Long Term Stocks – Best Long Term Stocks

Long-term stocks are investments held for an extended period, typically more than a year. Investors buy these stocks with the expectation of steady growth over time. Holding long-term stocks can lead to higher returns through capital appreciation and dividends while minimizing the impact of short-term market fluctuations.

The table below shows the best long term stocks based on the highest market capitalisation and 1-year return.

Introduction To Long Term Stocks In India

Adani Green Energy Ltd

The Market Cap of Adani Green Energy Ltd is Rs. 317,432.19 crores. The stock’s monthly return is 3.04%. Its one-year return is 98.62%. The stock is currently 8.49% away from its 52-week high.

Adani Green Energy Ltd (AGEL), an Indian holding company, is involved in renewable energy generation and related activities. It specializes in developing, constructing, owning, operating, and maintaining large-scale solar power, wind power, hybrid projects, and solar parks that are connected to the grid. 

The company operates in various markets within India, spanning across approximately 91 locations in different states. AGEL’s power projects are primarily situated in Gujarat Punjab, Rajasthan, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh. Its wind power plants are located in Madhya Pradesh and Gujarat.  

CG Power and Industrial Solutions Ltd

The Market Cap of CG Power and Industrial Solutions Ltd is Rs. 114,101.64 crores. The stock’s monthly return is 3.37%. Its one-year return is 72.96%. The stock is currently 4.99% away from its 52-week high.

CG Power and Industrial Solutions Limited is a company based in India offering comprehensive solutions for the management and use of electrical energy to utilities, industries, and consumers. 

The company is divided into two segments: Power Systems and Industrial Systems. The Power Systems segment focuses on the production of electric equipment for the power and industrial sectors, such as transformers, reactors, and switchgear products, and provides turnkey solutions for power distribution and generation. The Industrial Systems segment specializes in manufacturing and selling power conversion equipment for various industrial applications, including medium and low-voltage rotating machines, drives, and stampings.  

Lloyds Metals And Energy Ltd

The Market Cap of Lloyds Metals and Energy Ltd is Rs. 42,899.88 crores. The stock’s monthly return is 6.90%. Its one-year return is 52.41%. The stock is 0.82% away from its 52-week high.

Lloyds Metals and Energy Limited, an India-based company, is involved in iron ore mining, sponge iron manufacturing, and power generation. The company operates in three main segments: Sponge Iron, Mining, and Power. The Sponge Iron segment focuses on producing and manufacturing sponge iron, while the Mining segment is responsible for extracting iron ore from mines. The Power segment is dedicated to power generation. 

The company’s by-products consist of char, fly ash, bed materials, ESP dust, and iron ore fines. Its iron ore deposit primarily comprises hematite and goethite ore, along with secondary derivatives like limonite and lepidocrocite. Lloyds Metals and Energy Limited is a coal-based sponge iron manufacturer in Maharashtra, with an annual production capacity of approximately 270,000 tons, and a captive power plant with a capacity of 30 megawatts.  

Authum Investment & Infrastructure Ltd

The Market Cap of Authum Investment & Infrastructure Ltd is Rs. 28,707.22 crores. The stock’s monthly return is 17.57%. Its one-year return is 277.28%. The stock is 8.27% away from its 52-week high.

Authum Investment & Infrastructure Limited, an India-based non-banking finance company (NBFC), focuses on investing in shares and securities. The company primarily engages in investment and lending activities, including investments in publicly listed and unlisted companies, private equity, real estate, and debt instruments.

Additionally, it offers structured financing, fixed returns portfolios, secured lending, and equity investments in emerging companies. Its wholly-owned subsidiary is Reliance Commercial Finance Limited.

PTC Industries Ltd

The Market Cap of PTC Industries Ltd is Rs. 20,584.71 crores. The stock’s monthly return is 1.34%. Its one-year return is 139.35%. The stock is 14.20% away from its 52-week high.

PTC Industries Limited specializes in the production and sale of high-precision metal castings for a variety of industries such as aerospace, defense, oil and gas, LNG, marine, valves, power plants, pulp and paper, and mining. 

The company offers a wide selection of materials including alloy steel, stainless steel, duplex stainless steel, super duplex stainless steel, creep-resistant steel, and others. They are involved in producing aerospace, industrial, titanium, and vacuum melt alloy castings, as well as focusing on powder metallurgy and precise CNC machining.  

Jai Balaji Industries Ltd

The Market Cap of Jai Balaji Industries Ltd is Rs. 20,360.54 crores. The stock’s monthly return is 18.00%. Its one-year return is 184.32%. The stock is 17.75% away from its 52-week high.

Jai Balaji Industries Limited specializes in manufacturing iron and steel products. Its product range includes sponge iron, pig iron, ductile iron pipes, ferrochrome, billets, thermo mechanically treated (TMT) bars, coke, and sinter, supported by a captive power plant. 

The company operates eight integrated steel manufacturing units across West Bengal, Chhattisgarh, Orissa, and Jharkhand. It offers a diverse portfolio of value-added products such as DRI (sponge iron), pig iron, ferro alloys, alloy and mild steel billets, reinforcement steel TMT bars, wire rods, ductile iron pipes, and alloy and mild steel heavy rounds, with a total capacity exceeding 27,40,000 tons per annum.  

Waaree Renewable Technologies Ltd

The Market Cap of Waaree Renewable Technologies Ltd is Rs. 18,802.96 crores. The stock’s monthly return is 13.60%. Over the course of one year, the stock has returned 634.79%. Currently, the stock is 68.30% away from its 52-week high.

Waaree Renewable Technologies Limited is an Indian company specializing in engineering, procurement, and construction (EPC) services for the renewable energy industry. The company focuses on solar projects and the generation of clean energy from renewable sources. 

They are involved in financing, building, owning, and operating solar projects, both on-site and off-site. Their services include various solar solutions such as rooftop, floating, and ground-mounted systems, as well as models like capex and renewable energy service company (RESCO).  

Gravita India Ltd

The Market Cap of Gravita India Ltd is Rs. 16,853.33 crores. The stock’s monthly return is 5.77%. Its one-year return is 202.17%. The stock is 9.00% away from its 52-week high.

Gravita India Limited is involved in the processing of lead and aluminum, trading in lead products and aluminum scrap, and executing turn-key lead recycling projects. The company is divided into segments such as Lead processing, Aluminum processing, Turn-key solutions, and Plastic manufacturing. 

Within the Lead processing segment, the company conducts smelting of lead battery scrap and lead concentrate to create secondary lead metal, which is then refined into pure lead, specific lead alloy, lead oxides (like lead sub-oxide, red lead, and litharge), and various lead products such as lead sheets, lead powder, and lead shot. In the Aluminum processing segment, the company trades in taint tabor and tense aluminum scraps and manufactures alloys by melting aluminum scrap.  

PG Electroplast Ltd

The Market Cap of PG Electroplast Ltd is Rs. 16,051.03 crores. The stock’s monthly return is 16.80%. Its one-year return is 238.67%. The stock is 5.62% away from its 52-week high.

PG Electroplast Limited is a provider of electronic manufacturing services (EMS) in India for original equipment manufacturers (OEMs) of consumer electronic products. The company is involved in manufacturing consumer durables, which encompass various divisions such as molding, electronics, complete products, paint shop, thermoset, and tooling. 

Within the molding division, the company produces parts for air-conditioners, air coolers, washing machines, refrigerators, ceiling fan parts, automobile components, and sanitary ware products. The electronics division focuses on Printed circuit board assemblies for LED lights, televisions, and set-top boxes.  

Elecon Engineering Company Ltd

The Market Cap of Elecon Engineering Company Ltd is Rs. 14,274.08 crores. The stock’s monthly return is 2.14%. Its one-year return is 74.19%. The stock is currently 12.68% away from its 52-week high.

Elecon Engineering Company Limited is an India-based company specializing in the design and manufacture of material handling equipment and industrial gear, as well as offering erection and commissioning services for its products. The company operates through two main segments: Material Handling Equipment and Transmission Equipment. 

In the Material Handling Equipment segment, Elecon produces systems such as raw material handling systems, stackers, reclaimers, bagging and weighing machines, wagon and truck loaders, crushers, wagon tipplers, feeders, and port equipment. Additionally, the company undertakes projects related to these products. 

What Are Long Term Stocks?

Long-term stocks refer to shares of companies that investors intend to hold for an extended period, typically several years or even decades. These investments are made with the expectation that the company’s value will appreciate over time, leading to significant returns.  

Investors often seek long-term stocks for various reasons, including the potential for capital appreciation and dividends. Holding stocks for the long term can also help mitigate market volatility, as short-term price fluctuations may become less relevant when evaluated over prolonged periods.

Features Of Long Term Stocks

The key features of long-term stocks include steady growth potential, as they are held for extended periods, allowing investors to benefit from compounding returns and ride out short-term market volatility for more stable, long-term gains.

1. Capital Appreciation: Long-term stocks often experience significant price appreciation over time, enabling investors to generate substantial returns on their investments as the companies grow and expand their market presence.
2. Dividend Income: Many long-term stocks offer regular dividend payments, providing a consistent income stream. This adds to the overall returns and can be reinvested for compounding growth, boosting long-term wealth creation.
3. Lower Taxation: Holding stocks for over a year often qualifies for lower capital gains taxes, helping investors retain more of their profits compared to short-term trades, which are taxed at higher rates.
4. Reduced Volatility: Long-term investments are less affected by short-term market fluctuations. The extended holding period allows investors to withstand temporary market dips and focus on overall growth trends.
5. Compounding Returns: Long-term stocks benefit from the power of compounding, as reinvested dividends and gains multiply over time, exponentially increasing the overall returns on investment.

Best Long Term Stocks Based On 6 Month Return

The table below shows the best long term stocks based on a 6-month return.

Top Long Term Stocks In India Based On 5 Year Net Profit Margin

The table below shows the top long term stocks in India based on 5-year net profit margin.

Best Long Term Stocks Based On 1M Return

The table below shows the best long term stocks based on a 1-month return.

High Dividend Yield in Long Term Stocks In India

The table below shows the high dividend yield in long term stocks in India.

Historical Performance Of Best Long Term Stocks In India

The table below shows the historical performance of best long term stocks in India based on 5-year CAGR.

Factors To Consider When Investing In Long Term Stocks India

The factor to consider when investing in long-term stocks in India is the company’s financial health. Strong balance sheets, consistent revenue growth, and profitability ensure that the company can sustain growth and weather economic downturns.

1. Market Position: Companies with a strong competitive advantage and market leadership are more likely to grow over the long term. Assess their industry standing, market share, and ability to innovate to stay ahead.
2. Management Quality: The experience and track record of a company’s management team are crucial. Strong leadership drives strategic decisions, efficient operations, and long-term profitability, making it a key factor for sustainable growth.
3. Economic Moat: Companies with a wide economic moat, or competitive advantage, can fend off competitors and maintain profitability over time. This includes factors like brand strength, cost advantages, and regulatory barriers.
4. Industry Trends: Consider long-term industry trends, such as technological advancements, consumer behavior, and regulatory changes. Companies aligned with growing industries are better positioned for sustained success in the long term.
5. Valuation: Invest in stocks that are reasonably valued relative to their earnings potential. Overpaying for a stock can limit future returns, so use valuation metrics like P/E ratio and price-to-book value to assess fair pricing.

How To Invest In Best Long Term Stocks?

Investing in the best long-term stocks involves thorough research and strategy. Start by evaluating companies with strong fundamentals, consistent earnings growth, and a competitive edge. Diversify your portfolio across various sectors to mitigate risks. Utilize resources such as expert analysis and market trends. Platforms like Alice Blue can simplify your investment process.  

Impact Of Market Trends On Long Term Stocks

Market trends play a significant role in shaping the performance of long-term stocks. Positive trends, such as industry growth or technological advancements, can boost the stock prices of companies well-positioned to capitalize on these changes, leading to higher returns for long-term investors.

On the other hand, negative market trends like economic downturns or regulatory shifts can temporarily hurt stock prices, even for fundamentally strong companies. However, long-term investors can often ride out these fluctuations and benefit from recovery over time.

Overall, understanding and aligning investments with favorable market trends can enhance long-term stock performance.

How Long Term Stocks Perform in Economic Downturns?

How do long-term stocks behave during economic downturns? Historically, these investments tend to show resilience despite short-term volatility. When the market faces a recession, many companies may experience temporary declines in earnings and stock prices. However, those with strong fundamentals often bounce back as the economy recovers, providing an opportunity for significant long-term gains.  

Investors typically find that maintaining a long-term perspective during economic hardships can be beneficial. By focusing on the potential for recovery rather than immediate losses, they can capitalize on lower stock prices and benefit from market rebounds over time.

Benefits Of Best Long Term Stocks

The primary benefit of investing in the best long-term stocks is the potential for compounded returns. As stocks grow over time, reinvested earnings and dividends can significantly increase an investor’s overall wealth.

1. Capital Growth: Long-term stocks offer significant capital appreciation as companies grow and expand. Holding these stocks over time allows investors to benefit from rising stock prices and increasing market valuations.
2. Dividend Income: Many long-term stocks provide regular dividends, offering a steady income stream. These dividends can be reinvested to generate additional returns, further enhancing long-term wealth creation.
3. Tax Efficiency: Holding stocks for an extended period qualifies for favorable long-term capital gains tax rates, reducing the tax burden on investment profits and allowing investors to keep more of their earnings.
4. Reduced Risk: Long-term investments help mitigate short-term market volatility. Over time, temporary market fluctuations tend to even out, reducing the overall risk compared to short-term trading strategies.
5. Compounding Returns: The power of compounding significantly boosts returns in long-term stocks. By reinvesting dividends and profits, investors can achieve exponential growth, maximizing their potential wealth over an extended period.

Risks Of Investing In Long Term Stocks

The main risk of investing in long-term stocks is market volatility. Over time, stock prices can fluctuate due to economic changes, industry disruptions, or global events, potentially reducing the value of an investor’s portfolio.

1. Company-Specific Risks: Individual companies may face challenges such as poor management decisions, declining market share, or regulatory issues, which can impact long-term performance and lead to significant losses for investors.
2. Economic Downturns: Recessions or prolonged economic slowdowns can negatively affect the stock market. Even fundamentally strong companies may experience a decline in stock prices during economic downturns, impacting long-term returns.
3. Industry Disruptions: Technological advancements or shifts in consumer preferences can disrupt entire industries. Investors in long-term stocks risk losing value if the companies they hold fail to adapt to these changes.
4. Inflation Risk: Over the long term, inflation can erode the purchasing power of investment returns. If stock returns don’t outpace inflation, the real value of an investor’s gains may diminish.
5. Liquidity Risk: Some long-term stocks may have low trading volumes, making it difficult to sell shares quickly without impacting the stock price, especially during periods of market stress or company-specific troubles.

Long Term Stocks GDP Contribution

Long-term stocks contribute to GDP growth by providing capital to companies for expansion, innovation, and job creation. When investors buy long-term stocks, they support businesses in raising funds for large-scale projects and improvements, which drives economic activity and boosts productivity.

As companies grow, they generate more revenue, pay higher taxes, and employ more workers, all of which contribute to the country’s economic output. Additionally, long-term investments in successful companies can lead to higher consumer spending and investment returns, further fueling GDP growth in the long run.

Who Should Invest In Long Term Stocks?

Investing in long-term stocks is ideal for individuals seeking to build wealth over time and who can tolerate market fluctuations. It suits those with a patient approach, aiming for steady growth rather than quick returns.

1. Retirement Planners: Individuals saving for retirement can benefit from long-term stocks, as they allow for compounded growth over decades, helping to secure financial stability in later life.
2. Wealth Builders: People looking to gradually increase their wealth over time should invest in long-term stocks, which can provide significant returns as companies grow and reinvest earnings.
3. Risk-Tolerant Investors: Those who can handle market volatility and are willing to wait through downturns can benefit from the eventual growth that long-term stocks offer.
4. Young Investors: Younger individuals with time on their side should consider long-term investments, as they can afford to ride out market fluctuations and capitalize on long-term growth trends.
5. Dividend Seekers: Investors seeking regular income can invest in long-term stocks that offer consistent dividend payments, which can be reinvested or used as a steady source of cash flow.

FAQs – Best Long Term Stocks In India

We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.