Best Stocks to Buy for Long Term Investment in India
When it comes to Buying shares of a company / investing in stocks, it is always to be done keeping Long term view and important to choose Best Stocks to Buy for Long Term Investment in India. How to find these Best Stocks to Buy for Long Term Investment in India? When you must consider selling these Best Stocks to Buy for Long Term Investment in India? How many stocks you must hold for long term investment? which are the stocks to buy now for Long term Investment? Read here
Before we move on, Let me explain How NOT to select stocks for Long Term Investment
Advice or recommendations received from Demat Brokers, News based stocks, Technical Chart based stocks should be strictly avoided as they are mainly concentrating on their own profits for brokerages. You may read more about Worst stocks you should never try to invest? Do you hold these Time Bombs in your Portfolio?
How to find Best Stocks to Buy for Long Term Investment in India
Finding the best stocks for Long term investment is perhaps not as difficult as many thinks, or many research reports say, We need not look for complicated calculations, No need to have knowledge on seeing Technical Charts etc.
As an investor, one must look for buying company which has the following
- Companies must be generating consistent profits
- Investment worth Companies must have high importance to Corporate Governance
- These companies chosen for investment for the Long term have Very Low Debt/Loans or Zero Debt.
- These Best companies are cash machines, they generate high cash through their business.
- Asset light model companies means Best Stocks to Buy for Long Term Investment in India which has very limited assets costs to generate high profits.
- These best stocks are having major qualities covered in Top Monopoly stocks in India?
- Best Stocks are having future prospects intact without having any visible problems as mentioned in Worst stocks you should never try to invest?
- These best companies to invest are having strong customer focused approach
- Best Stocks to Buy for Long Term Investment are market leaders in their respective field of business with above qualities.
What are the Best Stocks to Buy for Long Term Investment in India – 2019
#1 Best Stock to Buy for Long Term – – Sasken Technologies – CMP Rs. 743
Sasken Technologies is a technology company with robust growth and healthy cash in Hand. As per recent declared Quarterly and Yearly results of Mar 2019, Sasken Technologies are having huge cash in their balance sheet, This is almost 40% of its current market price, This gives comfortable protection to the downside risk of stock price correction.
Sasken Technologies is one of the Best Stocks to Buy for Long Term Investment in India – 2019
Overview: Sasken Technologies is a major market player in Digital space with a wide range of services and Hardware company. Their major products are software design, internet of things(IoT), Smart Devices for Manufacturing an construction industries, satellite phones etc. Sasken Technologies is part of the global engineering research & development (ER&D) industry. You may read more about this undervalued stock for investment here Sasken Technologies
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#2 Best Stock to Buy for Long Term – India Energy Exchange (IEX) – CMP 159
India Energy Exchange (IEX) is one of the Monopoly companies in India with high-profit margins, the Business expansion looks very promising, IEX aims to scale up to multi folds in coming years, India Energy Exchange (IEX) is an asset-light company with mainly works on software for Power exchange with very huge potential market ahead.
The stock India Energy Exchange (IEX) is currently available for attractive evaluations, This is one of the Best Stocks to Buy for Long Term Investment in India – 2019.
Overview of India Energy Exchange (IEX)
IEX business model is similar to BSE/NSE in the stock market matters, IEX deal with Electrical Power Trading in their platform. IEX platforms allow their users to trade Power just like Shares in BSE/NSE. People who want power and People who wish to sell Power will trade through this Exchange and IEX keep their commission from both ends.
How the IEX business Model works for Power: Many Power Generating companies will have an agreement with state electricity boards for selling generated power, In many cases it happens that Power Generating companies will generate more power than what is agreed to sell to Electricity boards, in such cases the excess power available at these companies can be sold to buyers who are in short term needs say 1 day for example. This buying and selling of excess power are done at the India Energy Exchange (IEX).
Going forward, IEX is in the advance planning stage of launching Gas exchange which works exactly the same as Power exchange, once that happens IEX will be able to maximize returns multifold with the same resources. Hope this qualifies to be in the list of Best Stocks to Buy for Long Term Investment in India – 2019. You may read more about this undervalued stock for investment here India Energy Exchange (IEX).
#3 Best Stock to Buy for Long Term – Vardhman Textiles CMP -1124
Vardhman Textiles enjoys a high market share in India and exports business of cotton yarns and fabrics. Their profits and revenues are growing high, They have high corporate governance principles. They are having cash for future expansion without having to take any major loans.
Vardhman Textiles is my pick for Best Stocks to Buy for Long Term Investment in India.
Overview: Vardhman Textiles is an industry leader in supplying fabrics and Yarn to many famous textile companies like H&M, Tommy Hilfiger, Gap, Benetton, Arrow, Peter England, Van Heusen etc. They have a very high customer base with health revenues. The main reason for choosing this stock in Best Stocks to Buy for Long Term Investment in India – 2019 is Vardhman Textiles is a largest producer and exporter of Yarns in India, Their market share of exports to Japan is very high and overall their factories run at full capacity. You may read more about this undervalued stock for investment here Vardhman Textiles
#4 Best Stock to Buy for Long Term – Ashiana Housing CMP – 115
Ashiana Housing is a reputed real estate builder company, in the recent past, Many real estate developers have failed to come up due to high Debt and Loans with many delays in execution. However, Ashiana Housing has managed to make reasonable profits even in tough times.
Their Quality and Timely delivery are major reasons for many Home Buyers to prefer Ashiana Housing over others. Ashiana Housing is having healthy Growth of Revenues and High profits of over 30%.
Management is having long term plans for the company to move ahead of the competition. Ashiana Housing makes land purchases with their own money or with their customer advance money, They generally won’t go for buying land with Debt/ Loans. Because of this reason of Low debt ad asset-light model, even in tough times of industry slow down, Ashiana Housing has not seen any shocks.
This makes the stocks to be in Best Stocks to Buy for Long Term Investment in India – 2019. Ashiana Housing Debt is very negligible of just around 10% of its equity as per recent results.
Overview of Ashiana Housing
Name by itself a Safe Heaven 🙂 Ashiana Housing is major reputed builders in the industry without any delay in execution of projects, Quality player in real estate, Transparent pricing model, Direct sales, Ashiana Housing will sell their flats y their own marketing without any middle person or brokers, Ashiana Housing executes their projects by their own team of Construction. this is very rare in the real estate industry. Ashiana Housing has delivered all their promises over time, all their customers are happy in the market.
All these qualities make Ashiana Housing a better choice for any person who wishes to buy a house. All their flats are being sold/booked very fast after launch, they are dominat in Low-cost affordable housing segment which is having very high demand in the market.
Ashiana Housing is in Best Stocks to Buy for Long Term Investment in India – 2019 and Ashiana Housing is available at an attractive price now. You may read more about this undervalued stock for investment here Ashiana Housing
#5 Best Stock to Buy for Long Term – ITC Ltd. CMP – 304
ITC Ltd. with a wide range of products it has started the journey as Cigarettes business and now caters almost every FMCG product.
ITC is into the business of Cigarettes, FMCG products, Hotels among others. Their revenues are growing high, due to diversification into a wide area of businesses it is able to perform better, ITC is said to be a Defensive stock in Indian Market, it may not go wrong even in tough times of markets.
ITC Ltd. is one of the Best Stocks to Buy for Long Term Investment in India – 2019 and is also part of Top Monopoly stocks in India
When to Sell these Stocks
I do not believe in Target based selling as most of the brokerage firms will tempt you to do to so for their minor benefit of brokerage charges.
How a Best stock has become invalid just by reaching a number in your mind? It simply won’t work. Having Sell by just reaching time target or Price target is just for Short term traders and it won’t suit for Long term investments. The Best stock is worth holding in your portfolio even if the price moves multi-folds,
For Example, HDFC Bank is a Great company to invest for the long term, assume if one has invested Rs. 5 Lac in this HDFC Bank during November 2000, Then the current price of the same shares will be around Rs. 2 Cr today. We must not miss out in any of such opportunities when investing in stocks.
You can sell Stocks only when you feel your decision is wrong, not because you have gained well.
I Personally keep No stop loss, all my investment in that particular stock is a stop loss for me, even if one stock fails others will make over over long term.
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Conclusion: How to buy these Best Stocks to Buy for Long Term Investment in India – 2019
As you may be aware, Stock market is always volatile and is not predictable by anyone, but with minor care and study, we can at least understand their business model before investing in any stock instead of blindly following a broker or a recommendation received.
we must always invest in a Business which has services / Products in your knowledge, in case if any of your understanding goes wrong you can exit them.
Invest in companies to make profits not in the short term, but with long term horizon.
You must invest in Best Stocks to Buy for Long Term Investment in India only if you feel happy about investing in companies, only if you wish to be part owner in these companies. All their profits are yours for your portion of the investment.
Review of these Best Stocks to Buy for Long Term Investment in India – 2019
I have added all these stocks in a sample portfolio, just to check the performance over the period of time. Below is the snapshot with an investment of Rs.10,000/- in each of the above mentioned best stocks.
We shall review these next month and add more stocks as necessary at that time, Pease subscribe to get notified on the development on these stock performance in your email.
Summary of Best Stocks to Buy for Long Term Investment in India
- Sasken Technologies : – CMP Rs. 743
- India Energy Exchange (IEX) – CMP 159
- Vardhman Textiles CMP -1124
- Ashiana Housing CMP – 115
- ITC Ltd. CMP – 304
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