Top Stocks to Invest for Long Term in Indian Share Market (2024)

The stock market is a great way to build wealth over time. However, it’s important to have a long-term perspective and understand the benefits of investing in stocks for the long haul. Investing in the best stocks to buy for long term investment allows investors to ride out short-term market fluctuations and take advantage of compounding returns. In this article, we’ll discuss long-term stocks to invest in, how to pick them, and a list of best shares to buy for the long term.

Top Long Term Stocks to Buy in 2024 Based on 5Y Avg Net Profit Margin

When building a solid foundation for your investment portfolio, the key is to focus on long-term investment stocks for 2024. Therefore, let’s look at 10 best shares to buy today for the long term.

Name	Sub-Sector	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio	5Y Avg Net Profit Margin (%)
Indian Energy Exchange Ltd	Power Trading & Consultancy	16,836.63	184.90	47.99	61.01
HDFC Asset Management Company Ltd	Asset Management	87,774.44	4,093.00	45.18	59.02
Nippon Life India Asset Management Ltd	Asset Management	41,909.30	649.00	37.85	46.65
Central Depository Services (India) Ltd	Stock Exchanges & Ratings	25,477.10	2,387.00	60.79	45.87
Aptus Value Housing Finance India Ltd	Home Financing	17,177.18	337.00	28.07	42.53
SJVN Ltd	Renewable Energy	51,786.84	131.00	56.82	41.54
Sun Tv Network Ltd	TV Channels & Broadcasters	30,665.69	783.90	15.93	40.88
UTI Asset Management Company Ltd	Asset Management	13,106.63	1,025.00	17.12	38.14
Oberoi Realty Ltd	Real Estate	64,530.31	1,796.00	33.49	36.50
Five-Star Business Finance Ltd	Consumer Finance	24,057.84	829.85	28.78	36.22

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 2nd July 2024. This data is derived from Tickertape Stock Screener.

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

Best Long Term Investment Shares: An Overview

Let’s look at the long term investment stock companies that you might be interested in investing in.

Indian Energy Exchange Ltd

Founded in 2008, Indian Energy Exchange Ltd is a premier electricity exchange in India, facilitating trading in a range of electricity products. The company operates an automated platform for the physical delivery of electricity, providing an efficient and transparent marketplace for trading electricity.

As of 2nd July 2024, the market capitalisation is Rs. 16,836.63 cr. and the close price is Rs. 184.90. The PE ratio stands at 47.99. The 5-year average net profit margin is 61.01%, and the 5-year average return on equity is 46.07%. The 5-year historical revenue growth is 13.81%, with a 5-year historical EPS growth of 16.66%. The 1-year forward EPS growth is projected at 11.68%. Given its robust financial metrics and its 1st position in the list, some might consider it a potential stock to invest for long term.

HDFC Asset Management Company Ltd

HDFC Asset Management Company Ltd, founded in 1999, is one of India’s leading mutual fund houses, offering a diverse range of investment products, including equity, debt, and hybrid funds. The company is a joint venture between Housing Development Finance Corporation Limited (HDFC) and Standard Life Investments Limited.

As of 2nd July 2024, the market capitalisation is Rs. 87,774.44 cr. and the close price is Rs. 4,093.00. The PE ratio stands at 45.18. The 5-year average net profit margin is 59.02%, and the 5-year average return on equity is 30.42%. The 5-year historical revenue growth is 8.57%, with a 5-year historical EPS growth of 15.65%. The 1-year forward EPS growth is projected at 12.09%.

Nippon Life India Asset Management Ltd

Nippon Life India Asset Management Ltd, part of the Nippon Life Insurance group, is a prominent player in the Indian asset management industry. The company provides a wide range of financial products and services, including mutual funds, portfolio management, and advisory services.

As of 2nd July 2024, the market capitalisation is Rs. 41,909.30 cr. and the close price is Rs. 649.00. The PE ratio stands at 37.85. The 5-year average net profit margin is 46.65%, and the 5-year average return on equity is 22.56%. The 5-year historical revenue growth is 4.31%, with a 5-year historical EPS growth of 17.35%. The 1-year forward EPS growth is projected at 8.08%.

Central Depository Services (India) Ltd

Central Depository Services (India) Ltd, established in 1999, is one of India’s leading securities depositories. The company offers services such as dematerialization, rematerialization, and electronic settlement of securities, ensuring the smooth functioning of the securities market in India.

As of 2nd July 2024, the market capitalisation is Rs. 25,477.10 cr. and the close price is Rs. 2,387.00. The PE ratio stands at 60.79. The 5-year average net profit margin is 45.87%, and the 5-year average return on equity is 21.73%. The 5-year historical revenue growth is 29.89%, with a 5-year historical EPS growth of 29.86%. The 1-year forward EPS growth is projected at 14.19%.

Aptus Value Housing Finance India Ltd

Aptus Value Housing Finance India Ltd, founded in 2009, focuses on providing affordable housing finance to low and middle-income segments in India. The company aims to promote home ownership in under-served markets, offering loans for the purchase and construction of residential properties.

As of 2nd July 2024, the market capitalisation is Rs. 17,177.18 cr. and the close price is Rs. 337.00. The PE ratio stands at 28.07. The 5-year average net profit margin is 42.53%, and the 5-year average return on equity is 16.12%. The 5-year historical revenue growth is 33.16%, with a 5-year historical EPS growth of -2.88%. The 1-year forward EPS growth is projected at 22.66%.

SJVN Ltd

SJVN Ltd, established in 1988, operates in the renewable energy sector with a focus on hydroelectric power generation. The company is a joint venture between the Government of India and the Government of Himachal Pradesh and aims to develop and operate power projects to promote sustainable energy.

As of 2nd July 2024, the market capitalisation is Rs. 51,786.84 cr. and the close price is Rs. 131.00. The PE ratio stands at 56.82. The 5-year average net profit margin is 41.54%, and the 5-year average return on equity is 11.36%. The 5-year historical revenue growth is -0.97%, with a 5-year historical EPS growth of -7.72%. The 1-year forward EPS growth is projected at -22.41%.

Sun Tv Network Ltd

Sun Tv Network Ltd, founded in 1993, is one of India’s largest television networks, operating a variety of channels in multiple languages. The network offers a mix of entertainment, news, and regional programming, reaching millions of households across India and abroad.

As of 2nd July 2024, the market capitalisation is Rs. 30,665.69 cr. and the close price is Rs. 783.90. The PE ratio stands at 15.93. The 5-year average net profit margin is 40.88%, and the 5-year average return on equity is 23.53%. The 5-year historical revenue growth is 3.57%, with a 5-year historical EPS growth of 6.08%. The 1-year forward EPS growth is projected at 6.63%.

UTI Asset Management Company Ltd

UTI Asset Management Company Ltd, established in 2003, is one of India’s oldest and largest asset management companies. It offers a wide range of investment solutions including mutual funds, retirement solutions, and portfolio management services, catering to a diverse set of investors.

As of 2nd July 2024, the market capitalisation is Rs. 13,106.63 cr. and the close price is Rs. 1,025.00. The PE ratio stands at 17.12. The 5-year average net profit margin is 38.14%, and the 5-year average return on equity is 13.57%. The 5-year historical revenue growth is 10.04%, with a 5-year historical EPS growth of 16.71%. The 1-year forward EPS growth is projected at -9.67%.

Oberoi Realty Ltd

Oberoi Realty Ltd, founded in 1998, is a leading real estate developer in India known for its high-quality residential, commercial, and retail projects. The company focuses on premium developments in Mumbai and has a strong reputation for delivering projects with superior design and construction quality.

As of 2nd July 2024, the market capitalisation is Rs. 64,530.31 cr. and the close price is Rs. 1,796.00. The PE ratio stands at 33.49. The 5-year average net profit margin is 36.50%, and the 5-year average return on equity is 11.74%. The 5-year historical revenue growth is 12.59%, with a 5-year historical EPS growth of 17.92%. The 1-year forward EPS growth is projected at 18.30%.

Five-Star Business Finance Ltd

Five-Star Business Finance Ltd, founded in 1984, provides secured business loans to micro-entrepreneurs and self-employed individuals in India. The company focuses on lending to underserved segments, helping small business owners and entrepreneurs gain access to formal credit.

As of 2nd July 2024, the market capitalisation is Rs. 24,057.84 cr. and the close price is Rs. 829.85. The PE ratio stands at 28.78. The 5-year average net profit margin is 36.22%, and the 5-year average return on equity is 15.68%. The 5-year historical revenue growth is 40.37%, with a 5-year historical EPS growth of 32.03%. The 1-year forward EPS growth is projected at 27.09%.

Investing in Long Term Investment Stocks via smallcase

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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 are held for several years. These long term investment stocks are different from short-term stocks 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 the Best Long Term Stocks in India?

There are several ways to invest in stocks 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 sccount 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 target stock of your choosing. 

4. Monitor your investments regularly. 

Note: Investors should conduct thorough research of their own and consult a financial advisor before investing. 

How to Pick Investment Stocks For Long Term?

When selecting the best share to buy for long term, it’s important to consider a various factors. Here are a few key considerations:

• Company Financials: 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, and you can consider it one of the long-term investment stocks.
• Competitive Advantage: Consider buying stocks in India who have a competitive advantage, such as a strong brand, unique product, or proprietary technology.
• Market Trends: Search for companies that are well-positioned to capitalise on market trends, such as the transition towards renewable energy or the expansion of e-commerce.

Risks of Investing in Long Term Investment Stocks

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, especially in the short-term. Stock prices can fluctuate based on market conditions, economic indicators, and company-specific news.
• Lack of Liquidity: When you invest in best stocks for long term investment, 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 investing in long term shares.
• 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.

Advantages of Long Term Investment Stocks

Let’s look at the promising benefits of investing in long term investment stocks. 

• Potential for Higher Returns: Historically, the share market has provided share to buy in India with higher returns 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 term stocks, 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 stock for more than one year before selling it, you’ll pay a lower tax rate on any gains.
• Compounding: Shares to buy in long term allow you to take advantage of compounding. Thus, the longer you hold onto a stock, the more time it has to grow and increase in value. Resulting in significant gains over time.

Strategies to Select the Best Stock for Long Term Investment

Follow the given tips to select the best stocks to invest in 2024 India:

• Avoid Blindly Following Market Tips: Refrain from blindly acting on stock market tips, no matter how credible the source. Thoroughly research and analyse  long time investment share 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. Be realistic about market possibilities and promptly sell underperforming stocks in your portfolio to mitigate further losses. Pragmatic decision-making is crucial while investing in the best shares for long term investment.
• Manage Your Investment Budget Wisely: The best share for long term investment can be favourable. 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 best stocks for long term stocks success.

Factors to Consider Before Investing in Long Term Investment Stocks

Several factors can affect the best long-term stocks in India. 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 stock purchases, 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: Consider macroeconomic factors like interest rates and inflation that may impact a stock’s performance. 
• Transparency: Check if the company is transparent in its disclosures. Avoid investing in businesses that lack proper and sufficient disclosures, especially concerning related party transactions.

To Wrap It Up…

Long term investment stocks are a great way to build wealth over time, 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

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