which indian stock to buy for long term

Top 10 – Best Stocks to Buy for Long Term in India 2022

Sr.	Company Name	IV (Rs)	P/E Ratio	EPS
1	Alkem Laboratories Limited	2,028.86	28.53	136.42
2	Housing Development Finance Corporation ...	1,968.11	25.18	111.94
3	Sundaram Finance Limited	1,285.25	23.09	106.33
4	ACC Limited	1,140.07	20.70	104.81

Jun 16 2022

Full Answer

Which are the best long term stocks to buy now in India?

Summary Table of Best Long Term Stocks to Buy now in India COMPANY NAME NSE CODE BSE CODE CMP (12th Nov’21) INDUSTRY RATING Caplin Point Labs CAPLIPOINT 524742 ₹ 863 Pharmaceuticals 0.5 Marico MARICO 531642 ₹ 547 Personal Products 4.5

How to identify the best stocks to buy in India?

To identify the best stocks to buy in India, we must use EVPS instead of stock price. Comparing EVPS with the intrinsic value will give a better feel about the price valuation of the stock. But we still have a bigger puzzle to solve.

Which are the best penny stocks to buy in India?

List of Best Penny Stocks to Buy in India Company Name Share Price (on 17/8/21) Market Capital (in crore) Book Value per Share Reliance Power ₹10.4 ₹3,553 cr ₹36 Jaiprakash Power ₹4 ₹2,741 cr ₹15 South Indian Bank ₹9.8 ₹2,040 cr ₹28 Vodafone Idea ₹5.75 ₹16,523 cr ₹ (-13.3) 14 more rows ...

How to select the best long-term stocks to buy?

– Assess the Sector/Industry Segment of the Company – Detailed profile, pros and cons of stocks in the model portfolio – Video from our team on how you can select the Best Long-term Stocks – Model Portfolio – A detailed table with various parameters for Best Long-term Stocks to buy Invest in stocks for the long term

What is TCI Express Limited?

TCI Express Limited. TCI XPS was established in 1996 as one of the foremost divisions of Transport Corporation of India (TCI), India’s most admired logistics company. It is also one of the best stocks to buy in India for the long term.

What is Supreme Industries?

Supreme Industries Ltd is engaged in the manufacture of products like Cross-Laminated Films, HMHD Films, Multilayer Films, SWR Piping Systems, PP Mats, moulded furniture, and many more. The company owns the largest plastics processors in India. It is also one of the best stocks to buy in India for long term investment. The product range of the company includes Moulded Furniture, Material Handling Products, XF Films and Hi-Performance Packaging Films- This product is extensively used by food industry for packaging products. The company also manufactures industrial moulded products, protective packaging and plastic piping systems. The company is also engaged in the business of Construction, Plastics Products.

What is GMR Infrastructure?

GMR Infrastructure Ltd is the infrastructure holding company formed to fund the capital requirements of various infrastructure projects in the Groups Energy, Highways and Airport and SEZ sectors. It is always present on almost every list of the best stocks to buy in India for long term. It undertakes the development of infrastructure projects through its various subsidiaries. The company is engaged in restructuring and modernization of airports. They are also involved in the development of power plants and highways as well as engaged in the production of sugar; and development of a multi product special economic zone in Krishnagiri district in Tamil Nadu. The company is also involved in the business activities of EPC.

What is a tasty bite?

Tasty Bite Eatables Ltd is in the business of manufacturing and marketing ready-to-serve food and frozen vegetables. It’s easily one of best stocks to Buy in India for long term. The company sells their products under the brand name Tasty Bite. Tasty Bites has exceptional retort pouches developed for the Apollo space programme. Tested to withstand extreme temperatures and heights from well below sea level to as high as the moon, this retort packaging has made Tasty Bites favourite with campers, mountain climbers, sailing expeditions and desert safaris.

How long is a good investment in the stock market?

But what exactly constitutes a “long term” investment in the stock market? On many occasions, business cycles tend to last for about seven years. Investing for a time period of five-seven years qualifies as medium-term investing while any investment done in the share market for longer than seven years qualifies as long term investment. In this post, we will take a look at the best available stocks to buy in India for long term investment. Let’s get started.

What does low P/E ratio mean?

Donʹt overemphasize the P/E ratio. It is a tool that works best when combined with other tools. A low P/E ratio doesnʹt really mean security is underestimated, nor completes a high P/E ratio essentially mean a company is overvalued. So don’t just depend on it for your long term investment decisions.

Where is Aavas Financiers Limited?

Aavas Financiers Limited (Formerly known as Au Housing Finance Limited) was incorporated as a private limited company at Jaipur, Rajasthan, under the name of “Au Housing Finance Private Limited” under the Companies Act, 1956 on February 23, 2011. It formally started its operations in March 2012. It is definitely one of the best stocks to buy in India for long term

What is polycab?

Polycab started off as a manufacturer of copper wiring for infrastructure and other commercial uses and later diversified into high margin FMEG (Fast Moving Electronic Goods) such as fans, lights & luminaries and other consumer electronics. The company has major growth opportunities as the country sees development of infrastructure and as electricity distribution and consumption grows in India. Another trend that has been rampant is the consolidation of copper manufacturers moving from unorganized to organized players, thereby allowing Polycab to increase its market share and market size as well. Another theme playing out for the company is the penetration of electric goods among household consumers which provides a huge growth opportunity to Polycab as the consumption of durable goods rises. To give an idea of the margins generated from FMEG, the company currently derives 86% of revenues from copper wire products but FMEG provides for 96% of the total operating margins. As this segment starts expanding further, it can grow both revenues and profitability for the company.

What is the Indian pharmaceutical market?

Secondly, local players have enjoyed a dominant position driven by formulation development capabilities and early investments. Third, price levels are low driven by intense competition. While India ranks tenth globally in terms of value, it is ranked third in volumes. These characteristics present their own opportunities and challenges for pharma companies. While the ongoing pandemic has provided huge opportunities for pharma, another factor is the development of domestic pharma demand. Pharma companies are well equipped with expertise and scale and as the demand for pharma stocks picks up, these companies stand to benefit from their growth by a great deal.

What is the most preferable option for a company to look for?

Hence, the more preferable option is to look for those companies that rise up the ranks to become one of the top players in the given sector, can navigate well in the sector and ensure strong financials despite the competition. Also, look for companies for whom growth potential exists in the form of moving up the value chain in the low growth sector.

What is the growth of a company?

Growth of a company comes not only with scale but with efficiency in operations and this is a gradual process. Strategies taken by the management make or break the path for growth and as investors we must always study a company’s business model. It is also essential to have a macro perspective while running a business and keep in mind various factors such as government policy, interest rates, stakeholder claims (including debt and equity holders) among others.

Why is regulation important?

The primary reason for regulation is to protect the consumer and the government’s interests over that of the company. This results in value erosion as the benefits that would have come to the company are transferred over to the consumer and the government, leaving very little for the company’s shareholders.

What is the objective of a company?

Companies run with the objective of primarily earning profits and they strive continuously to grow these profits further. However, in the process it is the various strategies and decisions taken by them which mould their path to growth. This factor is what differentiates the good companies from the bad ones, the profitable from the unprofitable. The profitable ones generate significant returns for their shareholders.

Why is it important to invest in stocks for the long term?

Investors are often advised to invest in stocks for the long term so as to reap benefits of compounded growth. Power of compounding is an important concept one needs to understand to really appreciate the benefits of long term investing. Compounding is similar to a multiplier effect since the interest that is earned by the initial capital also earns an interest, the value of the investment grows at a multiplicative rate rather than an additive rate. The higher the rate of return, the steeper the curve of growth and wealth creation. To give an example, an investment of just ₹1 lakh in year 1 at 10%, invested for 20 years can compound to ₹6.72 lakh giving a phenomenal return of 672% on capital.

What is the largest bank in India?

State bank of India is India’s largest lender. The bank has around 24,000 branches in India and around 190 overseas branches in 35 other countries. The bank’s loan book is around Rs 24 lakh crore. Its net NPA ratio has been falling almost sequentially since the quarter ended June 30, 2018, when its net NPA ratio was 5.95% of the gross advances as compared to a net NPA ratio of 1.59% in the second quarter of FY21. Afte the net NPAs peaked at 5.73% of net advances at the end of March 2018, the net NPAs have fallen for both the financial years after that, 3.01% at the end of March 2019 and 2.23% at the end of FY20.

What is the RIL company?

RIL started as a textiles company in the 1950s and then diversified into multiple business channels. Currently, the company has oil and gas, refining and petrochemicals as its core businesses. Other businesses include retail, telecom, media and many other subsidiaries. RIL is one of the top 10 stocks to buy for long term.

What is a HUL?

HUL is one of the largest FMCG companies in India. Some of the brands under HUL are Glow & Lovely (erstwhile Fair & Lovely), Lifebuoy, Clinic Plus, Vim Bar, Bru Coffee and many others. The company was founded in 1933.

What is net profit?

While operating profit takes only the core business into account, net profit takes all aspects of a company. It also accounts for costs such as taxes, interest expense for an outstanding debt and reflects the real earnings of the entire business. The net profit comes at the bottom of the profit statement after accounting for all costs and expenses, hence is known as the bottom line.

What does OPM mean in accounting?

OPM= operating profit/sales revenue. That is for every Re 1 of sales, how much profit is a company generating from its core businesses. It is a good indicator because most analysts derive real value from a company when it makes good businesses from its core businesses rather than from any ad hoc financing activities.

What is operating profit?

Operating profits is the profits that any company earns from its core business. For example, Asian Paints core business will be manufacturing and selling different kinds of paint. Any other businesses it has would be ancillary or subsidiaries. OPM or operating profit margin, it examines the operating profit of a company to its revenue.

How to calculate market cap?

It is calculated by multiplying the number of outstanding shares by the cost of each share trading in the market.

What is a pro investor?

Pro investors are always looking for exceptional companies whose stocks are trading at a price below their justified price. A more niche name for the justified price is intrinsic value. Being aware of the price valuation methods prevents people from falling into the value trap.

Why is it important to be aware of price valuation methods?

Being aware of the price valuation methods prevents people from falling into the value trap. Novice investors often fall for famous names. Two points to note:

What are the three most important parameters that build value?

The three most important parameters that build value are future profits, free cash flow, and the rate of their growth.

What is a deeper analysis?

A deeper analysis is required to unearth the strengths and weaknesses of a company. Such an analysis is called fundamental analysis . In this article, we will not go into those details. If one wants to know more about it, check the provided link.

What is a profitable business?

A profitable business that is also growing fast can be a good bet. Read more. Management: The quality of management who run the business contributes to its strengths. Ethics, qualification, and aptitude of the top managers play role in the long-term performance of its stocks.

Why is profit important?

Profit & Profitability: Nobody wants to invest in a loss-making company, hence profit is an important metric for investors to judge a company. But profitability is even more important. Ratios like ROE, RoCE, ROA, etc can highlight a company’s profitability. Read more.

What makes a stock good for investing?

What can make a stock good for investing? It will be a combination of the ‘quality of a business’ and the ‘price valuation’ of its stocks.

How long does it take to open a demat account with Samco?

If you don’t have a demat account with Samco Securities then open it right away. It just takes 15-20 minutes to open a demat account.

How many stocks are in Digital India basket?

Digital India basket has nine stocks in its portfolio. It was the top performer with 67.14% returns. Domestic Education basket provided the best SIP returns in 2020. Yes, you can even start a systematic investment plan for any basket of your choice.

How long are baskets curated?

These baskets are curated based on duration of investment of 5 and 10 years.

What is the advantage of investing with stock basket?

Another advantage of doing long term investing with StockBasket is that we charge a fixed fee instead of the percentage commissions charged by these mutual funds or portfolio managers.

What is stock basket?

StockBasket is a unique long term investing platform which solves several problems of retail investors. We would like to offer this platform for free. But you know that developing and maintaining such platform incurs lot of cost.

How many data points does StockBasket have?

StockBasket uses a unique proprietary model that processes more than 20 million data points daily. It decides the quality of stocks based on more than 60 intelligent parameters and recommends best stocks for long term in each basket.

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What is penny stock?

Penny stocks are generally considered those stocks which trade around or in single digit or penny price. Because of very low price, such kind of stocks are easily able to rise multifold times when a strong buying interest comes into that stocks. However, because of low price, they are able to decline by a great percentage also when someone sell ...

Why do penny stocks decline?

Generally, a stock trading in penny price could be due to either very small size of the company, collapse of the business which resulted into heavy decline in shares, or financing problems.

How much can you earn from penny stocks?

Along with High Risk, Penny stocks comes with huge potential too! If you entered in a Penny stock at the right time and kept the shares for the appropriate time, you can easily earn 50% to 300% returns from the stock. Depending upon the share, return could skyrocket upto 500% or higher!

What is Vodafone Idea?

Vodafone Idea is a Aditya Birla Group and Vodafone Group partnership. The company provides pan India Voice and Data services across 2G, 3G and 4G platform. Company is the third largest wireless operator by subscribers in India.

What is Alankit business?

Alankit is engaged in the business of e-governance and sale of e-governance products. Recently, company has been empanelled as Service Provider for processing of Ayushman Bharat Card Request with National Health Authority, Ministry of Health & Family Welfare, Government of India.

How many branches does South Indian Bank have?

South Indian Bank is one of the oldest banks of South India. Bank was set up by a group of people to provide a safe and efficient repository of savings of the community and need based credit at reasonable rates to businesses of Thrissur (Kerala) area. As on 31st December 2020, the bank had a network of 877 branches and 1443 ATMs across the country.

What is JP power?

Jaiprakash Power or JP Power, is a part of Noida based Jaypee Group. The company was incorporated in 1994 to set up and operate hydroelectric and Thermal Power projects and supply electricity from power plants in the country. Company current runs the largest hydroelectric power plant in the private sector in India.