There are also many different reasons out there which are necessary for long term investment but these are some critical ones and the ones which everyone should consider once at least. Long Term Investment stocks can you very rich. They do have the potential. Long Term Investment Stocks can also be thought as Long term Investment plans.
Now after learning what is Long term investing and why long term investment is necessary for everyone you may be thinking,
Which stocks to buy?
So here is our Handpicked Best Stocks you can buy for Long Term Investment,
So here are some of our recommendation:
DISCLAIMER- ALL THE STOCKS BELOW ARE OUR RECOMMENDATIONS ONLY, IF YOU WANT TO INVEST IN THOSE STOCKS PLEASE RESEARCH YOURSELF ALSO.
TOP 10 STOCKS FOR LONG TERM INVESTING:
LARSEN & TOUBRO LTD-
Larsen & Toubro LTD., incorporated in the year 1946, is one of the biggest construction companies out there, company’s interests are in Construction, Basic and heavy engineering, Real estate, Capital, Goods manufacturing, IT, and financial services. It is one of the biggest companies out there. With a dividend yield of 2.55% which means if you had invested 1000 rupees then it was expected to generate a dividend of 25.54 rupees every year. Their Returns For Last 5 Years are 71.37% which is a very attractive number, and since it is a BLUE CHIP COMPANY with a Market Capitalization of 1,98,014 Cr, and one of the Top 10 Construction Companies in India, the Risk in this Larsen & Toubro is very less. Their P/E ratio is 17.19 and their P/B ratio of 2.56.
Over the last 5 years, companies’ revenue has grown at a rate of 9.71 % yearly, with an increase in market share from 38.13% to 49.56%. Over the last 5 years, net income has grown at a yearly rate of 14.91%. Over the 5 years, the Debt to Equity ratio has been 179.36%. With all the factors above this company keeps the potential to grow over a long period, which makes this company one of the ideal companies to invest to get multi beggar returns down the line.
RELIANCE INDUSTRIES LTD-
RELIANCE INDUSTRIES is a Fortune 500 company and the largest private-sector corporation in India founded on 8th May 1973, Maharashtra. Which has evolved from being a polyester and textile company to an integrated player across Energy, Materials, Retail, Entertainment, and digital services and by becoming the 1st Indian retailer to cross $10 billion in revenue. With a market capitalization of 13,00,137 Cr. and one of the biggest companies in India it is a very well safe bet to invest in such companies.
It is one of the BIGGEST BLUE CHIP COMPANY of India. Their major interests are in financial services, construction, entertainment, power, health care, manufacturing, defense, aviation, and transportation services. But mainly reliance industries are in Oil & Gas - Refining & Marketing industry. Their Returns For Last 5 Years are 334.74%. Which a very good return and makes him one of the ideal companies to invest in Their P/E ratio is 26.22 and their P/B ratio of 2.78. Over the last 5 years, companies’ revenue has grown at a rate of 9.72 % yearly, with an increase in market share from 27.25% to 34.99%. Over the last 5 years, net income has grown at a yearly rate of 10.8%%. Over the 5 years, the Debt to Equity ratio has been 80%. With all the factors above this became one of the companies to think about for a long-term investment purpose. Reliance Industries has always been one of the finest companies in India which have always shown its potential
3) PIDILITE INDUSTRIES LTD.
PIDILITE is the No.1 adhesive manufacturing company in India since 1959 which was started with our legendary adhesive products popularly known as Fevicol, Fevikwik, Fevistick. From adhesives, sealants, waterproofing solutions, and construction chemicals to arts & crafts, industrial resins, polymers, and more, their product portfolio is as diverse as it is ever-evolving. You must have listened to Some of the names like M seal or DR. Fixit which are also their products which are not only market leaders but also have become synonyms with the product category means people now don’t say that gives me adhesive or something like that they say give me Fevicol, give me Fevikwik, give me Fevistick, give me M seal, give me DR. Fixit or something like that. It can only be achieved with great dominance in the market and with heavy marketing.
Their Returns For Last 5 Years are 203.77% which is itself a very impressive number their Market Capitalization is 98,381Cr. Their P/E ratio is 88.26 and their P/B ratio of 21.52. Over the last 5 years, companies’ revenue has grown at a rate of 8.78% yearly, with an increase in market share from 9.85% to11.57%. Over the last 5 years, net income has grown at a yearly rate of 16.85%. Over the 5 years, the Debt to Equity ratio has been 3.5%. Looking at future growth perspective we know that the construction sector is going to boom in the next few years because India is going to be the next big economy in the world after the US and China in some years which means that people will spend more on a luxurious thing or furniture products which require adhesive and Pidilite is the leading company in this market with almost no competition which gives us the investors a big thumbs up to invest it for a long term.
4) TITAN COMPANY LTD.
Titan Company LTD. was established in 1984 and was mainly focused on the Indian lifestyle by manufacturing fashion accessories in the Indian market such as watches, jewelry and eyewear. Titan company LTD. is a part of the tata group started as a joint venture with TIDCO. Some of the popular brands of Titan includes Fastrack, Titan watches, and sonata in watches they are also in jewelry their famous brand in the jewelry category is Tanishq which is heavily popular in the Indian market with titan eye plus in the eyewear category a leading one and Skinn in perfume category. Titan Company is a leading company in all of their categories with a Market Capitalization of 1,35,951 Cr.
Their Returns For Last 5 Years are 324.26% which is a really good figure. Their P/E ratio is 140.36 and their P/B ratio of 20.47. Over the last 5 years, companies’ revenue has grown at a rate of12.09% yearly, with a Decrease in market share from11.37% to 8.64%. Over the last 5 years, net income has grown at a yearly rate of12.96%. Over the 5 years, the Debt to Equity ratio has been 34.67%. Looking at the future growth perspective titan is planning to grow its market share which has been decreased. They are also planning to enter five new global companies which is pretty good .They are also trying to target the NRI’s and the American audience as well, they are testing the US market for the same. In the domestic region, they are trying to expand their portfolio of licensed brands and accessories. This is very good and that all can be a reason to think to invest in Titan for the long run.
5) ASIAN PAINTS LTD.
Asian Paint LTD. is a paint related company started in 1942, and was set as a partnership firm by four friends and since then it became one of the finest paint-related company in the market and became the market leader over 25 years in paints in 1967, and today Asian paint has become one of the biggest market leaders by gaining a Market capitalization of 268009 Cr. Asian paints LTD. is engaged in the business of manufacturing, selling and distribution of paints, coasting, products related to home decor, bath fitting, and providing related services.
Their Returns For Last 5 Years are 200% approx. which is an eye-catching figure to see. Their P/E ratio is 86.54 and their P/B ratio of 25.79. Over the last 5 years, companies’ revenue has grown at a rate of 6.18% yearly, with a decrease in market share from 64.64% to 62.18%. Over the last 5 years, net income has grown at a yearly rate of 14.16%. Over the 5 years, the Debt to Equity ratio has been 8.37%. By looking at their growth perspective, due to increase in per capita income, the spending has been increased on luxuries and in home decor, which brings a rise in demand for Asian paints as a market leader, and also governments’ push for more housing schemes like ‘PRADHAN MANTRI AWAS YOJNA’ makes this company’s growth potential high in, the long term race.
6) HDFC BANK LTD.
Banking sectors are one of the evergreen sectors in India because to say for almost anything a person has to purchase, say it for mobile, to a house he is always willing to take a loan on that. To purchase a car or for further education or for any kind of personal affairs a person is most likely to take a loan for that. Not only Individuals but many invitations also have to take out a loan from time to time for their future goals or anything, But banking sector plays a major role in our economy. This brings us to our 6th stock HDFC Bank LTD. which is one of the famous and one of the most trusted banks out there in India. HDFC Banks offers a variety of financial products and banking services to their customers, they also provide a large amount of commercial and transactional banking services to businesses and organizations. HDFC Bank is one of the leading banks in India with almost a Market capitalization of 7,90,212 Cr.
Their Returns For Last 5 Years are165% approx. which is an eye-catching figure to see. Their P/E ratio is 25.86 and their P/B ratio of 4.64. Over the last 5 years, companies’ revenue has grown at a rate of 19.55% yearly, with an increase in market share from 20.88% to 24.06%. Over the last 5 years, net income has grown at a yearly rate of 20.59%, for looking at their prospect, they are trying to focus on branch expansion, especially in semi-urban areas, and trying for digital banking services in urban areas, and overall they also have a good amount of reserves for them which is quite good their annual report is also quite good. Overall HDFC Bank LTD. is a good company to think for.
7) Hindustan Unilever LTD.
Hindustan Unilever LTD. is one of the biggest companies in the FMCG sector - Household sector, so big that they have over 400 brand names in over 190 countries in which around 2.5 BILLION people are using their product every day, and there is a very high probability that you too are using one of their products, You may be heard of AXE, BOOST, DOVE, HORLICKS, KNORR, LIFEBUOY, LIPTON, LUX, PEPSODENT, MAGNUM, SUNSILK, POND’S, VASELINE, SUNSILK, CLOSEUP, PURE IT, PEARS, LAKME and there is a huge list going on and on and you must have used at least any one of them, they are such a big company that their Market capitalization is around 5,50,778 Cr.!
Their Returns For Last 5 Years are 188% approx. which is an eye-catching figure to see. Their P/E ratio is 69.42 and their P/B ratio of 62.01. Over the last 5 years, companies’ revenue has grown at a rate of 4.03% yearly, with an increase in market share from 95.21% to 95.46%. Over the last 5 years, net income has grown at a yearly rate of 9.11%. looking at their prospect, they are trying to focus on growth, because of the pandemic their products like Lifebuoy was heavily bought and is expected to increase in sales in around double digits, and due to panic buying their other products have also been heavily consumed. Which is expected to grow their revenue also, and overall that makes this company a good company to think about investing in for a long time.
8) TATA CONSULTANCY SERVICES LTD.
TATA CONSULTANCY SERVICES LTD.is one of the biggest multinational information technology (IT) companies in India which is a part of the TATA group, with a Market Capitalization of 11,31,909 Cr!! Which is a very high figure. It was founded in 1968 and since then it has become one of the biggest IT giants in India. They operate on a global scale across 46 countries all over the globe, with one of the largest employers as women with 36.5 % as women employees.
Their Returns For Last 5 Years are 152% approx. which is an achievement. Their P/E ratio is 35.39 and their P/B ratio of 13.08. Over the last 5 years, companies’ revenue has grown at a rate of 10.43% yearly, with an increase in market share from 30.87% to 31.99%. Over the last 5 years, net income has grown at a yearly rate of 10.25%. Over the 5 years, the Debt to Equity ratio has been 2.14%. Looking at their prospect, we all know that our future is Digital, and as being one of the top players in the industry in the digital sector the TCS will play a key role in the future of Digital India.
9) MARUTI SUZUKI LTD.
Maruti Suzuki LTD. is one of the largest manufacturers of automobiles in India, which itself is a 56.21% owned subsidiary of Japanese automobile manufacturers Suzuki Motor Corporation. The company is well known for manufacturing and selling passenger vehicles. Started with our only Maruti 800, and since then they became a very well-known company in the industry with a Market Capitalization of 2,03,537 Cr.
Their Returns For Last 5 Years are 75% approx. which is an achievement. Their P/E ratio is 46.90 and their P/B ratio of 4.16, Over the last 5 years, companies’ revenue has grown at a rate of 8.89% yearly, with an increase in market share from 13.23 to 17.83%. Over the 5 years, the Debt to Equity ratio has been 0.61%. Looking through their future perspective, we all know that in our future our economy is going to rise, and in a rising economy, people are tend to spend more on their luxurious life and tend more to purchase any automobile for their comfortable life, hence Maruti Suzuki here plays a vital role by being one of the leading company in this sector.
10) Infosys LTD
Infosys LTD was established in 1981 and has grown from a capital of $250 to $13.56 BILLION, which is a massive figure to see. Infosys is an IT service company with more than 200K employees. and Infosys was the first company in India in the IT sector to be listed on NASDAQ. It is one of the biggest multinational information technology (IT) companies in India with almost a Market capitalization of 5,68,615 Cr.
Their Returns For Last 5 Years are 131% approx. which is an achievement. Their P/E ratio is 29.70 and their P/B ratio of 7.49, Over the last 5 years, companies’ revenue has grown at a rate of 10.52% yearly, with an increase in market share from 17.81% to 18.54%. Over the 5 years, the Debt to Equity ratio has been 1.41%. For future growth, we can say that we all know that our future is Digital, and as being one of the leaders in the industry in the IT sector, Infosys can do a great job in the future of Digital India.
CONCLUSION-
In short, if you want to invest in any company, always think from a long-term perspective, because the longer the game will run the longer the compounding will do its effect. But to put your money anywhere you must research yourself.
Also the above stocks that are mentioned are for informational knowledge only, if you are thinking to put your money in any of them please make sure that you are also doing your fundamental analysis. Because in any case if you encounter loss you will lose your money But by researching a bit more you can make a lot of money.
Written By, Harsh Kumar. Harsh Kumar is an aspiring Content Writer and Enthusiast Blogger. He has a vast Knowledge about Stock Market, Mutual Funds and other Financials. He aims to spread his knowledge and make everyone financially literate. You may Follow Harsh Here, https://www.instagram.com/_harshkumar24_/
Tags: Long term investment stocks, stocks for long term investment, long term investment, long term investment in shares, long term investment plans
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