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Building Wealth Top Stock Picks for a Financially Secured Future

08 Feb 2024

Introduction:

Making long-term investments in stocks can be a lucrative strategy, particularly in a thriving economy such as India. The power of compounding creates a snowball impact on your wealth and helps you build a formidable corpus to fulfil your financial goals. However, the key to optimising your returns lies in carefully selecting the best stocks with significant profit potential and sustainable revenue growth.

Benjamin Graham, renowned as the father of value investing, characterized investment intelligence as refraining from market timing and instead placing value on 'time in the market.' It involves selecting investment instruments that align with your specific preferences and financial goals and steering clear of making decisions based on hearsay or speculations.

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So, if you are looking to invest in stocks for your long-term future, below are a few options you can consider:

1. Reliance Industries Limited (RIL)

Reliance Industries Limited (RIL), led by business magnate Mukesh Ambani, is a conglomerate with diverse interests in petrochemicals, refining, telecommunications, and retail. It is strategically positioned to capitalise on the burgeoning trends of consumption and digitalization in India. 

RIL has consistently achieved robust revenue growth, propelled by the success of its core operations and strategic expansion into emerging sectors. Furthermore, RIL’s foray into the digital space with Jio has been a game-changer. The company's continuous innovation and strategic investments make it a strong contender for long-term growth.

As of 14 December 2023, RIL’s shares were trading for Rs. 2,464.15 at the National Stock Exchange (NSE) and Rs. 2,464.50 at the Bombay Stock Exchange (BSE) after market closing. 

2. Infosys Limited

As a global leader in consulting, technology, and outsourcing services, Infosys has been a stalwart in the Indian IT sector. It stands to gain from the ongoing digital transformation, advancements in cloud computing, and the rise of cutting-edge technologies such as artificial intelligence and blockchain. Furthermore, the company's focus on innovation and client-centric solutions makes it a reliable long-term bet.

Infosys has exhibited steady revenue growth, propelled by its capacity to provide innovative solutions and adeptly navigate evolving market demands. As of 14 December 2023, Infosys’ shares were trading for Rs. 1,501.45 per share at the NSE and Rs. 1,501.25 at the BSE. The five-year return of the shares stood at 117%.

3. Tata Consultancy Services (TCS)

Tata Consultancy Services (TCS) is a global IT services and consulting company, offering a wide range of services to clients in diverse industries. Similar to Infosys, TCS stands to gain from the growing demand for digital solutions. The company's global presence, strong client relationships, and commitment to innovation make it a solid choice for long-term investors.

TCS has consistently attained robust revenue growth, fueled by its expansive client base, global delivery capabilities, and dedicated focus on innovation. As of 14 December 2023, the shares of Tata Consultancy Services were trading for Rs. 3,667.25 per share at the NSE and Rs. 3,666.60 per share at the BSE. The five-year return of the shares stood at 83.95%.

4. HDFC Bank Limited

HDFC Bank holds the distinction of being India's largest private sector bank, boasting a robust branch network and a keen emphasis on technology-driven banking. India's banking sector is poised for growth, and HDFC Bank, with its strong fundamentals, wide-reaching network, and emphasis on digital banking, is well-positioned to benefit from the evolving financial landscape.

Since its inception, HDFC Bank has sustained noteworthy revenue growth, supported by its robust asset quality and consistent operational performance. The bank's solid brand reputation, customer-centric approach, and prudent risk management practices contribute to its attractiveness as a compelling long-term investment.

As of 14 December, HDFC Bank’s shares were trading for Rs. 1,650.15 per share at the NSE and Rs. 1,649.95 per share at the BSE.

5. Hindustan Unilever Limited (HUL)

Hindustan Unilever Limited is an Indian consumer goods company operating as a subsidiary of the British multinational corporation Unilever. With its headquarters in Mumbai, the company has gained global recognition as one of the leading Fast-Moving Consumer Goods (FMCG) companies. Consequently, its shares are frequently favoured by investors seeking reliable long-term investment options.

As of 14 December 2023, HUL’s shares were trading for Rs. 2,516.35 per share at the NSE and Rs. 2,518.50 per share at the BSE after market closing. 

To conclude

Investing in these stocks for the long term can fetch you compelling returns. But remember, the three keys to achieving success in long-term investing are patience, diversification, and a well-informed investment approach. 

 

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account 

 

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