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Top stocks to invest in India in 2024

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Published Date: 03 Jul 2024Updated Date: 27 Dec 20246 mins readBy MOFSL

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Regular investing in the stock market is one of the most effective ways to create wealth over the long term. India is considered as an attractive market by domestic and foreign institutional and retail investors. That is reflected in the significant surge in their participation, according to the data published by stock exchanges. Here are top 5 best stocks to buy in India in 2024.

What are the top 5 best stocks to buy in India 2024?

Let's take a closer look at the list of the top 5 best stocks you can purchase in India in 2024.

Gujarat Fluorochemicals Ltd

Gujarat Fluorochemicals Limited, commonly known as GFL, is a prominent name in India's fluoro-polymers, chemicals, fluoro-specialties, and refrigerants industries, ranking among the top 5 global fluoropolymer developers. Thanks to a diversified portfolio that includes high-quality polymers like PTFE, PVDF, PFA, PPA, and FKM, GFL seeks to cater to various industries, namely, telecom, automobile, adhesives, wire and cable, and aerospace industries.

Currently boasting a production capacity of 18k TPA, GFL aims to enhance it to 21.6k TPA by the financial year 2025.

This company is all set for significant expansion and success in the near future, supported by its global recognition and commitment towards innovation when it comes to fluoropolymers and specialised chemicals.

Rainbows Children's Medicare Ltd

Rainbows Children's Medicare Limited, also known as RMCL, is certainly the largest paediatric hospital chain in India. It operates 16 hospitals across six different cities with a total bed capacity of 1,715 beds. RMCL achieves a quicker breakeven with significantly lower costs of establishment for spoke hospitals due to the proper utilisation of a cost-effective hub and spoke business model.

This is a strategic approach that not only expands the reach of the company to capture higher volumes of patients from both urban and nearby regions but also optimises expenses. With a bed expansion plan put into place, it is targeting 2,585 beds by the financial year 2027, thereby all set for substantial growth.

Sula Vineyards Ltd

Having been established in 2003, Sula Vineyards Limited has a dominant 52% market share and is the biggest wine producer in India. Its business verticals include the production of wine, its import and distribution, and wine tourism. It operates in 25 different states in India and exports to over 20 countries globally.

Sula Vineyards boasts the largest distribution network in this country, with 13k retail touchpoints and over 23k points of sale. Premiumization is emphasised via a robust D2C channel through wine tourist facilities. The commitment to innovation and quality solidifies the leadership of Sula Vineyards in the Indian wine industry.

Hindustan Unilever Ltd

Hindustan Unilever Limited, also known as HUL, dominates the fast-moving consumer goods industry in India and has three key segments. These are namely, Beauty and Personal Care (42% of revenues), Foods and Refreshments (29% of revenues), and Home Care (29% of revenues).

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When it comes to beauty and personal care, HUL offers a diverse portfolio with more than 900 products across 14 different consumer clusters, thereby earning impressive ~29% margins. Its recent acquisitions include Vwash in 2020 and Indulekha in 2015. The major merger with GlaxoSmithKline Consumer Healthcare Limited in 2020, costing around ₹ 40,200 crores, incorporated popular brands such as Horlicks and Boots into HUL's portfolio.

With a vast footprint, HUL’s brands like Knorr, Vim, Dove, LUX, Ponds, Surf Excel, Kwality Walls, Lipton, and so on, are available in 80 lakh+ stores, reaching 90% of Indian households. This company has 31 manufacturing facilities and embraces modern technologies to ensure channel transformation.

Central Depository Services (India) Ltd

Central Depository Services (India) Limited, also known as CDSL, is a leading infrastructure institution in India's capital market. It plays a crucial role in electronic securities transactions. Operating via three different segments which are namely, Depository, Data Entry and Storage, and Repository, it holds the position of the largest securities depository in India.

CDSL embraces modern technological wonders like blockchain, thereby enhancing transparency in handling securities. The presence of subsidiaries, such as CVL and CCRL, improves its market presence.

With strategic investments of ₹709 crores in various instruments, CDSL aims to be entirely digital, thereby focusing on a unified demat account for every financial asset. Its revenue streams include transaction charges, annual maintenance charges, IPO, KYC services, and corporate actions.

Final Words

You need to create a core portfolio of stocks for wealth creation that you buy and hold for a long time. If you can research company fundamentals on your own, that is the best way forward. However, if you are new to investing, you must put learning before investing. It is a good idea to gather as much knowledge before you take the plunge. Engaging a professional advisor could also help.