One of the most successful stock market investors in the world – Warren Buffet – often says, “Investing is not about timing the market but the time spent in the market”. Investing for five years or more allows you to ride through the market volatility and reap the benefits of compounded growth. However, the key is to choose the right stocks with strong fundamentals.
Founded in 1907, Tata Steel has evolved into one of the leading steel manufacturing companies in the world. It is Asia’s first integrated private steel company with a total crude steel manufacturing capacity of 34 Metric Tonnes Per Annum (MTPA).
A healthy Compound Annual Growth Rate (CAGR) of 10% in the last decade makes Tata Steel shares one of the best stocks in India for long-term investment. The year-on-year (YoY) growth percentage of the company for the Financial Year 2021-22 stood at 55.9% in terms of revenues.
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Infosys is one of the largest Information Technology (IT) service providers in the world. It has clients in more than 50 countries and provides modern tech-based solutions like Artificial Intelligence (AI), Machine Learning (ML), cloud computing, blockchain, and the Internet of Things (IoT).
For the Financial Year 2021-22, Infosys reported a turnover of Rs. 1,22 lakh crore. The average return on equity (ROE) on its shares has rambled around 25% for a decade, making it a pretty decent stock for long-term investment in India.
ICICI Bank is one of the largest private-sector banks in India. It offers an array of financial products and services to retail and corporate customers. The current market capitalization of the company is Rs. 5.96 lakh crore.
Most stock market analysts have given a bullish rating to ICICI Bank shares with the ROE being 14.8%. The capital reserves of the company have grown from Rs. 67,604 in March 2013 to Rs. 1,21,662 in March 2020, reflecting its strong progress.
Tata Consultancy Services is the second Tata Group stock in this list of best stocks for long-term investment in India. Like Infosys, TCS also offers IT solutions and consultation services to some of the large business houses across the world. It also operates in the banking and financial services sector.
As on 29th May 2023, the market capitalisation of the company stood at Rs. 11.46 lakh crore. Its shares have given an average ROE of 43.6%, and the operating profits of the company have remained steady between Rs. 10,225 crore and Rs. 12,663 crore from September 2019 to June 2021.
Bajaj Finance is a subsidiary of Bajaj Finserv, one of the leading Non-Banking Financial Companies (NBFCs) in India. This company was formed to oversee the lending business of its parent company. Its product portfolio includes personal loans, business loans, home loans, and credit cards, among others.
As of 29th May 2023, Bajaj Finance’s market capitalisation and price-to-earnings (PE) ratio stood at Rs 4.22 crore and 48.9 crore, respectively. Its stocks have given an average ROE of 17.5% since its inception.
Balkrishna Industries is a leading player in the off-highway tire market in India. This company was established in 1987 and has made significant progress since then. Currently, it operates in more than 160 countries and boasts some premier clients across the globe.
The reported revenue of the company in the Financial Year 2021-22 stood at Rs. 8700 crore (approximately). The profit margin of the company has grown at a CAGR of 18% in the last 10 years. Balkrishna Industries’ shares have maintained an ROE of 15.4%.
Hindustan Unilever is a force to reckon with in India’s Fast Moving Consumer Goods (FMCG) space. It boasts some well-known household brands, including Lux, Lifebuoy, Surf Excel, Vaseline, Pond’s, Lakme, Dove, Sunsilk, Close Up, Brooke Bond, Kissan, and Horlicks, among several others.
The company was founded in 1933 and has witnessed strong growth since then. As on 29th May 2023, Hindustan Lever’s market capitalization stood at Rs. 6.23 lakh crore with a strong P/E ratio of 61.58. The company’s shares have given an ROE of 20.37%.
Our list of best stocks in India for long-term investment comprises some well-known companies across business verticals. You can invest in these shares to build considerable wealth for your future life goals. But before investing your hard-earned money, assess a company’s fundamentals and historical track record.
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