Best Shares to Buy for Long Term Investment

Best shares to buy for long term investment

Stock Recommendations
by 5paisa Research Team Last Updated: 2022-08-25T17:23:13+05:30

Long-term investments are ones that yield a greater return after a specified number of years. For tax reasons, keeping assets such as mutual funds or equities for more than a year is considered long-term. Even while a year may seem like a considerable amount of time, it is not sufficient for making a long-term investment. Typically, long-term investments are those with a span of 5 or 10 years.

Now, that we are clear on what long-term investment is, let us look at some best shares to buy for long term investments. Allow us to remind you that when choosing these stocks, we took into consideration aspects such as:

1) Market Capitalisation should be a minimum of Rs.20,000 Cr
2) Peg under 1.5, 
3) Operating Margin (OPM) over 20%, 
4)  Stock from a variety of sectors for diversification

5 Stocks to Buy for Long-Term Investment

1) HDFC Bank

Market Cap: Rs.715984.46 Cr
PEG: 0.94
OPM: 57.16
Sector: Private Sector Bank

About the company: HDFC Bank is one of India’s leading private banks and was among the first to receive approval from the Reserve Bank of India (RBI) to set up a private sector bank in 1994. Today, HDFC Bank has a banking network of 6,342 branches and 18,130 ATMs in 3,188 cities/towns. 

2) Indus Towers

Market Cap: Rs.56337.67 Cr
PEG: 0.40
OPM: 53.76
Sector: Telecom - Infrastructure

About the company: Indus Towers is engaged in the business of setting up, operating, and maintaining wireless communication towers. Indus Towers Limited is formed by the merger of Bharti Infratel Limited and Indus Towers. Indus Towers Limited has over 185,447 towers and 335,791 co-locations (as of 31st March 2022) and a nationwide presence covering all 22 telecom circles.

3) Divi’s Lab

Market Cap: Rs.92648.47 Cr
PEG: 1.37
OPM: 43.33
Sector: Pharmaceuticals

About the company: Divi's Laboratories Ltd is engaged in manufacturing Advanced Pharmaceutical Ingredients (APIs), Intermediates, and Nutraceutical ingredients with predominance in exports. It has a market presence in 95 countries and ~14,000 employees and is one of the leading pharmaceutical companies in the world. 

4) Deepak Nitrite

Market Cap: Rs.25308.35 Cr
PEG: 0.27
OPM: 23.57
Sector: Specialty Chemicals

About the company: Deepak Nitrite is a chemical manufacturing company based in Gujarat, India. It is a leading manufacturer of organic, inorganic, fine, and specialty chemicals. It also manufactures a wide range of intermediates for use in industrial explosives, paints, cosmetics, polymers, optical brighteners, and others. 

5) Ultratech Cement

Market Cap: Rs.150178.06 Cr
PEG: 0.91
OPM: 21.89
Sector: Cement & Cement Products

About the company: UltraTech Cement Limited is the cement flagship company of the Aditya Birla Group. UltraTech is the largest manufacturer of grey cement and ready-mix concrete (RMC) and one of the largest manufacturers of white cement in India. It is the third-largest cement producer in the world, excluding China. UltraTech is the only cement company globally (outside China) to have 100+ MTPA of cement manufacturing capacity in a single country. The Company’s business operations span UAE, Bahrain, Sri Lanka, and India.

Bottom line

Investing for the long term is one of the most effective ways to accumulate wealth over time. However, the first thing that has to be done is to focus on the long term and refrain from worrying about the market's daily fluctuations.

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About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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SENSEX
56,599.82
-507.70 (-0.89%)
16,839.20
16,839.20
-168.20 (-0.99%)
37,662.20
37,662.20
-696.95 (-1.82%)

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