In this article, we have comprised a list of the best Best Long Term Stocks to Buy in India 2023,2024,2025,2026,2030.

Long term investing is a popular investment strategy that intelligent retail investors use to grow their money. Warren Buffet, one of the top value investor, had defined value 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.

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.

Which Stock is Best to Buy?

How do you know which stocks are the best ones to buy? That’s a question that is easy to answer if you consider certain factors before making your choices.

Here are some of the factors of companies whose stock you wish to buy, to look at: 

  • The Market Capitalization of Companies (also known as Market Cap) – Companies with a high market capitalization indicates that they are solid in terms of their performance. These companies are typically stable, and their growth paths are positive. Stocks of such companies are bound to tide over market volatility and be profitable in the long run.
  • Consistent Profit – If you consider the question, “Which are the best stocks to buy now in India?”, you may get the response of “the stocks which have displayed more profit in the past”. These are stocks whose value regularly rises relative to other stocks. Although the number of stocks you may own is low, the high value makes up for substantial gains. 
  • Gains for the Long Term – Most “blue chip” company stocks are great investments if held for the long run. The best stocks that almost guarantee good returns fall under this category. 
  • Analysts’ Picks – In 2023, analysts and experts believe that two key factors will determine how well stocks perform. These are CAPEX and credit growth. Consequently, stocks to look for in 2023 would largely be in the BFSI, infrastructure, defense, capital goods, housing, railways and cement sectors.
  • Evaluate Markets – When you are about to take any position in the stock market, check how the larger market is operating. It is common knowledge that the movement of stocks depends up to 75% on the momentum of the market at large. You know how a tide that rises lifts boats, so the market can raise the value of stocks.
  • Furthermore, knowing which stock is best to buy comes from viewing the movement of a major index. This shows you a general pattern of movement in stock prices over a time frame. This gauge can help your choice. 
  • Pay Attention to Events – Events, both global and local, can affect the markets and stocks in particular sectors. For instance, if the housing sector is facing a decline, then any stocks linked with this sector, like steel and cement, may also see a downturn. 

Factors to Consider Before Choosing Best Long Term Stocks to Buy in India 2023,2024,2025,2026,2030.

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.

Reliance Price

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.

Hope you liked our Article on Best Long Term Stocks to Buy in India 2023,2024,2025,2026,2030, please read our other article on “Best Asian Stocks to buy now“