Best Stocks to Buy for Long Term Investment (2022):

  • “Long Term” is usually considered to be a period of more than 5 years.
  • Long-term investing in India is a very popular investment strategy that intelligent retail investors use to grow their money and expand their portfolio.
  • In the stock market world, Benjamin Graham is considered the father of value investing. He has defined intelligence in investing as someone who does not try to time the market but values each and every “time in the market” by trying to pick up the investment options that will suit him the best.

Best Stocks to Buy for Long-Term Investment

There are several stocks that are great for long-term investing.

The following is the list of the Top 10 Best Stocks to Buy for Long Term Investment:-

Sr. No.Stock NameStock PriceIndustry
1Tata Consultancy Services (TCS)3233.34Information Technology
2Mindtree Limited2875.00Computer Software
3Asian Paints Limited2681.00Consumer Goods
4Reliance Industries2585.20Multinational Conglomerate
5Hindustan Unilever2215.80FMCG
6Polycab India2127.15Electric Equipment and related products
7Infosys1453.30Information Technology
8Housing Development Finance Corporation Limited (HDFC)1349.40Banking
9Marico481.15Consumer Goods
10Aarti Drugs Limited392.50Pharmaceuticals
Research By, Trading Fuel Lab

#1. Tata Consultancy Services (TCS)

  • TCS is an Indian company that provides IT services and digital business solutions.
  • It is one of the safest shares to buy.
  • It has its headquarters in Mumbai, and the main cherry on the cake is that it is a part of the Tata Group.
  • TCS stocks trade mainly between 52-week highs and lows, and this is also considered the best technical indicator for the company.
52-week High4043
52-week Low3023.82
Revenue160,341
Net Profit38,187
Basic EPS104.34

#2. Mindtree Limited

  • Mindtree is also an Indian company that provided IT and consulting services.
  • It is a part of the Larsen & Toubro group.
  • It has its headquarters in Bangalore and currently has more than 307 active clients.
  • Mindtree Limited stocks trade mainly between 52-week highs and lows, and this is also considered the best technical indicator for the company.
52-week High5060
52-week Low2438
Revenue10,832.40
Net Profit1652.80
Basic EPS100.30

#3. Asian Paints Limited

  • The company is engaged in the business of manufacturing, selling, and distributing paints, coatings, and products related to home décor, bath fittings, and other related services.
  • It has its headquarters in Mumbai.
  • The company is a holding company for Berger International.
  • Asian Paints Limited stocks trade mainly between 52-week highs and lows, and this is also considered the best technical indicator for the company.
52-week High3590
52-week Low2560
Revenue25,640.40
Net Profit3134.71
Basic EPS32.68

#4. Reliance Industries

  • Reliance Industries is an Indian company.
  • The company has products that mainly operate from oil to chemicals like oil and gas, retail, financial services, and digital services.
  • It has its headquarters in Mumbai.
  • Reliance Industries Limited stocks trade mainly between 52-week highs and lows, and this is also considered the best technical indicator for the company.
52-week High2856.15
52-week Low2016.25
Revenue459,247
Net Profit39,084
Basic EPS59.24

#5. Hindustan Unilever

  • HUL is an Indian FMCG company.
  • The company is a subsidiary of Unilever, a British company, and its products include things like food and beverages, personal care, and cleaning agents.
  • The company has its headquarters in Mumbai.
  • The company’s portfolio has 44 product brands in 14 different categories.
  • HUL stocks trade mainly between 52-week highs and lows, and this is also considered the best technical indicator for the company.
52-week High2859.30
52-week Low1901.55
Revenue51,586
Net Profit8818
Basic EPS37.53

#6. Polycab India

  • Polycab is an Indian company engaged in the business of manufacturing and selling wires and cables.
  • Apart from wires and cables, the company also produces products like electric fans, LED lighting, switches, solar products, and other accessories.
  • The company has its headquarters in Mumbai.
  • The company already has 25 manufacturing locations.
  • Polycab India Limited stocks trade mainly between 52-week highs and lows, and this is also considered the best technical indicator for the company.
52-week High2820
52-week Low1762
Revenue12188.41
Net Profit931.27
Basic EPS62.39

#7. Infosys

  • Infosys is an Indian IT company that provides services like business consulting, outsourcing, and IT services.
  • The company is the second-largest IT company in India after TCS.
  • The company was founded in Pune but has its headquarters in Bangalore.
  • Infosys stocks trade mainly between 52-week highs and lows, and this is also considered the best technical indicator for the company.
52-week High1953.90
52-week Low1367.15
Revenue107,164
Net Profit21,235
Basic EPS50.27

#8. Housing Development Finance Corporation Limited (HDFC)

  • HDFC Bank is an Indian private sector bank.
  • The bank provides several banking services within the range of commercial and investment banking on the wholesale side and transactional/branch banking on the retail side.
  • The company has its headquarters in Mumbai.
  • It is India’s largest private sector bank by assets and the world’s 10th largest bank in market capitalization.
  • HDFC stocks trade mainly between 52-week highs and lows, and this is also considered the best technical indicator for the company.
52-week High1725
52-week Low1324.05
Revenue157,263.01
Net Profit36,961.33
Basic EPS66.80

#9. Marico

  • Marico is an Indian company that has been dealing with goods related to consumer welfare like health, beauty, and wellness.
  • The main products of the company are Parachute, Saffola, Hair & Care, Nihar Naturals, etc.
  • The company has its headquarters in Mumbai.
  • Marico stocks trade mainly between 52-week highs and lows, and this is also considered the best technical indicator for the company.
52-week High607.70
52-week Low455.65
Revenue7857
Net Profit1163
Basic EPS9.02

#10. Aarti Drugs Limited

  • Aarti Drugs Limited is an Indian company that is engaged in the manufacturing of active pharmaceutical ingredients, pharma intermediaries, and specialty chemicals.
  • The company is also engaged in formulation with the help of its wholly-owned subsidiary, Pinnacle Life Science Private Limited.
  • The company has its headquarters in Mumbai.
  • All the manufacturing units of the company are GMP certified.
  • Aarti Drugs Limited stocks trade mainly between 52-week highs and lows, and this is also considered the best technical indicator for the company.
52-week High749.75
52-week Low382
Revenue2255.94
Net Profit195
Basic EPS21.04

Main factors to be considered before choosing Best Stocks to Buy for Long Term Investment perspective:-

There are several factors that are interlinked and intertwined when choosing the best long-term stocks.

The main factors are as follows:-

The profit growth of the company should be more than 10%:-

  • The main consideration required is the net profit because it takes all the aspects into its arena.
  • It accounts for all the components of costs like taxes, interest, and outstanding debts, thus reflecting the actual earnings of the entire business.
  • The net profit of the business is considered the bottom line of the business because it comes at the bottom of the profit statement after accounting for all the costs and expenses.
  • We need to make sure that the profit growth of the company that we are planning to invest in is more than 10%.

The market capitalization of the stocks should be at least Rs 10,000 crores:-

  • In layman’s language, market capitalization is nothing but the market value of the company.
  • Market value is the price at which we can buy all the outstanding shares of a company.
  • Simply, market capitalization is calculated by multiplying all the outstanding shares by the cost of each share trading in the stock market.
  • As the stock price is dynamic, the market capitalization is also considered volatile.
  • All the companies with higher market caps have already reached a particular stage and are less prone to volatility.
  • For this reason, market capitalization is considered an excellent way to select stocks for long-term investment.

Other additional factors to be considered for investing:-

  • Firstly, pick up a few financials, look at all the qualitative aspects like the management quality, ethics, and CSR activities, and assess them based on all the historical information for over 3 years.
  • Filter the companies based on their market capitalization and pick up the leaders from the particular industry that has shown long-term sustainable performance.
  • Align your level of risk with the risk of the company. Conduct an analysis of business and industry to understand industry-specific factors and risks.
  • Invest in the company once you understand the company and have the know-how of what it does.
Conclusion:

The above given is the list of the Best Stocks to Buy for Long Term for investment. These stocks will let your return compound over time.

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Author

Prashant Raut is a successful professional stock market trader. He is an expert in understanding and analyzing technical charts. With his 8 years of experience and expertise, he delivers webinars on stock market concepts. He also bags the ‘Golden Book of World Record’ for having the highest number of people attending his webinar on share trading.