Long term investing is a popular investment strategy that intelligent retail investors use to grow their money. Benjamin Graham, the father of value investing, had defined intelligence in investing as someone who does not try to time the market but values the 'time in the market' by picking investment options that suit you best and not investing on hearsay.
While looking for the best stocks to buy in India for the long term, along with fundamentals and qualitative aspects like management quality and efficiency, the financials have to be viewed from a long term perspective. Long term is usually a period of more than 5 years for investors.
In this blog, we have comprised a list of the best Long Term Investment Stocks for 2023.
Best Stocks to Buy in India for Long Term for 2023
Here is a list of the best shares to buy for long term-
S.No. | Long Term Stocks India | Industry |
1. | Multinational Conglomerate | |
2. | Information Technology | |
3. | Information Technology | |
4. | Banking | |
5. | FMCG |
Factors to Consider Before Choosing the Best Stocks to Buy in India for Long Term 2023
The Market Capitalization of the Stocks Should be at least More Than Rs 10,000 crores.
Simply put, the market cap is the market value of the company. It is the price at which you can buy all the outstanding shares of the company. It is calculated by multiplying the number of outstanding shares by the cost of each share trading in the market. Since the stock price is a dynamic number, the market cap also changes frequently.
It tells the size of the company. More prominent companies with higher m-caps have already reached a particular stage and are less prone to volatility with lower risk levels.
Hence for assured and less volatile returns, a high market cap is an excellent measure to single out companies and select the long term stock to invest in.
Profit Growth for Three Years Should be More Than 10%
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, and interest expenses 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.
Best Long Term Stocks India: Overview
1) Reliance Industries
Reliance Industries Limited is an India-based company, which operates in the Oil to Chemicals (02C), Oil and Gas, Retail, Digital Services, and Financial Services segments and is one of the best shares to buy for long term.
2) Tata Consultancy Services (TCS)
Tata Consultancy Services Limited (TCS) is an India-based company engaged in providing information technology (IT) services, and digital and business solutions and is one of the safest share to buy in india.
3) Infosys
Infosys Limited is engaged in consulting, technology, outsourcing, and next-generation digital services. It is a top-notch global leader in digital services and consulting domain.
4) HDFC Bank
HDFC Bank Limited (the Bank) is an India-based private sector bank. The Bank caters to a range of banking services covering commercial and investment banking on the wholesale side and transactional/ branch banking on the retail side.
5) Hindustan Unilever
Hindustan Unilever Limited is an India-based consumer goods company. It is a subsidiary of the British company named Unilever. It is headquartered in Mumbai and is one of the most renowned FMCG company across the globe. Its shares are often a top choice of investors.
Additional Things to Remember
- Pick a few financials, look at qualitative aspects like management quality, ethics, and CSR activities, and assess them based on historical information and over three years or more.
- Filter companies, according to their market cap and pick leaders from respective industries which have shown proven long term sustainable performance.
- Align your risk level with the risks of the company. Conduct a business and industry analysis to understand industry-specific factors and risks.
- Invest in a company only if you understand the company and what it does.
Conclusion
This was the list of the best long term stocks to buy in 2023. Time lets your returns compound over time. If you do not withdraw your returns or interest earned midway, you compound returns on an accumulated number rather than just your principle; your returns will compound manifold.
Time helps us rule out volatility and short-term risks. If you invest Rs 1,000 in year one and you earn 10% returns on it, your amount at the end of year one will be Rs 1,100. If you let your money compound over time and do not redeem your returns, next year you will get returns of Rs 1,100.
Now do this exercise for more significant amounts of investment and for a longer time. The essence and magic of any investment are in the long term.
Disclaimer: The views expressed in this post are that of the author and not those of Groww.
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Research Analyst - Bavadharini KS
FAQs
What stock will grow the most in 2023? ›
- Bank of America's Best Growth Stocks of 2023.
- Amazon.com, Inc. ( AMZN)
- Constellation Energy Corp. ( CEG)
- CoStar Group, Inc. ( CSGP)
- Alphabet Inc. ( GOOGL)
- Halliburton Co. ( HAL)
- Eli Lilly and Company (LLY)
- Match Group, Inc. ( MTCH)
| Company Name | Stock Price 10 Years Back | P/E Ratio 10 Years Back |
|---|---|---|
| Eicher Motors Ltd. | 218 | 37.1 |
| Britannia Industries Ltd. | 242 | 30.7 |
| Pidilite Industries Ltd. | 189 | 26.7 |
| Trent Ltd. | 106 | 58.2 |
According to the analysis, companies like Zomato, Lemon Tree, CESC, NHPC and Motherson Sumi Wiring are expected to give the highest returns this year.
Which stocks will go up after Budget 2023? ›...
Synopsis
- KEC Int.
- NTPC.
- Adani Power.
- JSW Energy.
- NLC India.
In addition to this, the Indian government's green energy push has led to the renewables industry growing at an astounding rate. Moreover, the forthcoming budget for F.Y. 2023-2024 will likely push renewables even further. This makes the energy sector one of the best sectors to invest in India right now.
Which stocks can double in 2023? ›- Upstart could change the lending industry with its proprietary platform.
- Amazon is still profitable, and revenue growth remains healthy.
- Shopify's revenue is surging from pre-pandemic levels.
- Motley Fool Issues Rare “All In” Buy Alert.
- Featured Partner Offer.
- Best Penny Stocks To Buy Right Now In India 2023.
- Suzlon Energy Ltd.
- South Indian Bank.
- Reliance Power.
- Vodafone Idea.
- Bank of Maharashtra.
- Features of Penny Stocks.
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Brightcom Group | 21.73 |
| 2. | Fineotex Chem | 236.00 |
| 3. | Likhitha Infra. | 241.45 |
| 4. | R Systems Intl. | 251.40 |
- 5G Security. ...
- Virtual Reality Gaming. ...
- Virtualization Software. ...
- Digital Education. ...
- Healthcare Predictive Analytics. ...
- Cannabis Edibles. ...
- E-commerce Logistics. ...
- Solar Energy Solutions.
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Saksoft | 145.00 |
| 2. | Lords Chloro | 165.40 |
| 3. | Sarthak Metals | 179.05 |
| 4. | Jindal Stain. | 302.75 |
What are the 10 stock to buy in 2023? ›
Apple, Moderna, TSMC, Ramsay, Compass, James Hardie, Seek, Shiseido, RPMGlobal, Cellnex, Nexted among Future Generation's stock picks for 2023: Chanticleer.
Which Indian stock will go up in future? ›| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | EKI Energy | 647.30 |
| 2. | Tips Industries | 1516.55 |
| 3. | Supreme Petroch. | 375.50 |
| 4. | Manali Petrochem | 68.80 |
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Gretex Corporate | 99.00 |
| 2. | Sarthak Metals | 178.45 |
| 3. | Wealth First Por | 320.90 |
| 4. | Themis Medicare | 1224.30 |
- 1/11. Win some lose some. ...
- 2/11. Larsen & Toubro. ...
- 3/11. ICICI Bank. ...
- 4/11. Tata Motors. ...
- 5/11. ITC. ...
- 6/11. LIC. ...
- 7/11. Indian Hotels. ...
- 8/11. Dixon Technologies.
| Company | CMP (Rs) | Sales CAGR (3 yrs, %) |
|---|---|---|
| ADANI GREEN ENERGY | 619.6 | 35.6% |
| TUBE INVESTMENTS OF INDIA | 2,783.9 | 29.5% |
| UPL | 716.6 | 28.4% |
| UNION BANK | 73.3 | 25.8% |
Adani Ports is one of the stock which has rebounded most and now increasingly commentary coming in from fund managers suggests that some of them are nibbling into names such as Adani Ports or even Ambuja Cements.
Will stock market do well in 2023? ›Unfortunately, analysts are anticipating negative overall earnings growth will continue in the first half of 2023. Analysts project S&P 500 earnings will drop 5.7% year-over-year in the first quarter and another 3.7% in the second quarter.
How much will stocks increase in 5 years? ›| Period (start-of-year to end-of-2022) | Average annual S&P 500 return |
|---|---|
| 5 years (2018-2022) | 7.51% |
| 10 years (2013-2022) | 10.41% |
| 20 years (2003-2022) | 7.64% |
| 30 years (1993-2022) | 7.52% |
- Reliance Industries.
- Tata Consultancy Services.
- HDFC Bank.
- Infosys.
- Healthcare Sector. The global healthcare sector may reach a valuation of $63.90 billion in 2023. ...
- Information Technology Sector. ...
- Real Estate Sector. ...
- FMCG (Fast-Moving Consumer Goods) Sector. ...
- Infrastructure Sector.
Where will stock market be in 2023? ›
Most stock market forecasts for 2023 see moderate improvement. UBS targets a year-end 2023 S&P 500 at 3900 and KKR sees it at 4150. CFRA expects a 2.9% gain, which would put the S&P over 3900.
Which penny stock can become multibagger in India? ›| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Bhilwara Tech | 15.35 |
| 2. | NDA Securities | 10.60 |
| 3. | Sita Enterprises | 17.50 |
| 4. | Mercantile Vent. | 17.85 |
#4 Centum Electronics
Centum has a strong export market and derives over 75% of its revenues from overseas locations. Presently, its market is spread across North America, Europe and Asia. The company has high growth prospects in the area it specializes in and this factor makes it among multibaggers in stock market.
| Fastest Growing Penny Stocks | ||
|---|---|---|
| Price ($) | Revenue Growth (%) | |
| SNDL Inc. (SNDL) | 2.07 | 1,447.6 |
| Rocket Lab USA Inc. (RKLB) | 4.91 | 1,092.7 |
| IonQ Inc. (IONQ) | 4.88 | 1,085.8 |
You have to select those stocks that have high liquidity. Don't buy stocks that are highly volatile because these kinds of stocks may over react to any news in a bigger way. Conduct thorough research and then buy a stock. You can buy shares of a company from primary as well as secondary market.
Which stock gives highest return in last 5 years in India? ›| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Best Agrolife | 1116.00 |
| 2. | National Standar | 4773.45 |
| 3. | Raj Rayon Inds. | 86.30 |
| 4. | Authum Invest | 217.90 |
| Company Name | LTP | High |
|---|---|---|
| Pulz Electronics | 66.4 | 66.4 |
| Kirl. Ferrous | 454.15 | 456 |
| Wonderla Holiday | 459.5 | 467.4 |
| Power Mech Proj. | 2405.7 | 2457.6 |
On the domestic front, earnings estimates in India are expected to grow in mid-teens in the coming two years. Valuations could get impacted if there is too much disappointment from slower economic growth on account of higher commodity prices including high energy prices leading to potential earnings downgrades.
Which industry is growing in India 2025? ›India's chemical industry is expected to reach US$ 304 bn by 2025, clocking an annual growth rate of over 15%.
Which share grow fast in future? ›| S.No. | Name | CMP Rs. |
|---|---|---|
| 5. | Natco Pharma | 569.10 |
| 6. | Jyothy Labs | 189.50 |
| 7. | NBCC | 36.25 |
| 8. | Hinduja Global | 1206.70 |
Should I invest in Adani Power? ›
"While the value of Adani shares are almost at a 52-week low, the volatility in the shares is still fairly high and may continue to be so in the short term.So, I would not advise to invest in the shares in the short term unless one wants to play on the speculation.
Is it good to invest in Tata Steel for long term? ›Meanwhile, in January 2023, Tata Steel rose 6 percent whereas JSW shed 6 percent. In the long term, both steel stocks have given multi-bagger returns. Tata Steel has rallied 101 percent in the last 5 years while JSW Steel has surged 156 percent.
What is the best growth stock? ›| Company Name & Symbol | Revenue Growth (Last Qtr vs. Same Qtr Prior Yr) | Price Performance (1 Yr) |
|---|---|---|
| e.l.f. Beauty Inc. (ELF) | 49.35% | 182.82% |
| Aehr Test Systems (AEHR) | 54.15% | 145.22% |
| Catalyst Pharmaceutical Inc. (CPRX) | 59.21% | 95.64% |
| Axcelis Technology Corp. (ACLS) | 29.35% | 85.70% |
- Comcast CMCSA.
- Taiwan Semiconductor Manufacturing TSM.
- Roche Holding RHHBY.
- Walt Disney DIS.
- Equifax EFX.
- TransUnion TRU.
- International Flavors & Fragrances IFF.
- Anheuser-Busch InBev BUD.
- Reliance Industries. An India-based company that operates in Oils To chemicals, Oil to Gas, retail,, Digital Service and financial service is considered as one of the best stocks to buy for long-term Prospects. ...
- TCS. ...
- Infosys. ...
- Hindustan Unilever. ...
- HDFC Bank.
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Hindustan Motors | 15.23 |
| 2. | Premier | 2.38 |
| 3. | PAE | 6.60 |
| 4. | Starlite Comp. | 2.47 |
- Mukesh Ambani led Reliance Industries Limited is the highest profit-making company in India having a diversified portfolio in multiple sectors such as oil, gas, retail, banking, digital and others. ...
- In 2022, it became the first Indian company to cross $100 billion in terms of revenue.
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Standard Inds. | 29.75 |
| 2. | EKI Energy | 657.00 |
| 3. | Ksolves India | 443.30 |
| 4. | Guj. Themis Bio. | 647.35 |
...
7 Growth Stocks That Can Double in 2023.
| Ticker | Company | Price |
|---|---|---|
| RIG | Transocean | $5.39 |
| DRS | Leonardo DRS | $13.03 |
| CURLF | Curaleaf Holdings | $3.97 |
| RIOT | Riot Platforms | $5.64 |
- Energy. Information. technology. Health care. Utilities.
- Real estate. Materials. Industrials. Communication. services.
- Consumer. staples. Consumer. discretionary. Financials.
Will shares go up in 2023? ›
While the market as a whole may tumble in 2023, some sectors may be poised to outperform amid a downturn. Higher rates have hurt growth stocks, but many value stocks have performed well, or at least not nearly as poorly. And that's one area to watch in 2023, say experts.
What stocks will Morgan Stanley pick for 2023? ›Stocks like Dick's Sporting Goods & Verizon are Morgan Stanley's best buys for 2023.
Which sectors to invest in 2023 for long term? ›- Speciality Chemicals. India is among the world's fastest-growing marketplaces for all types of chemical goods. ...
- Green Energy. ...
- Electric Mobility. ...
- Digital Transformation & Inclusion.
Already a huge global market, e-commerce logistics is poised to achieve steady growth in the future. The e-commerce logistics market was an estimated $243.4 billion in 2020 and is expected to rise at a CAGR of 18.9% to reach a staggering $819 billion by 2027, according to the report eCommerce Logistics.
Which sector will grow in next 5 years? ›...
Renewable Energy Sector
- Reliance Power Industries.
- Indian Energy Exchange.
- Indraprastha Gas Ltd.
- Borosil Renewables.
- Siemens.
Stocks are down
When something's cheap you can buy more of it for the same price, which makes 2023 a great time to start investing. Using the ratio of stock prices to corporate earnings as a measure of valuation, the S&P 500 now trades its cheapest level in years.
...
Stock Markets Crash Predictions By Country.
| Market Crash Predictions by Country | Likely (2023) | Unlikely (2023) |
|---|---|---|
| China | 40% | 50% |
| France | 42% | 35% |
| Germany | 43% | 30% |
| 🌎 Global Average | 50% | 31% |
After ending the year down nearly 20%, the S&P 500 index is in the green for 2023. And the Nasdaq Composite — which plunged 33% in 2022 — is up more than 4.5% this year. So when will stocks fully recover from the bear market? Many experts appear optimistic it will happen in 2023.
Which stock gives highest return in last 3 years? ›Flomic Global Logistics Ltd. SG Finserve Ltd. Sejal Glass Ltd. Bohra Industries Ltd.
What are the best biotech stocks to invest in? ›- Catalyst Pharmaceuticals (CPRX)
- Biomarin Pharmaceutical (BMRN)
- Amphastar Pharmaceuticals (AMPH)
- Horizon Therapeutics (HZNP)
- Vertex Pharmaceuticals (VRTX)