Top Stocks to Invest for Long Term in the Indian NSE for 2024

The stock market is a great way to build wealth over time. However, it’s important to have a long-term perspective and understand the benefits of investing in stocks for the long haul. Investing in the best stocks to buy for long term investment allows investors to ride out short-term market fluctuations and take advantage of compounding returns. In this article, we’ll discuss long-term stocks to invest in, how to pick them, and a list of best shares to buy for the long term.

Top 10 Stocks to Buy for Long Term in 2024 Based on 5Y Avg Net Profit Margin

When building a solid foundation for your investment portfolio, the key is to focus on long-term investment stocks for 2024. Therefore, let’s look at 10 best shares to buy today for long term.

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data in this long term stocks list, including the long term share prices, is from 3rd September 2024. This data is derived from Tickertape Stock Screener.

• Stock Universe: Nifty 100
• 5Y Net Profit Margin: Sort from highest to lowest
• 5Y Historical Operating Cash Flow: Set to High
• Return on Equity: Set to High
• Debt-to-Equity: Set to Low

Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

Best Long Term Investment Shares: An Overview

Here are brief overviews of the top 10 shares to buy for long term listed above:

Hindustan Unilever Ltd

Hindustan Unilever Limited (HUL) is an Indian FMCG company based in Mumbai and is a subsidiary of the British multinational, Unilever. HUL offers a wide range of products, including foods, beverages, cleaning agents, and personal care items. As of 3rd September 2024, the company had a market capitalisation of Rs. 6,55,312.75 cr., and its share price closed at Rs. 2,794.30. Over the last 5 years, the company’s revenue has grown at a yearly rate of 9.55%, higher than the industry average of 9.52%.

Bajaj Auto Ltd

Bajaj Auto Limited, headquartered in Pune, is an Indian multinational company specialising in manufacturing motorcycles, scooters, and auto rickshaws. Jamnalal Bajaj founded the company in the 1940s and is a key part of the Bajaj Group, a prominent Indian business conglomerate. As of 3rd September 2024, the company had a market capitalisation of Rs. 3,10,704.81 cr., and its share price closed at Rs. 11,043.65. Over the last 5 years, the company’s revenue has grown at a yearly rate of 7.53%, higher than the industry average of 7.44%, and its net income has grown at a yearly rate of 9.36%, also higher than the industry average of 7.87%.

Bharat Electronics Ltd

Bharat Electronics Limited (BEL), founded in 1954, is a Navratna Public Sector Undertaking with a strong presence in India’s defence sector. The company specialises in designing, developing, manufacturing, supplying, and providing life cycle support for a range of strategic electronic products and systems. As of 3rd September 2024, the company had a market capitalisation of Rs. 2,17,027.33 cr., and its share price closed at Rs. 297.15. Over the last 5 years, the company’s revenue has grown at a yearly rate of 11.34%, higher than the industry average of 11.25%.

Zydus Lifesciences Ltd

Zydus Lifesciences Ltd., previously known as Cadila Healthcare Ltd., is a leading pharmaceutical company in India focused on innovation. The company operates across the entire pharmaceutical value chain, from research and development to manufacturing, marketing, and sales. As of 3rd September 2024, the company had a market capitalisation of Rs. 1,11,847.94 cr., and its share price closed at Rs. 1,111.55. Over the last 5 years, the company’s net income has grown at a yearly rate of 15.86%, higher than the industry average of 15.16%.

HCL Technologies Ltd

HCL Technologies Limited is a global leader in IT services, specialising in digital transformation for businesses worldwide. The company offers a broad range of services, including software development, business process outsourcing, and infrastructure management. As of 3rd September 2024, the company had a market capitalisation of Rs. 4,88,903.56 cr., and its share price closed at Rs. 1,790.45. Over the last 5 years, the company’s revenue has grown at a yearly rate of 12.67%, higher than the industry average of 11.54%, and its market share increased from 13% to 14.24%.

LTIMindtree Ltd

Larsen & Toubro Infotech Limited (L&T Infotech) is a global technology consulting and digital solutions company that supports over 728 clients worldwide. Founded in 1997 as a subsidiary of Larsen & Toubro Limited, the company provides a wide range of IT services. As of 3rd September, the company had a market capitalisation of Rs. 1,82,194.52 cr., and its share price closed at Rs. 6,145.70. Over the last 5 years, the company’s revenue has grown at a yearly rate of 30.02%, higher than the industry average of 11.54%, and its market share increased from 2.06% to 4.63%. 

Pidilite Industries Ltd

Pidilite Industries Limited (PIL), established on 28th July 1969, is a consumer and speciality chemicals company. It operates in two main segments: Branded Consumer & Bazaar and Business to Business (B2B). As of 3rd September 2024, the company had a market capitalisation of Rs. 1,60,833.76 cr., and its share price closed at Rs. 3,173.55. Over the last 5 years, the company’s revenue has grown at a yearly rate of 11.62%, higher than the industry average of 10.8%, and its market share increased from 11.26% to 11.65%.

Sun Pharmaceutical Industries Ltd

Sun Pharmaceutical Industries Limited, along with its subsidiaries and associates (Sun Pharma), is the fourth-largest speciality generic company globally. It holds the top position in India and ranks eighth in the United States, making it the largest Indian pharmaceutical company in the US and a prominent player in emerging markets. As of 3rd September 2024, the company had a market capitalisation of Rs. 4,35,707.23 cr., and its share price closed at Rs. 1,811.50. Over the last 5 years, the company’s revenue has grown at a yearly rate of 10.64%, higher than the industry average of 9.21%, and its net income has grown at a yearly rate of 29.15%, also higher than the industry average of 15.16%.

Berger Paints India Ltd

Berger Paints India Ltd is the country’s second-largest paint company, involved in manufacturing and selling paints, varnishes, and enamels for various uses. The company provides a range of innovative painting solutions for both decorative and industrial applications. As of 3rd September 2024, the company had a market capitalisation of Rs. 67,161.51 cr., and its share price closed at Rs. 576.80. Over the last 5 years, the company’s revenue has grown at a yearly rate of 13.05%, higher than the industry average of 12.71%, and its market share increased from 19.26% to 19.55%. 

Hero MotoCorp Ltd

Hero MotoCorp Limited is the world’s largest two-wheeler manufacturer. It produces and sells motorised two-wheelers, spare parts, and related services. The company has a production capacity of over 9.50 million vehicles annually, with eight manufacturing facilities—six in India and one each in Colombia and Bangladesh. As of 3rd September 2024, the company had a market capitalisation of Rs. 1,11,552.91 cr., and its share price closed at Rs. 5,646.50. Over the last 5 years, the company’s debt-to-equity ratio has been 3.49%, lower than the industry average of 27.75%.

Investing in Long Term Investment Stocks via smallcase

Did you know that you can invest in readymade long term stock portfolios managed by SEBI-registered experts? Yes, that’s right. 

smallcases are modern investment products that help investors easily build low-cost, long-term & diversified portfolios. At smallcase, you can easily track and invest in specific sectors by diversifying your portfolio across different asset classes, market segments and capitalisations.

What are Long Term Investment Stocks?

Long term investment stocks mean investing in companies with strong fundamentals and growth potential that are held for several years. These long term investment stocks are different from short-term stocks because the latter are typically bought and sold quickly to make a short profit. Thus, the long-term investing strategy involves buying and holding long-term investment stocks that are focused on the company’s long-term growth prospects and fundamentals.

How to Invest in Stocks for Long Term?

There are several ways to invest in the best shares to invest for long term, including buying individual stocks, mutual funds, and exchange-traded funds(ETFs). Buying individual stocks allows investors to handpick their holdings, but carries a higher level of risk. Mutual funds and ETFs provide diversification and lower risk but may offer different potential for high returns. Investors should choose the best long term stocks to buy that best align with their investment goals and risk tolerance. Here is how investors can invest in long term stocks to invest in India:

1. Open a Demat/Trading/Brokerage account. Investors can open a demat sccount with smallcase.

2. Conduct thorough research into the stocks that may seem suitable to you for the leng term. Investors can utilise the Tickertape Stocks Screener to research the past performance of the long term stocks, using the 200+ filters available.  

3. Place a ‘Buy’ order on the long term stocks of your choosing. 

4. Monitor your investments regularly. 

Note: Investors should conduct thorough research of their own and consult a financial advisor before investing. 

Why Invest in Long Term Stocks in India?

Investing in the best Indian stocks for the long term offers multiple benefits. It provides the potential for returns to grow over time and allows you to capitalise on India’s expanding economy. Investing in a diverse range of industries and established companies with strong track records can also help manage short-term market fluctuations. Additionally, some stocks may offer the opportunity for regular monthly dividends. By investing in the top long term investment stocks, you can tap into the country’s growth potential, supported by a rising middle class and increasing consumer spending, which can lead to steady returns over the long term.

How to Pick Stocks for Long-Term in India?

When selecting which share to buy for long term, it’s important to consider various factors. Here are a few key considerations that may help investors determine which shares to buy for long term:

• Company Financials: Investors can look for companies with strong financials, including a healthy balance sheet, positive cash flow, and solid earnings growth.
• Management Team: A strong management team with a track record of success can help ensure the company’s well-being, and you can consider it one of the long-term investment stocks.
• Competitive Advantage: You can consider buying long term shares to buy in India that have a competitive advantage, such as a strong brand, unique product, or proprietary technology.
• Market Trends: Investors can search for the best stock for long term in India that are well-positioned to capitalise on market trends, such as the transition towards renewable energy or the expansion of e-commerce.

Risks of Investing in Long Term Investment Stocks

While many praise long-term investment stocks for their potential to yield substantial returns over extended periods, one might encounter certain challenges, such as:

• Volatility: Investing in the stock market can be volatile. Stock prices of even the best stock to invest for long term can fluctuate based on market conditions, economic indicators, and company-specific news.
• Lack of Liquidity: When you invest in the best share to buy for long term in India, you’re tying up your money in an asset that may be challenging to sell quickly. If you need access to your money in the short-term, there may be better options than long term shares to invest in India.
• Company-specific Risks: Investing in a single company’s stock exposes you to company-specific risks, such as poor management, legal issues, or competitive threats. Even the best stocks to invest for long term are susceptible to these risks. 

Advantages of Long Term Investment Stocks

Let’s look at the promising benefits of investing in long term investment stocks. 

• Potential for Higher Returns: Historically, the share market has provided higher returns in the long term compared to other asset classes such as bonds, cash, and real estate.
• Time in the Market, Not Timing the Market:  Trying to time the market can take time and effort. When investing in the best long time investment shares, you don’t have to worry about timing the market or short-term fluctuations.
• Lower Taxes: Long-term capital gains tax rates are lower than short-term capital gains tax rates. Therefore, if you hold onto a long term stock investment for more than one year before selling it, you’ll pay a lower tax rate on any gains.
• Compounding: Long term stocks to buy in India allow you to take advantage of compounding. Thus, the longer you hold onto a stock to buy for long term, the more time it has to grow and increase in value. Resulting in significant gains over time.

Strategies to Select the Best Stock for Long Term Investment

Investors can explore the following strategies to understand which stocks to buy for long term:

• Avoid Blindly Following Market Tips: Refrain from blindly acting on stock market tips, no matter how credible the source. Thoroughly research and analyse the best shares to buy for long term before making decisions. While some tips may yield significant benefits, others pose the risk of substantial losses.
• Remove Underperforming Stocks from Your Portfolio: Recognise that a stock’s previous decline may not guarantee a future rise. It can be helpful to be realistic about market possibilities and promptly sell underperforming long term share investments in your portfolio to mitigate further losses. Pragmatic decision-making is crucial while investing in the best shares for long term investment.
• Manage Your Investment Budget Wisely: The best share for long term investment can be favourable. You should avoid hastily exceeding your investment budget. Allocate a fixed amount across diverse high-performing stocks instead of concentrating on one. Diversify your investments strategically to safeguard against undue risks and enhance long-term growth prospects.
• Adopt and Stick to Your Investment Strategy: Choose a reliable investment strategy aligned with your goals before investing in the best share to invest for long term.  Conduct thorough fundamental and technical analyses, utilise stock screeners, and make informed decisions. A disciplined approach enhances your ability to select the top shares to buy for long term success.

Who Should Invest in Long Term Stocks in India?

Investing in long-term stocks can be advantageous for various individuals. Here are five key groups who might benefit from this strategy:

Young Professionals and New Investors

Young professionals and beginners have time on their side, making long-term investing particularly beneficial. Starting early allows them to take advantage of compounding, navigate market fluctuations, and benefit from long-term market growth.

Middle-Aged Individuals and Parents

Middle-aged individuals and parents saving for future needs can also gain from long-term investments. Diversifying with the best stocks for long term investments helps balance growth and security, building substantial funds for retirement or children’s education.

Retirees and Conservative Investors

Retirees and those favouring stability often seek investments that provide steady income. Companies with consistent earnings and regular dividends, such as blue-chip stocks, offer reliable returns and inflation protection.

Aggressive Investors and Entrepreneurs

Those looking for high returns, including aggressive investors and entrepreneurs, may target growth stocks in emerging sectors. Investing in these rapidly growing industries can lead to significant gains from innovation and expansion.

High-Net-Worth Individuals and Institutional Investors

High-net-worth individuals and institutions, like pension funds and insurance companies, seek stable, high-performing stocks to ensure consistent returns. A well-chosen selection of the best shares to buy in India for long term can offer a balance of growth and stability.

Factors to Consider Before Investing in Long Term Investment Stocks

Several factors can affect the best stocks in India for long term. These factors affecting the long term investment in share market include: 

• Financial Performance: Evaluate the company’s revenue growth trends, profitability metrics like net income and operating margins, and cash flow to ensure a healthy business.
• Growth Potential: When considering the best stocks to invest in India for long term, investors can look for companies that drive innovation and growth. A company that doesn’t build full-proof products backed by recent technology and innovation is bound to lose compared to the one that does. 
• Macroeconomic Factors: Investors can consider macroeconomic factors like interest rates and inflation that may impact the performance of even the best shares to invest in India for long term. 
• Transparency: Check if the company is transparent in its disclosures. Investors should avoid investing in businesses that lack proper and sufficient disclosures, especially concerning related party transactions.

To Wrap It Up…

Long term investment stocks are a great way to build wealth over time, but it requires patience and a long-term perspective. By selecting strong companies with a proven track record of growth and diversifying holdings, investors can minimise risk and take advantage of long-term trends. It’s never too late to start investing in shares for long term, and with careful research and planning, anyone can build a successful long-term investment portfolio.

Frequently Asked Questions on Long Term Investment Stocks