Best Long-Term Stocks 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 explore today in India for long term investment and strategies for identifying them them to achieve your financial goals.
Top 10 Stocks in India for Long Term (2024)
Let’s look at 10 best shares for long term from the NIFTY 100 based on their 5Y average net profit margin:
| symbol | Company | ticker | slug | Sector | Market Price | 52W High | 52W Low | Market Cap (Cr.) | PE Ratio | Industry PE | PB Ratio | Div. Yield (%) | ROE (%) | 1YReturns | 3YReturns | 5YReturns | Market Cap Label | Industry Group | Industry | Sub Industry | percentageChange |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ADAG | Adani Total Gas Ltd | ATGL | /stocks/adani-gas-ADAG | Gas Distribution | 670.95 | 1,190.00 | 545.75 | 73,862.00 | 110.65 | 21.91 | 20.63 | 0.04 | 20.47 | -32.57 | -62.09 | 332.87 | Midcap | Utilities | Gas Utilities | Gas Utilities | 0.16 |
| ADAN | Adani Power Ltd | ADANIPOWER | /stocks/adani-power-ADAN | Power Generation | 496.00 | 895.85 | 432.00 | 191,486.27 | 9.19 | 21.91 | 4.42 | 0.00 | 56.77 | -3.07 | 398.74 | 725.98 | Largecap | Utilities | Independent Power and Renewable Electricity Producers | Independent Power Producers & Energy Traders | 2.25 |
| APSE | Adani Ports and Special Economic Zone Ltd | ADANIPORTS | /stocks/adani-ports-and-special-economic-zone-APSE | Ports | 1,182.20 | 1,621.40 | 995.65 | 255,614.71 | 31.52 | 49.02 | 4.67 | 0.51 | 15.95 | 14.92 | 63.47 | 225.09 | Largecap | Transportation | Transportation Infrastructure | Marine Ports & Services | 5.22 |
| BAJA | Bajaj Auto Limited | BAJAJ-AUTO | /stocks/bajaj-auto-BAJA | Two Wheelers | 8,778.05 | 12,774.00 | 6,370.05 | 245,367.06 | 31.83 | 38.53 | 8.47 | 0.91 | 26.43 | 35.79 | 178.31 | 171.76 | Largecap | Automobiles & Components | Automobiles | Motorcycle Manufacturers | 1.14 |
| BAJE | Bharat Electronics Ltd | BEL | /stocks/bharat-electronics-BAJE | Electronic Equipments | 292.45 | 340.50 | 171.75 | 213,977.97 | 53.70 | 36.03 | 13.09 | 0.75 | 26.37 | 60.73 | 323.84 | 787.56 | Largecap | Capital Goods | Electronic Equipment, Instruments & Components | Aerospace & Defense | 0.94 |
| CADI | Zydus Lifesciences Ltd | ZYDUSLIFE | /stocks/cadila-healthcare-CADI | Pharmaceuticals | 964.80 | 1,324.30 | 666.75 | 97,173.86 | 25.18 | 51.73 | 4.40 | 0.31 | 18.47 | 42.68 | 110.54 | 275.19 | Largecap | Pharmaceuticals, Biotechnology & Life Sciences | Pharmaceuticals | Pharmaceuticals | -0.74 |
| HCLT | HCL Technologies Ltd | HCLTECH | /stocks/hcl-technologies-HCLT | IT Services & Consulting | 1,896.95 | 1,980.00 | 1,235.00 | 513,339.95 | 32.69 | 36.03 | 7.52 | 2.75 | 23.49 | 30.09 | 49.70 | 238.44 | Largecap | Software & Services | Software | IT Consulting & Other Services | 0.20 |
| HLL | Hindustan Unilever Ltd | HINDUNILVR | /stocks/hindustan-unilever-HLL | FMCG - Household Products | 2,335.55 | 3,035.00 | 2,172.05 | 549,281.14 | 53.45 | 50.95 | 10.68 | 1.80 | 20.16 | -9.64 | 1.48 | 20.08 | Largecap | Household & Personal Products | Household Products | Personal Care Products | -0.12 |
| ICBK | ICICI Bank Ltd | ICICIBANK | /stocks/icici-bank-ICBK | Private Banks | 1,297.25 | 1,362.35 | 970.15 | 915,714.75 | 20.69 | 17.61 | 3.39 | 0.77 | 18.02 | 30.36 | 76.26 | 140.79 | Largecap | Banks | Banks | Diversified Banks | 0.01 |
| KTKM | Kotak Mahindra Bank Ltd | KOTAKBANK | /stocks/kotak-mahindra-bank-KTKM | Private Banks | 1,749.05 | 1,942.00 | 1,543.85 | 348,072.52 | 19.11 | 17.61 | 2.68 | 0.11 | 15.03 | -7.30 | -1.38 | 3.23 | Largecap | Banks | Banks | Diversified Banks | 0.21 |
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 table above is dynamic and subject to real-time changes. The list is derived from Tickertape Stock Screener on 25th November 2024. The stocks have been chosen based on the following parameters:
- 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
Here are brief overviews of the top 10 shares for long term listed above:
Adani Ports and Special Economic Zone Ltd
Founded in 1998, Adani Ports and Special Economic Zone Ltd is the largest commercial port operator in India and part of the diversified Adani Group. The company manages a network of ports and logistics infrastructure, facilitating trade across India and globally. It is a crucial player in India’s port-led development strategy. As of 25th November, Adani Ports and Special Economic Zone Ltd has a market capitalisation of Rs. 2,45,553.79 cr.
Kotak Mahindra Bank Ltd
Kotak Mahindra Bank Ltd, established in 1985 by Uday Kotak, is one of India’s leading private sector banks. It offers a wide array of financial products and services, including retail banking, investment banking, and wealth management. The bank is renowned for its innovation and customer-centric approach. The market capitalisation of Kotak Mahindra Bank Ltd stands at Rs. 3,50,205.17 cr.
Adani Total Gas Ltd
Adani Total Gas Ltd, incorporated in 2005, focuses on the distribution of natural gas to industrial, commercial, and residential consumers. It operates city gas distribution networks and is a joint venture between the Adani Group and TotalEnergies of France. The market capitalisation of Adani Total Gas Ltd is Rs. 66,989.43 cr.
Hindustan Unilever Ltd
Hindustan Unilever Ltd (HUL) is a prominent FMCG company in India, established in 1933. It is a subsidiary of Unilever, the global consumer goods giant. HUL’s portfolio includes popular household brands in categories such as personal care, home care, and food products. The market capitalisation of Hindustan Unilever Ltd is Rs. 5,74,533.80 cr.
Bajaj Auto Limited
Bajaj Auto Limited, founded in 1945, is a leading manufacturer of two- and three-wheelers in India. It is well-known for its range of motorcycles, scooters, and commercial vehicles, with a strong focus on innovation and exports. The market capitalisation of Bajaj Auto Limited is Rs. 2,64,782.29 cr.
Bharat Electronics Ltd
Bharat Electronics Ltd, established in 1954 under the Ministry of Defence, is a leading aerospace and defence electronics company. It specialises in designing and manufacturing advanced electronic equipment for the Indian armed forces and other sectors. Bharat Electronics Ltd has a market capitalisation of Rs. 2,05,295.14 cr.
Zydus Lifesciences Ltd
Zydus Lifesciences Ltd, formerly known as Cadila Healthcare, was founded in 1952. It is one of India’s largest pharmaceutical companies, offering a range of generic drugs, vaccines, and active pharmaceutical ingredients (APIs). The company’s market capitalisation stands at Rs. 95,496.64 cr.
HCL Technologies Ltd
HCL Technologies Ltd, established in 1976, is a global IT services and consulting company. It provides a wide range of technology solutions, including software development, cloud services, and IT infrastructure management, catering to clients worldwide. With a market capitalisation of Rs. 5,13,732.34 cr., HCL Technologies Ltd is a major player in the global IT services industry.
Adani Power Ltd
Incorporated in 1996, Adani Power Ltd is part of the Adani Group and is one of India’s largest private thermal power producers. The company operates power plants across multiple states, contributing significantly to the nation’s energy needs. The market capitalisation of Adani Power Ltd is Rs. 1,77,592.75 cr.
ICICI Bank Ltd
ICICI Bank Ltd, founded in 1994, is one of India’s leading private-sector banks. It provides a broad spectrum of banking and financial services, including retail banking, corporate banking, and asset management. The bank is known for its technological innovation and robust financial services portfolio. ICICI Bank Ltd has a market capitalisation of Rs. 9,01,776.87 cr.
Investing in Long Term Investment Stocks via smallcase
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However, if you’re confused about which stocks to pick, you can explore smallcases:
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Disclosures for aforementioned smallcases
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 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 India 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 Explore Long Term Stocks in India?
Investing in the best stocks for long term can yield substantial benefits. These top long term stocks not only provide the potential for significant returns over time but also enable investors to capitalise on India’s expanding economy. By focusing on long term stocks, especially across diverse industries and top stocks in India, you can mitigate the impact of short-term market fluctuations. Additionally, investing in some best long-term investments might allow you to benefit from regular monthly dividends.
Choosing the best stock for long term investment aligns your portfolio with India’s growth trajectory, driven by a growing middle class and increasing consumer spending. As a result, shares for long term investment offer the potential for steady returns. Analysts frequently provide valuable insights and stock market suggestions, guiding investors to identify the best long term investments. Staying informed about these insights is essential when deciding on the best stocks for long term.
How Do You Identify Long-Term Stocks in India?
When exploring stocks to for long term, it is vital to assess several factors. Here are some key criteria for determining the best stocks to buy for long term:
Company Financials
Identify the best stocks in 2024 India by focusing on companies with robust financials. A healthy balance sheet, positive cash flow, and strong earnings growth are critical factors. Such companies often feature on lists of the top 10 stocks for long term and represent the best long term stocks India.
Management Team
A competent management team is vital for any long term share. Companies with strong leadership often rank among the best company for long term investment and are favoured as long term shares.
Competitive Advantage
Look for stocks for long term India that possess a distinct competitive edge. Whether it’s a strong brand, innovative product, or proprietary technology, these are hallmarks of the best stocks for long term.
Market Trends
Keeping an eye on market trends is crucial for identifying the top stocks in India. Whether investing in renewable energy or e-commerce, the best stocks are those well-positioned for future growth. Following expert stock market suggestions can help you curate a portfolio of long term stocks in India.
Risks of Investing in Long Term Investment Stocks in India
Investing in long term investment stocks India can lead to substantial rewards, but certain risks exist:
- Volatility: Even the best long term share can experience price fluctuations.
- Lack of Liquidity: The best share for long term investment may not be easily liquidated in the short term.
- Company-Specific Risks: Even the best stock for long term investment is susceptible to challenges like poor management or legal issues.
Advantages of Long Term Investment Stocks
Investing in the best stocks for long term in India provides numerous benefits:
Potential for Higher Returns
The best stocks in 2024 historically outperform other asset classes like bonds and real estate.
Time in the Market, Not Timing the Market
When exploring stocks in India for long term, focus on staying invested rather than timing the market. This principle holds for stocks for long term.
Lower Taxes
Holding onto the best portfolio stocks for long term for over a year results in reduced tax rates, making them appealing for long-term investors.
Compounding
By investing in long term stocks for 2024 in India, you can harness the power of compounding. The more time you allow for your long time investment share to grow, the greater the potential returns.
Important Rules for Long Term Investing
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 bears the features of 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 share 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 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 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 for long term success.
Diversify Your Portfolio
While there are several good shares 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 the best stock for long term 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 the best long-term 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 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 for long term investment 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 investments, including the best stocks for long term growth, 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 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 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
Long term trading is important because it allows for compounding growth, reduces the impact of short-term market volatility, lowers transaction costs and taxes, and aligns with long-term financial goals. It also promotes disciplined decision-making, helping investors steadily build wealth over time.
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.
Regular assessments can help ensure that your long term investment portfolio stays aligned with long-term goals, without making impulsive decisions based on short-term market changes.
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. 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 in India for the long term are often seen as high-quality, blue-chip stocks. Investing in stocks does involve risks. When choosing stocks for the long term in 2024, it’s important to assess risks based on your financial goals and investment timeline.
To monitor your investments regularly, track your portfolio value, review financial statements, analyse key metrics like EPS and P/E ratios, use investment tracking tools, stay informed on market trends, and periodically rebalance your portfolio to align with your goals. You can use the Tickertape Stocks Screener to conduct this exercise.
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