Mudaliar. Established as a government institution, it was a joint venture between the World Bank, India’s public-sector banks, and public-sector insurance companies, with a primary mission to provide project financing for Indian industries. As of 7th October 2024, the company had a market capitalisation of Rs. 873,581.01 cr., and its share price closed at Rs. 1,236.60. Furthermore, the company had a 5-yr average net profit margin of 14.15%, a 5-yr average historical operating cash flow growth of 26.44%, and an ROE of 18.02%.
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What are Long Term Investment Stocks?
Long term investment stocks mean investing in companies with strong fundamentals and growth potential that have been held for several years. A long term investment in shares is different from short-term shares because the latter are typically bought and sold quickly to make a short profit. Thus, the long term investing strategy involves buying and holding long term investment stocks that are focused on the company’s long-term growth prospects and fundamentals.
How to Invest in Stocks for Long Term?
If you’re wondering “how to buy long term shares”, we’re here to help you. There are several ways to invest in the best shares to invest for long term, including buying individual stocks, mutual funds, and exchange-traded funds(ETFs). Buying individual stocks allows investors to handpick their holdings but carries a higher level of risk. Mutual funds and ETFs provide diversification and lower risk but may offer different potential for high returns. Investors should choose the best long term stocks to buy that best align with their investment goals and risk tolerance. Here is how investors can invest in long term stocks in India:
1. Open a Demat/Trading/Brokerage account. Investors can open a demat account with smallcase.
2. Conduct thorough research into the stocks that may seem suitable to you for the leng term. Investors can utilise the Tickertape Stocks Screener to research the past performance of the long term stocks, using the 200+ filters available.
3. Place a ‘Buy’ order on the long term stocks of your choosing.
4. Monitor your investments regularly.
Note: Investors should conduct thorough research of their own and consult a financial advisor before investing.
Why Invest in Long Term Stocks in India?
Investing in the best Indian stocks for the long term offers multiple benefits. It provides the potential for returns to grow over time and allows you to capitalise on India’s expanding economy. Investing in a diverse range of industries and established companies with strong track records can also help manage short-term market fluctuations. Additionally, some stocks may offer the opportunity for regular monthly dividends. Long term investment in shares helps you tap into the country’s growth potential, supported by a rising middle class and increasing consumer spending, which can lead to steady returns over the long term. Many financial analysts provide valuable stock market suggestions that can guide your investment choices. Staying updated with these insights can help you identify potential growth opportunities.
How to Identify Stocks for Long-Term in India?
When selecting which share to buy for long term, it’s important to consider various factors. Here are a few key considerations that may help investors determine which shares to buy for long term:
- Company Financials: When identifying stocks to buy today in India for long term growth, look for companies that not only perform well currently but also have a promising outlook for the next 5 to 10 years. This ensures that your investment grows steadily over time. Investors can look for companies with strong financials, including a healthy balance sheet, positive cash flow, and solid earnings growth.
- Management Team: A strong management team with a track record of success can help ensure the company’s well-being These companies can be included in some of the best long term shares to buy in India.
- Competitive Advantage: While looking for the best stocks to buy today for long term investments, consider searching for shares that have a competitive advantage. This includes certain criteria like a strong brand, unique product, or proprietary technology.
- Market Trends: Investors can search for the best stocks to invest in for long-term growth that are well-positioned to capitalise on market trends, such as the transition towards renewable energy or the expansion of e-commerce.
When considering investments in the top stocks for long term, it’s crucial to take note of expert stock market suggestions that ensuring your portfolio is well-positioned for growth.
Risks of Investing in Long Term Investment Stocks in India
While many praise long-term investment stocks for their potential to yield substantial returns over extended periods, one might encounter certain challenges, such as:
- Volatility: Investing in the stock market can be volatile. Stock prices of even the best long-term stocks can fluctuate based on market conditions, economic indicators, and company-specific news.
- Lack of Liquidity: When you invest in the best share to buy for long term in India, you’re tying up your money in an asset that may be challenging to sell quickly. If you need access to your money in the short-term, there may be better options than long term shares to invest in India.
- Company-specific Risks: Investing in a single company’s stock exposes you to company-specific risks, such as poor management, legal issues, or competitive threats. Even the best stocks to invest for long term are susceptible to these risks.
Advantages of Long Term Investment Stocks
Let’s look at the promising benefits of investing in long term investment stocks in India.
- Potential for Higher Returns: Historically, the share market has provided higher returns in the long term compared to other asset classes such as bonds, cash, and real estate.
- Time in the Market, Not Timing the Market: Trying to time the market can take time and effort. When investing in the best long time investment shares, you don’t have to worry about timing the market or short-term fluctuations.
- Lower Taxes: Long-term capital gains tax rates are lower than short-term capital gains tax rates. Therefore, if you hold onto a long term stock investment for more than one year before selling it, you’ll pay a lower tax rate on any gains.
- Compounding: Long term stocks to buy in India allow you to take advantage of compounding. Thus, the longer you hold onto a stock to buy for long term, the more time it has to grow and increase in value. Resulting in significant gains over time.
Strategies to Identify the Best Stock for Long Term Investment
Investors aiming for long-term wealth creation should focus on accumulating the best long term stocks in India that offer steady returns and dividend payouts. Here are a few strategies you can explore to understand which stocks to buy for long term:
- Avoid Blindly Following Market Tips
Refrain from blindly acting on stock market tips, no matter how credible the source. Thoroughly research and analyse the best shares to buy for long term before making decisions. While some tips may yield significant benefits, others pose the risk of substantial losses.
- Remove Underperforming Stocks from Your Portfolio
Recognise that a stock’s previous decline may not guarantee a future rise. It can be helpful to be realistic about market possibilities and promptly sell underperforming long term share investments in your portfolio to mitigate further losses. Pragmatic decision-making is crucial while considering top stocks to invest in for the long term.
- Manage Your Investment Budget Wisely
You should avoid hastily exceeding your investment budget. Allocate a fixed amount across diverse high-performing stocks instead of concentrating on one. Diversify your investments strategically to safeguard against undue risks and enhance long-term growth prospects.
- Adopt and Stick to Your Investment Strategy
Choose a reliable investment strategy aligned with your goals before investing in the best share to invest for long term. Conduct thorough fundamental and technical analyses, utilise stock screeners, and make informed decisions. A disciplined approach enhances your ability to select the top shares to buy for long term success.
- Diversify Your Portfolio
While there are several great stocks to buy today in India for long term growth, it’s equally important to diversify your portfolio. Spreading investments across different sectors helps mitigate risks and ensures your long-term strategy remains resilient, even during market downturns.
Who Should Invest in Long Term Stocks in India?
Investing in long-term stocks can be advantageous for various individuals. Here are five key groups who might benefit from this strategy:
Young Professionals and New Investors
Young professionals and beginners have time on their side, making long-term investing particularly beneficial. Starting early allows them to take advantage of compounding, navigate market fluctuations, and benefit from long-term market growth.
Middle-Aged Individuals and Parents
Middle-aged individuals and parents saving for future needs can also gain from long-term investments. Diversifying with the best stocks for long term investments helps balance growth and security, building substantial funds for retirement or children’s education.
Retirees and Conservative Investors
Retirees and those favouring stability often seek investments that provide steady income. Companies with consistent earnings and regular dividends, such as blue-chip stocks, offer reliable returns and inflation protection.
Aggressive Investors and Entrepreneurs
Those looking for high returns, including aggressive investors and entrepreneurs, may target growth stocks in emerging sectors. Investing in these rapidly growing industries can lead to significant gains from innovation and expansion.
High-Net-Worth Individuals and Institutional Investors
High-net-worth individuals and institutions, like pension funds and insurance companies, seek stable, high-performing stocks to ensure consistent returns. A well-chosen selection of the best shares to buy in India for long term can offer a balance of growth and stability.
Factors to Consider Before Investing in Long Term Investment Stocks
Several factors can affect the best stocks in India for long term growth. These factors affecting the long term investment in share market include:
- Financial Performance: Evaluate the company’s revenue growth trends, profitability metrics like net income and operating margins, and cash flow to ensure a healthy business.
- Growth Potential: When considering long term investments, including the best company to invest for long term, investors can look for companies that drive innovation and growth. A company that doesn’t build full-proof products backed by recent technology and innovation is bound to lose compared to the one that does.
- Macroeconomic Factors: Investors can consider macroeconomic factors like interest rates and inflation that may impact the performance of even the best companies to invest in long term.
- Transparency: Check if the company is transparent in its disclosures. Investors should avoid investing in businesses that lack proper and sufficient disclosures, especially concerning related party transactions.
To Wrap It Up…
Investing in the best stocks to buy today in India for long term can be a game-changer for your portfolio, but it requires patience and a long-term perspective. By selecting strong companies with a proven track record of growth and diversifying holdings, investors can minimise risk and take advantage of long-term trends. It’s never too late to start investing in shares for long term, and with careful research and planning, anyone can build a successful long-term investment portfolio.
Frequently Asked Questions on Long Term Investment Stocks
Based on the 5-year net profit margin, here is a list of the best stocks to buy for long term in India 2024.
1. Adani Ports and Special Economic Zone Ltd
2. Kotak Mahindra Bank Ltd
3. Adani Total Gas Ltd
4. Hindustan Unilever Ltd
5. Bajaj Auto Ltd
Note: The data on this list of the best stocks to buy today for long term is from 7th October 2024.
Start by researching companies with strong fundamentals, such as consistent revenue growth and solid earnings. Focus on sectors with growth potential, like technology and healthcare. Evaluate market leaders and those with a history of paying dividends for added stability. Read up on financial news and stock market suggestions from experts, and use stock analysis tools to gather insights. Lastly, diversify your portfolio to manage risk effectively.
Some investors can hold penny stocks for a longer period of time, hoping for multibagger returns. However, it is difficult to say for sure whether any of these penny stocks will deliver long term returns.
Investing in shares for the long term is generally considered a stable strategy, but like all investments, it comes with certain risks. Analysing past performance can help identify the best long term stocks in India. To make the most of this approach, it’s crucial to research thoroughly, diversify your investments, and focus on companies with strong fundamentals and growth potential.
Long term trading is generally seen as a more cautious approach than short-term selling. For conservative investors, the value of holding shares depends on their risk tolerance and financial objectives. Typically, these investors might invest a small portion of their portfolio in stocks, maintaining a diversified portfolio that prioritises security and steady income.
Short-term stock dealing, or trading, involves buying and selling the best stocks for short term over a brief period, ranging from a few days to a few months. The aim is to capitalise on short-term price movements to achieve quick profits from the top short term share to buy today. In contrast, long-term investing involves holding stocks for several years or even decades. The goal is to benefit from a company’s sustained growth and the compounding effects of steady returns over time.
Stocks generally come with risks, but large-cap stocks are usually less risky compared to mid and small-cap stocks. The Nifty 50 stocks represent the top 50 performers in their sectors, known for their strong business performance and stability. These best shares to buy today in India for the long term are often seen as high-quality, blue-chip stocks. Investing in stocks does involve risks. When choosing stocks to invest in for the long term in 2024, it’s important to assess risks based on your financial goals and investment timeline.
Reliable stock market suggestions can be found through financial news websites, investment platforms, and advice from financial analysts. It’s important to cross-reference multiple sources to ensure informed decision-making
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