Best Stocks for Your Long-Term Investment Plans in 2024
Investing in stocks can be the best decision you make for your financial plans, and if you plan for long-term investments, you should choose wisely. The right stock can yield results, while a poorly chosen one can incur losses. It is always better to avoid such situations by looking at the market to see what stocks are doing well.
But which stock is a good choice for long-term investments in 2024? Let us make it easier for you.
Best stocks for your long-term investments in 2024
Polycab India Ltd
Polycab India Ltd is India's premier manufacturer of cables, wires, and related products, including uPVC conduits, lugs, and glands. The company holds a prominent position in the industry with a significant market share of 22-24% in the domestic organised wiring and cabling sector.
The company is almost debt-free and pays out a dividend of 21.2% with a 21.18% ROE as of March 2023. It shows a high growth expectancy, ensuring your long-term investments yield good returns.
Tata Consultancy Services Ltd
The flagship company of the Tata Group, TCS, is an Indian multinational providing information technology services and consulting, extending its operations to 150 locations spanning 46 countries.
TCS has maintained an ROE of 46.9% and an extraordinary dividend payout of 61.4%. Trusted by the largest businesses around the world for over 50 years, Tata Consultancy Ltd can be your safest long-term investment option.
HCL Technologies Ltd
HCL Technologies Ltd ranks among the top five Indian IT firms by revenue and is named a prominent IT company globally. The company is known for providing various services to solve key industry problems and has spread its presence to 46 countries.
The company is almost debt-free and maintains a dividend payout of 65.5% with an ROE of 23%. With the current growth momentum, HCL promises a good return for your long-term investment plans.
Mphasis Ltd
Ranking 7th among Indian IT companies, Mphasis Ltd is a global IT solutions provider for global enterprises, adopting next-generation design and engineering services to provide scalable and sustainable software solutions. Mphasis specialises in cloud and cognitive services, leveraging cutting-edge technology to help businesses globally.​​​​​​​
The company has consistently given out a high dividend of 72.6% with an ROE of 21.9%. The growth of the company has been promising, which makes it a no-brainer for your long-term investments.
Coromandel International Ltd
Coromandel International Ltd plays a key role in the farming value chain and is a prominent agri-solutions provider in India. Renowned for innovation and manufacturing, it is a trusted brand, excelling in fertilisers, crop protein, biopesticides, speciality nutrients, and organic fertilisers.
Coromandel is also almost debt-free and has an ROE of 28.2% with a dividend payout of 22.4%. The company has also seen significant growth with a 23.6% CAGR over the last 5 years, which adds a great element of diversification to your investment portfolio.
How do you choose a stock with long-term growth potential?
As a long-term investor, you must know which stocks have potential, but it is also important for you to understand what makes a stock worth investing in. So, here is a mini-guide for you.
Check for fundamentals
When you decide to invest in a company, one of the first things you should check is the valuation and earnings of the company, both historical and projected. This offers you insights into a stock's resilience in different economic cycles. You also should look into the return on equity (ROE) and dividend consistency, which are assessed over a range of years and reflect a company's financial stability and predictability. The price-to-earnings ratio, or PE ratio, helps you evaluate if a stock is undervalued or overpriced, especially when compared with industry benchmarks, giving you further insights.
To avoid value traps, consider ratios like the debt-to-equity ratio. High debt can pose risks during economic uncertainty, while a low debt ratio indicates liquidity and the ability to meet debt obligations. These metrics should be non-negotiable while evaluating a stock's true value for your long-term investments.
Study market behaviours
The stock market, although mostly unpredictable, has patterns that you can keep up with and align your investments accordingly. All you need to do is research and study these market behaviours so you don’t miss out on any opportunities.
Stock market news can be beneficial to stay up-to-date and get insights about market conditions. Another way to study market behaviours is to consult the experts since they can guide you best with your investment needs.
Conclusion
Stock investments have risks but can also be a valuable addition to your investment portfolio. If you are looking into long-term investments in 2024, analyse, study, and research well enough before choosing the stock to support your financial dreams. Remember, a simple search can save you from significant losses in the future.