Choosing stocks for long-term investment in India can be a daunting task. There are many factors to consider; the company's financial performance, growth rate, share price, market capitalization, and more.
But in case you don't want to do all that research and analysis yourself, today you are in luck! In this article, we have handled all the hassle and hand-picked the five best stocks for long-term investment in India for you.
- State Bank of India
The country's largest bank by assets has been around since 1955. Boasting over 450 million customers in 32 countries across Asia, Africa, North America, and Europe, SBI dominates retail, corporate and investment banking, credit cards, insurance, asset management, pension plans and related verticals.
It is also well positioned to benefit from the government's push towards digitization. Over the last decade, the bank has grown at an impressive rate with strong balance sheet metrics, making it an excellent stock to invest in for long-term investors. It mostly finds mention among stock market franchise brokers.
- Hindustan Unilever Ltd
Headquartered in Mumbai, this consumer goods company sells hundreds of brands under some of the most famous labels like Fair & Lovely, Dove, Pond's, Pears, Lux, Lifebuoy etc. With its operations spread out across multiple geographies, HUL will be able to weather even the worst downturns. Its focus on innovation and customer-centricity has helped it stay ahead of the competition. If you believe in the brand equity of these popular products, then investing in HUL could be a wise decision.
- Maruti Suzuki
Headquartered in Gurgaon, this automotive manufacturer is India's largest car exporter. It competes with Hyundai, Honda, Ford, Mahindra, Tata, Volkswagen, Skoda, Renault and other global brands in the passenger vehicle segment. Maruti's dominance in the domestic market has allowed it to capture a 42% market share of India's passenger car segment. In fact, with its popularity among Indians, Maruti has become one of the top stocks for long-term investment in India.
- Reliance Industries
A conglomerate based in Mumbai, RIL is perhaps the best-known Indian company abroad. It operates in oil refining, petrochemicals, retail, telecom, media and entertainment and more. It owns the world's largest refinery complex, the Jamnagar plant. With the recent launch of the Jio 5G service, RIL is poised to disrupt the Indian telecom industry. As the telecom market matures, the company's other businesses too will start contributing meaningfully. This makes it a great long-term bet for investors.
- Tata Consultancy Services
Headquartered in Mumbai, TCS is one of the world's biggest companies providing IT services and owns the most valuable Indian brand. It employs over 6 lakh people across the globe. In the fiscal year 2021, it generated consolidated revenues of $25 billion. The company offers consulting, systems integration and outsourcing services to clients across industries. Its BFSI (Banking, Financial Services & Insurance) vertical leads the revenue contribution, followed by Retail, Telecom and Manufacturing. With its global presence, it has the ability to generate large amounts of recurring revenue streams.
These five stocks have been selected based on their current performance and long-term prospects. However, please note that this list is not an endorsement to invest in these stocks. It is merely meant to give you an idea about what kind of stocks to look out for when considering long-term gain. As a responsible trader, you should seek professional advice and consult your stock market franchise before investing.