Top 5 Stocks for Long-Term Investment
Introduction
Stock market investing can be both thrilling and intimidating, particularly when thinking about long-term investments. By assessing many elements, including the business model, growth potential, and fundamentals of the issuing firm, you may select the finest stocks that will yield the highest returns over the long run.
We have compiled a list of the best stocks for long-term investments in India in 2024 to help you make informed decisions. Every stock's historical performance, growth potential, the fundamentals of the issuing firms, and how well they correspond with current market trends have all been thoroughly examined.
Below are the top five stocks you can consider investing for the long term in 2024:
1) Indian Energy Exchange Ltd
Indian Energy Exchange Ltd., a renowned electrical exchange in India that was founded in 2008, facilitates trade in a variety of electricity products. The business offers an effective and open marketplace for trading electricity through the operation of an automated platform for the actual delivery of electricity.
The average net profit margin over the past five years is 61.01%, while the average return on equity is 46.07%. With a 5-year historical EPS growth of 16.66%, the revenue growth over the past five years has been 13.81%. The estimated EPS growth for the next year is 11.68%. Some people may view it as a possible long-term investment given its strong financial indicators and top ranking on the list.
2) Reliance Industries Limited
Reliance Industries Limited (RIL) continues to be a pillar of the Indian economy with its diverse portfolio that includes energy, petrochemicals, textiles, natural resources, retail, and telecoms. Under the innovative leadership of Mukesh Ambani, RIL keeps innovating and growing, including Jio Platforms, its digital arm. RIL is a desirable long-term investment since it is positioned for consistent development as India moves closer to digitalization.
Reliance Industries shares were selling at the National Stock Exchange (NSE) for Rs. 3,177.25 per share as of July 07, 2024. The market capitalization of the company was Rs. 21,49,733 crores.
3) Divi’s Laboratories Ltd
Divi's Laboratories is a large-cap pharmaceutical firm that was established in 1990. It is involved in the production and distribution of intermediates and active pharmaceutical ingredients (APIs). Carotenoids, Peptide Building Blocks, Intermediates, and Generic APIs are among its goods.
The company has outperformed the industry average in net income, revenue, debt-to-equity, and current ratio over the past five years. On the other hand, the company's free cash flow growth was less than the industry average during that same period. Divi's Laboratories has Rs. 3.26 cr in total debt and an average cash flow margin for the last five years of 23.91%.
4) HDFC Bank
In the banking industry, HDFC Bank is well-known for its consistency, dependability, and customer-focused philosophy. HDFC Bank has continuously produced outstanding financial performance and held its position as the industry leader thanks to its extensive array of banking and financial services that serve to a variety of consumer categories. HDFC Bank is anticipated to gain from rising consumer spending, urbanization, and financial inclusion programs as India's economy expands.
HDFC Bank's shares were trading at Rs. 1,648.10 a share at the BSE and NSE as of July 07, 2024. The market capitalization of the company was Rs. 12,53,894 crores.
5) Tata Consultancy Services Limited
Tata Consultancy Services (TCS), another mainstay in India's IT industry, is renowned for its creativity, excellence, and dependability. TCS, a leader in business solutions, consulting, and IT services globally, has a track record of providing value to its stakeholders and clients. TCS is ideally positioned to take advantage of new trends and propel expansion in the digital era, with an emphasis on automation, cloud services, and digital technology.
TCS shares were trading at Rs. 4,010.00 per share on the NSE and Rs. 4,012.45 per share on the BSE as of July 07, 2024. The stock's one-year trailing return was 20.84%.