Planning invest in Indian Stock Market for long term? You should check our list of 5 Best Stocks To Buy In India For Long Term Profit. These five companies are the best performing stocks of India and experts says that these will be the best for long term profit.
The stock market is the place where you can trade in the shares of public-listed companies. The market provides a platform of an initial public offering where the general public can invest in the shares of various companies and subsequently raise a capital. You can buy or sell a stock that is listed on an exchange. In India, the most important stock exchanges are Bombay Stock Exchange and National Stock Exchange.
The value of stocks keeps changing over a period of time; some of them rise up while some of them get degraded. Everyone wants to invest in a stock that will give the maximum profit for the longest time. If you want to make an investment in the stock market, you must know about the best stocks to buy in India for long term. Let’s find out.
How to spot such stocks?
- The majority of the best stocks are not available on the Internet. It is best if you make your own list of best stocks. For this, focus on the business fundamentals and the technical analysis.
- Do a SWOT analysis of all the stocks on your list. You must consider the strength, weakness, opportunities and threats of that particular stock.
- Take a look at the performance of the stocks over the last 10 years or so before you make the decision of investing in one.
- Consider the market price, average price and the volume of each stock.
- Long term is a relative term when it comes to stock market. If you are looking to make a long-term investment, don’t expect a stock to pay well for 20-25 years. A lot can change over one year itself. So, your best bet is to make an investment that lasts for about 5 years.
5 Best Stocks To Buy In India For Long Term Profit
Sun Pharmaceutical Industries Ltd.
The pharmaceutical industry has seen a major surge in the last few years and one of the best stocks to buy in India for long term in this industry is Sun Pharma. It is the largest pharma company in India which manufactures drugs related to neurology, cardiology, diabetes, etc. With the acquisition of Ranbaxy in the year 2014, Sun Pharma became the fifth largest generic company all around the world with a turnover of $12 billion. Over the last few years, the stock has grown by 260% making it one of the best options for long-term investment.
Supreme Industries Ltd.
Supreme Industries is the largest plastic processor based out of India. The company’s decision of producing technologically-advanced products instead of commodities has played a major role in improving the company’s stocks. Over the past five years or so, the stock has grown up by 19 times with the operating profit margin of around 17%. The company has expanded its production and its distribution over the last few years and this is likely to keep on increasing over the coming years.
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One of the safest options, when you want to choose from among the best stocks to buy in India for long term, is the defensive sectors. Such sectors are not prone to recession or any another factor that may slow it down and one such stock are ITC. With businesses like fast moving consumer goods, packaging etc, ITC has shown a return of 25.5% every year for the past ten years. The stocks are valued reasonably and you can expect to earn a profit of 10 to 15% annually for the next five years at the very least.
Asian Paints is one of the largest Indian companies dealing with paint and varnishes. We have seen a great boom in the real estate industry which has eventually increased the business of such stocks. This stock has given a very good performance in the market and has grown up by 220% over a very short period of time. This stock will grow even more in the upcoming years.
Tata Consultancy Services Ltd.
TCS is one the oldest companies in Information Technology sector that also provides consulting and business solutions. The total revenue of this company stands at $16.5 billion. This stock has performed better than its competitors like Infosys, Wipro over the last few years. This stock offers a return of 811% and is expected to grow at around 15% over the coming years. Hope you liked this list of 5 Best Stocks To Buy In India For Long Term Profit .