Best Shares To Buy In India For Long Term: Which Can Deliver Incredible Return To Investors

Best Shares To Buy In India For Long Term
Best Shares To Buy In India For Long Term

Do you know that why successful investor like Warren Buffet, Peter Lynch, Benjamin Graham Who is the father of value investing always focused on Long Term Investment?

The answer is they knew that the power of compounding & patience.

They knew that if they invest their money for the longer horizon they would get more benefit of the power of compounding in the longer horizon.

As Einstein said “compound interest is the eighth wonder of the world. He who understands it earns it and he who doesn’t pay it

In this article, I’ll show you the Best Shares To Buy In India For Long Term. So that you get an idea of which shares you should invest in for the long term.

Disclaimer: Investment in the stock market is subject to market risk, don’t consider it to be a piece of advice, this is just for an educational purpose only

Top Best Shares To Buy In India For Long Term

TCS Ltd

Tata Consultancy Service Ltd is the market leader in the IT industry in India & is one of the biggest IT companies in the world with a market cap of ₹12 Lakh crore.

Let’s take a look at the company’s Financial

 5 Year Sales Growth 12%
5 Year Profit Growth 12%
5 Year ROE 38%
5 Year Stock Price CAGR 20%

 

We all know that the future is Digital & everyone has come online especially after corona & the Indian Govt is also focussing on the digitalization of India and TCS is going to play a crucial role in digitalization.

TCS has a huge client base who are highly satisfied with the service of the company also it is an expert in the field of software development.

HDFC Bank Ltd

HDFC bank is one of the biggest banks in India also it’s one of the biggest Pvt banks in India with a market cap of ₹8.2 Lakh crore. HDFC bank is the fastest growing bank in India

Financial Of HDFC Bank

 5 Year Sales Growth 19%
5 Year Profit Growth 21%
5 Year ROE 18%
5 Year Stock Price CAGR 23%

 

If we talk about the NPA of hdfc bank then the gross NPA of hdfc Bank is 1.26 & net NPA is 0.36 which is very low & low NPA is a good sign for any bank.

The economy of any country depends upon the bank for finances. And HDFC playing a crucial role in the banking sector.

let me tell you that today HDFC bank has a banking network of 5,485 branches & 14,533 ATMs across 2866 cities and towns.

The bank intends to expand into rural and semi-urban areas with small branches and HDFC bank is also focusing on digital banking.

Because the future is digital and you can see how today we can transfer money without going to the bank through digital payment.

We never thought this would happen but it is happening & to survive in this digital world we will have to adopt new technology otherwise we will be left behind.

Asian Paints Ltd

Asian paint is the market leader in the paint industry with a market cap of ₹ 2.3 lakh crore. Asian paint manufactures a wide range of paints for decorative and industrial use.

The company also present in the home improvement & decor segment. Currently, Asian paints operate in 15 countries and has 26 manufacturing facilities in the world.

Financial of Asian Paint

 5 Year Sales Growth 8%
5 Year Profit Growth 14%
5 Year ROE 27%
5 Year Stock Price CAGR 23%

 

Company is almost debt-free. It has a dense distribution network with 140 depots covering 65,000 to 70,000 shopkeepers all over the country.

The best thing about Asian paint is It collects ten times more data than its competitors, which is helping it to better forecast demand and improve service levels across the country, and helping dealers clear their inventory within a few hours.

Asian paint is not only a paint company but Asian paint is an emotion for Indians because of its marketing strategy…

they used a tagline to make an emotional connection with their consumer “Har Ghar Kucch Kehta Hai”.

Bharti Airtel Ltd

Bharti Airtel is the second-largest mobile network operator in India with a market cap of ₹2.8 lakh crore. currently, Bharti Airtel operates in 18 countries.

Financial Of Bharti Airtel

 5 Year Sales Growth -2%
5 Year Profit Growth 11%
5 Year ROE 6%
5 Year Stock Price CAGR 10%

 

For the past few months, Bharti Airtel has added 6 times more subscribers than JIO. According to data released by the Telecom Regulatory Authority Of India (TRAI)…

Airtel added nearly a 25million subscribers between August 2020 to January 2021 & Jio added only 10 million subscribers.

The total subscriber of Bharti Airtel has 344.6million which is the second-highest after JIO.

But if we talk about the most active users, then JIO is lagging behind Airtel.

HDFC Life Insurance Company Ltd

HDFC bank is a long-term life insurance provider with a market cap of ₹ 1.3 lakh crore. financial literacy of India is increasing day by day after covid people have realized that Life insurance is compulsory.

Financial Of HDFC Life

 3 Year Sales Growth -1%
3 Year Profit Growth 11%
3 Year ROE 22%
3 Year Stock Price CAGR 17%

 

HDFC Life is one of the fastest-growing Pvt companies in the Life Insurance Space. In 2017 HDFC Life had launched a successful IPO. According to analyst penetration of Life Insurance in India is deeply under-penetrated.

But its benefits will be seen in the long term because the increase in the economy per capita income of the middle class will also increase. Along with it, people will be more financially aware.

And because of that demand for Life insurance gonna increase and it will directly benefit life insurance companies like HDFC who is the biggest player in this field.

ITC Ltd 

ITC Ltd is an Indian multinational conglomerate company ITC has diversified in other businesses such as Cigarettes, Hotel, FMCG, Agriculture & paperboard. It has a market cap of ₹ 2.7 lakh crore.

Financial Of ITC

 5 Year Sales Growth 5%
5 Year Profit Growth 10%
5 Year ROE 24%
5 Year Stock Price CAGR 1%

 

ITC operates in many different sectors but the major portion of its profit comes from its cigarette business. ITC has a strong supply chain across the country.

ITC now focussing more on its FMCG sector because of the govt strict rule for the consumption of tobacco. There is a surge in the share price of ITC after the demerger of ITC Tobacco, ITC FMCG & ITC Hotel.

Although ITC has not acknowledged this news, if this happens it’ll be beneficial for both company and its investor. You can add ITC to your watchlist.

Bajaj Finance Ltd 

Bajaj Finance Ltd is one of the leading NBFC company in India with a market cap of ₹3.2 lakh Crore. It considered as most diversified NBFC ever.

Products this company offer in consumer finance are Durable Finance, Lifestyle Finance, Digital Finance, EMI Card, Gold Loan, Home Loan, etc.

A company offers most of the products used under consumer finance.

Financial Of Bajaj Finance 

 5 Year Sales Growth 37%
5 Year Profit Growth 42%
5 Year ROE 21%
5 Year Stock Price CAGR 51%

 

Whenever it is talked about on NBFC their NPAs & Credit rating is the most important, If we talk about the Bajaj Finance NPA its Gross NPA is 0.55% & gross NPA is 0.19%.

After comparing numbers to its peer their number is very attractive. If we speak about the CRISIL long-term rating, it has given a rating of AAA on long-term debt instruments.

Bajaj Finance shares can be one of the best profitable shares to buy today for the long term.

Hindustan Unilever Ltd

HUL is the biggest FMCG company in India with a market cap of ₹5.5 lakh crore. It is a subsidiary of Unilever which is a British company.

It operates in the beauty & personal care, food& refreshment, homecare segment.

Financial Of HUL

 5 Year Sales Growth 4%
5 Year Profit Growth 13%
5 Year ROE 78%
5 Year Stock Price CAGR 21%

 

If we talk about the company’s core product, it includes some well-known brands like LUX, Dove, Surf Excel, Lifebuoy, Clinic Plus, Sunsilk, Fair & Lovely, vaseline, etc.

HUL claims that 9 out of every 10 households in India use one or more products of HUL. HUL has the strongest distribution network with 4500 distributors in India.

Company is focussing on grabbing the opportunity in rural India as the opportunity in the rural market is higher than in the urban market.

Also Read: How To Invest In The Stock Market In India For Beginners [The Complete Guide]

How To Choose The Best Profitable Shares To Buy Today

1. Find the story behind the company, Always check what are the future goals of a company, Understand the business of that company in which you are willing to invest, what does the company wants to do in the future.

If you know the company then you’ll able to guess the right decision to buy the shares of the company. Because you know what are the future plans of the company.

2. Before buying any stock remember this point if you get the chance to do that business would you like to do that? If your answer is yes then you can invest your money in that company shares.

See, You are not buying the company today because of its current condition, you are buying it because of its future goals.

What you need to check is what the company is doing differently from its competitor.

If the company is not making a profit today don’t worry but if you know the company will do well in the future then the financial statement doesn’t matter much.

So, understand what is the story behind the company, Financial statement is not able to show the exact value of the company. it matters what value the company is providing to its consumer.

3. Before Invest your money in the market make sure what is your investment plan, Ask yourself why are you investing in the stock market?

Make your goal clear you should have clarity in your mind why am I investing money in a particular stock? Do you really know what do you want?

4. There is no guarantee of return in the stock market, so invest the only amount that you are willing to lose. Investing your all money in the market can make you in financial trouble.

Investing in the stock market is not rocket science but it’s not easy either, Stock market can panic you with high volatility.

So, understand what is your risk appetite. If you take too much risk, you may panic and sell at the wrong time.

Point to Remember Before Buying Indian Stocks For Next 10 Years  

1. If you are looking to buy shares for the long term then you can consider the stock which I have mentioned above. But don’t buy these stocks blindly.

Before buying any stocks don’t forget to do a fundamental analysis of company like reading company financial statement, Complete analysis of financial ratio, company management, company intrinsic value, future growth of the company.

2. Before buying stock always check some ratios like P/E ratio, P/B ratio, PEG Ratio, etc it gives you an idea that you are buying a particular stock at a fair price or at a higher price.

A lower P/E ratio indicates that the stock is undervalued, investors always looking for that type of stock, Higher P/E ratio indicates that the stock is overvalued & everyone is running behind that particular stock.

In this case, you should away from that type of stock because these types of stocks are highly overvalued, People are willing to buy that stock at more than its price, You should always stay away from the herd.

If a stock is overvalued, wait for some time when the stock price is reasonable.

3. If you are buying shares for the long term, then see if the company is going to stay even after 10 years.

If you are not sure about the future growth of the company then don’t buy that types of shares. Also, check what is the MOAT of a company.

If a company has a competitive advantage against the player in the same sector, MOAT act as a strong barrier to competitors with the competitive advantage company can protect its market share & profitability.

Conclusion 

I hope this helps you to find out the best shares to buy in India for long term. Before buying stock for the long-term investment you should do a complete analysis of the company. So that you don’t regret after investing money.

And make sure don’t invest blindly in the company which I mentioned above. Do the proper research yourself.

If you have any queries then you can comment below I would be very happy to help you.

Previous articleWhat Is ESOPs How Does It Work? | How You Can Skyrocket Your Wealth With ESOPs
Next articleBest Books On Stock Market That Every Indian Must Read
I love value investing, My goal is to create financial awareness in India For this I created a “unlockmyfinance” website and on this website, I teach people about finance & stock market

LEAVE A REPLY

Please enter your comment!
Please enter your name here