Top 10 Stocks for Long Term Investment in 2023

Are you someone who is looking for long term investment with greater returns and a financially stable future? then this article is for you. Long term investment stocks are the priority investment choice of informed and intelligent investors. They know that choosing the best stocks for long term investment will not only teach them money management in the present but secure their future too. But the question that what are some of the best stocks for long term investment in India to put your money into? To answer this after exhaustive research, this article is put up with the list and information of best stocks for long term investment in India. So, read the article till the end and invest wisely.

10 Best Stocks for Long Term Investment in India

The 10 best stocks for long-term investment with their performance over the years are as follows:

1. HDFC Bank 

Housing Development Finance Corporation Limited or HDFC Bank is one the largest banking institutions in the private sector. It has a network of over 5,500 branches and 16,000 ATMs. On the wholesale side, HDFC covers commercial and investment banking. Whereas on the retail side, it covers transactional/ branch banking. The bank is regarded as offering one of the best stocks for long-term investment for its

• Customer-centric approach.
• Robust risk management practices.
• Strong financial performance.

With a market capitalization of ₹9,45,359 Cr as of 2023, HDFC offers one of the safest and best stocks to invest in India for the long term. Since the last three years, the bank has maintained a healthy Return on Assets (ROA) of 1.91% and a solid track record of Return on Equity (ROE) of 16.56%, making it a popular choice among investors.

 2. Infosys 

Infosys is a global leading provider offering consulting, technology, outsourcing, and next-generation digital services. Infosys has been named one of the most ethical Companies by Ethisphere three years in a row. The company is well-known for its 

• Focus on innovation.
• Strong corporate governance.
• Commitment to sustainability.

With a market capitalization of 5,28,339 Cr. as of 2023, Infosys is among the 10 best shares to buy today for the long term. 

3. Kotak Mahindra 

Kotak Mahindra Bank is one of India’s fastest-growing private-sector banks. It has a solid market position and a diverse lending portfolio. 

With a network of over 1,600 branches and 2,500 ATMs, Kotak Mahindra Bank is among the best Indian stocks for the next 10 years. The bank is regarded as the most dynamic for its

• Strong focus on customer service.
• Innovative products.
• Technology-driven solutions

With a market cap of Rs. 3,86,901 Cr., the stock of Kotak Bank has generated stable returns over the years. It is an excellent choice for long-term investors seeking exposure to the banking industry.

4. Tata Consultancy Services

Tata Consultancy Services (TCS) is a 50-year-old IT services, consulting, and business solutions firm that has worked with many of the world’s major corporations. The company is regarded as the most prestigious company for its 

• Innovation.
• Commitment to quality.
• Customer-centric approach. 

Tata Consultancy Services (TCS) is the second largest company in India, with a market capitalization of Rs. 1,266,031 Cr. TCS is the global leading provider offering long-term stocks to buy and hold in 2023. 

5. Bajaj Finances 

Bajaj Finance is one of India’s biggest non-banking financial firms (NBFCs), providing a variety of financial products and services to both retail and business customers. Consumer financing, SME credit, business loans, wealth management, and insurance are among the company’s goods and services. 

Bajaj Finance has expanded fast in recent years and is largely recognized as one of India’s most creative and inventive non-banking finance companies. The stock of Bajaj Finance has generated stable returns over the years. That makes it an excellent choice for long-term investors seeking exposure to the banking industry.

6. Godrej Consumer Products

Godrej Consumer Products, established in 2001, is a leading emerging markets company. The company began as part of India’s Swadeshi movement which was the original ‘Make in India’ movement. Moneyworks4me’s research regarding Godrej’s financial track record over the last ten years suggests that the firm is of high quality. 

While operating in 90+ countries and serving 1.2 Billion consumers, the company is aimed at providing long-term and sustainable value to its investors. Over the last three years, the company has maintained a healthy ROE of 21.91% making its stocks an ideal long-term stock to buy for investors.

7. HCL Technologies

HCL Technologies is a renowned Indian IT services firm with a global reach. The firm offers a diverse service portfolio, a large customer base, and a strong emphasis on innovation and digital transformation. 

HCL Technologies has a market cap of Rs 2,86,563 Cr. HCL Technologies stock has shown steady returns over the years. One of the best choices for those seeking exposure to the IT industry. The company’s price/earnings to growth ratio (PEG ratio) is 1.04%. This assists investors in knowing the company’s market price, profits, and future growth possibilities.

8. Hindustan Unilever 

Headquartered in Mumbai, Hindustan Unilever is a 90-year-old India-based company. It is a subsidiary of a British-based company named Unilever. Hindustan Unilever is India’s largest fast-moving consumer goods company (FMCG segment). This places it among the top shares to buy in 2023. 

HUL has a market cap of ₹5,84,108 Cr as of 2023 making it one of the most valuable companies in the world, attracting investors.HUL’s turnover increase of 11% and underlying volume growth of 3% for the fiscal year 2021-22 were well ahead of the market. Its year-on-year market share gain was the biggest HUL had seen in a decade. 

9. Deepak Nitrite 

Founded in the 1970s, Deepak Nitrite is India’s fastest growing Chemical Intermediates Company. With a market cap of Rs 26,626.65 Cr, the company serves 100+ products in numerous industries. 

Moreover, Deepak Nitrite’s profits are predicted to expand by 42% during the next four years, indicating a bright leap for investors. 

10. Ultratech Cements

UltraTech Cement Limited, the Aditya Birla Group’s cement flagship firm, is India’s largest maker of grey cement and ready mix concrete (RMC). The social activities of the company are focused on education, healthcare, sustainable livelihoods, community infrastructure, and social concerns. 

UltraTech serves over 1.6 million people in over 500 villages across 16 states in India. With a market cap of Rs 2,16,407 Cr, for the last three years, the company’s profit has increased by 43.08%. As a result, Ultratech Cements shares are one of the best shares to invest in 2023.

Tips for Choosing the Best Stocks for Long Term Investment

There are a few factors to consider while choosing the best stocks for long-term investment:

1. Revenue Growth

Revenue growth is a critical metric to consider when choosing the best stocks for long-term investment. The growth rate of a company’s revenue helps the investors in determining the ability of that company to generate profit over time. An increasing growth rate indicates that the company is growing its product line/services and customer base. Before finalizing the best stocks investigate the growth rate of the company and compare it with other companies. 

2. Profit Margins 

Profit margin is an important factor in determining how much profit a company makes against quarterly, half-yearly, or yearly sales. A higher profit margin indicates that the company can control its operational costs and generate higher profits. While choosing long-term stocks to buy, consider the company’s net margin, gross margin, etc. Seek advice from a financial advisor for better clarity on profit margins.

3. Debt-to-equity Ratio 

The debt-to-equity (D/E) ratio is an important financial metric when thinking about the best stocks to buy. The D/E ratio is calculated by dividing the company’s total liabilities (debts) by its shareholder’s equity. 

A higher D/E ratio indicates that the company has too much debt and is at risk of default. In contrast, a lower D/E ratio indicates that the company has lower debts than assets (equity), showing a strong financial position. The best stocks for long-term investment is the one with a lower D/E ratio.

4. Industry Trends 

It is necessary to take into account the current and future trends of a company to see if it is the best stock for long-term Investment. Industry trends include competitive landscape, regulatory environment, and technological advancements. For example, if a company has been showing a competitive landscape with a growth rate of 50%, has a regulatory environment and regularly undergoes technological advancements, this company is certain to grow in the future.

5. Dividend Policy 

When investing in the best stocks, a dividend policy is a must to consider. A company that pays regular dividends shows that it is profitable and in good financial shape. On the contrary, a company with irregular dividend payouts indicates that it is not generating regular profits. Thus. long-term investors should look for a firm that has a continuous history of paying dividends.

Also Read: Top 10 Types of Investment: Explore High-Return Investment Opportunities

Choose the Best Stocks for Long-term Investment Wisely

Long-term investing is a crucial aspect of creating wealth, leading to financial stability. Investing for a longer period of 10 years or more has been proven to yield significant returns for investors. Choosing the best stocks for long term investment wisely allows you to create wealth, retire comfortably and even leave an inheritance for future generations. There are various best stocks to invest in India for long term offering attractive returns. However, the best stocks for long-term investment include Kotak Mahindra Bank, HUL, HDFC Bank etc.

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