Best Long-Term Stocks in India (2025)

Long-term stocks are equity investments held for more than 1 year and qualify for long-term capital gains (LTCG) tax. Many investors, however, consider a horizon of 5 years or more to benefit from compounding, steady growth, and companies with strong fundamentals, consistent earnings, and sustainable business models. Choosing the right stock for long-term investment helps build wealth steadily over time.

Here is how you can invest in the best long-term stocks:

1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
2. Conduct thorough research into the top long-term stocks in India using Tickertape Stocks Screener. The screener offers over 200 built-in filters, allowing investors to select parameters and generate a list of long-term stocks.
3. Place a ‘Buy’ Order on the top long-term stocks that align with your investment thesis.

1. Bajaj Finance Ltd: Bajaj Finance Ltd is a leading non-banking finance company in India, providing consumer loans, SME lending, and wealth management services. It’s known for strong growth and innovative digital platforms.
2. Adani Ports and Special Economic Zone Ltd: Adani Ports operates India’s largest private port network, handling cargo, logistics, and special economic zones. The company plays a significant role in India’s trade infrastructure and global supply connectivity.
3. Eicher Motors Ltd: Eicher Motors Ltd manufactures Royal Enfield motorcycles and commercial vehicles through VE Commercial Vehicles. It’s recognised for engineering excellence, global reach, and a growing presence in mid-weight motorcycles.
4. TVS Motor Company Ltd: TVS Motor Company Ltd is a top two-wheeler and three-wheeler manufacturer in India. It offers innovative, fuel-efficient vehicles and has expanded its presence in international and electric mobility markets.
5. Varun Beverages Ltd: Varun Beverages Ltd is one of PepsiCo’s largest global bottlers. It produces and distributes beverages like Pepsi, 7UP, and Tropicana across India and several international markets, driving strong volume growth.

• Compounding of Returns: Holding quality businesses over time may allow profits and dividends to be reinvested, thereby gradually building wealth through the compounding effect.
• Reduced Impact of Volatility: Daily market swings often lose significance over the years, as stock performance aligns more closely with the underlying company’s fundamentals.
• Dividend Support: Established companies often reward shareholders with dividends, providing a steady income stream along with price appreciation.
• Link to Economic Growth: Strong businesses tend to mirror India’s expanding economy, benefiting from rising consumption, urbanisation, and sectoral growth.
• Lower Costs: Fewer transactions may reduce brokerage and fees, allowing more capital to stay invested for compounding.

• Company-Specific Issues: Mismanagement, rising debt, or flawed strategies can erode shareholder value over time.
• Economic Cycles: Inflation, recessions, or interest rate changes may weigh down returns, even for fundamentally sound firms.
• Regulatory Shifts: Sudden changes in government policies, taxation, or compliance norms may create hurdles for companies.
• Sectoral Slowdowns: A thriving industry today may lose relevance tomorrow due to technological disruption or changing consumer behaviour.
• Liquidity Challenges: While large-cap stocks trade actively, specific mid and small caps may become difficult to exit in the long run.
• Behavioural Bias: Holding onto weak businesses in the hope of recovery may often lead to long-term underperformance.

• Financial Strength: Revenue growth, profit margins, and manageable debt levels often indicate whether a business can sustain itself over the long term, making it a potential choice among long-term stocks.
• Leadership Quality: Ethical, transparent, and visionary management teams often steer companies successfully through changing times, increasing their chances of being recognised as high-return stocks.
• Industry Prospects: Sectors aligned with India’s economic growth, such as banking, IT, and consumer goods, tend to demonstrate strong long-term potential and frequently include some of the best stocks for sustained holdings.
• Valuations: Buying even a strong company at an inflated price can affect returns; investors frequently rely on metrics like P/E and P/B ratios when selecting stocks with a 5-year CAGR.
• Dividend Record: Companies with a history of paying dividends often reflect financial stability and a shareholder-first approach, making them attractive investments for long-term growth.
• Personal Goals: Matching stock selection with one’s time horizon and risk appetite may help keep expectations realistic, forming the basis of strong long-term stock investment strategies.