Stock market is one of the popular investment avenues where you can make huge wealth in the long run. Over the years the Indian stock market has given incredible returns to the shareholders. There are many top shares to buy for long term which have the potential to grow your money. If you make long term investment in the stocks of the right company, apart from the price appreciation, you enjoy many benefits like dividends, bonus shares, preferential shares, etc.
However, there are many aspects that you must consider before making long term investment in a stock. Some of the factors include future growth, debt to equity ratio, market’s condition in the future, etc. So, if you are planning to invest for a longer horizon, we have made a list of the few top shares to buy for long term success.
Best Shares To Buy In India For Long Term
• Aditya Birla Capital Ltd.
Aditya Birla Capital Ltd. has a diversified business model that involves life insurance, mutual funds, home finance, etc. The diversity of the business protects it from the slowdown in one particular sector. This leads to good performance in the form of consistent revenue and profitability. The wide and diverse business of the company ranks it among the best shares to buy today for the long term. At present, the company has a market capitalisation of Rs. 3,645.75 crores.
• Can Fin Homes Ltd.
Can Fin Homes Ltd. is one of the well-performing finance companies of India. The strong financial books provide a good cushion to the company even in the economic slowdown. The reliable management of the company ranks it among the best shares to buy in India for long term. The company is also not severely affected by frauds and crisis in the NBFC sector. The current market capitalisation of the company is Rs. 4,948.01 crores.
• Coal India Ltd.
Coal India Ltd. is one of the leading companies in the energy sector. The company has a market capitalisation of Rs. 125,565.59 crores. Today, this company is the single largest coal producer in the world. The company operates through 82 mining areas along with 7 wholly-owned coal producing subsidiaries in India. Numerous projects are already in the pipeline and order book is also very strong. Going ahead the company shall continue to fulfill the growing needs of the coal demand across the globe and remain the leader of the market. Therefore, when you think of shares to buy for long term, Coal India Ltd. is a good option.
• Dr Lal Pathlabs Ltd.
Dr Lal Pathlabs Ltd. is one of the good shares to buy for long term. The company functions in the healthcare sector and has a market capitalisation of Rs. 8,915.89 crores. The company owns top pathology labs in India. With quality manpower and experts, they remain one of the top players in this segment. The company has over 1,000 field executives with more than 6,000 pick up points across the country. What makes it the best shares to buy today for long term is that the company is expected to perform well and cover a good market share in the long term.
• Bharat Electronics Ltd (BEL)
Bharat Electronics Ltd (BEL) is in the consumer durables sector and has a market capitalisation of Rs. 22,964.89 crores. BEL is one of the leaders in supplying specialized electronic equipment to the Indian Defence Services. Apart from the defense sector, the company has a significant presence in the civilian market as well and supplies numerous products. The list of items produced by the company is long as it caters to many different sectors of the economy. Going ahead the demand for its products is expected to remain robust and the company shall grow well. Bharat Electronics Ltd (BEL) definitely falls in the category of good shares to buy for long term.
• NBCC (India) Ltd.
NBCC (India) Ltd. functions in the real estate sector and has a market capitialisation of 6,192 crores. Founded by the government of India, the company holds the status of Navratna CPSE. The company has a significant presence in the Project Management Consultancy (PMC), Engineering Procurement & Construction (EPC) and Real Estate Development. With the slow down in the real estate segment, the company is trading at cheaper valuations. What makes its shares to buy for long term is the expected recovery in the economy and faster execution of orders by the company.
• RBL Bank Ltd.
RBL Bank Ltd. is in the banking sector with the market capitalisation of Rs. 15,960.34 crores. This bank has been rated as one of the best mid-sized banks in India. RBL Bank is one of the fastest-growing private banks of the country and it is continuously expanding its presence across the different states. Currently, the bank has 332 branches in India. In the future, the customer base of the bank is expected to grow significantly. In addition, the reliable management of the bank makes it the best shares to buy in India for long term.
The above mentioned are few of the shares to buy for long term. Since there are many companies listed on the stock exchange, it is important to know the different criteria that you need to consider before purchasing stocks for the long term. To assist you in selecting the best shares to buy in India for long term, we have listed down certain points that you may consider.
How To Choose Stocks For The Long Run?
The first and foremost thing that you need to do before purchasing a stock for the long term is to analyse the financials of the company. You must check the company’s debt levels, the cash reserves available, provisions made, etc. By understanding the financials of the company, you would come to know if the company will be able to survive in the long run if recession hits the market.
• Future Growth
It is always good to invest in those businesses which show the signs of future growth. Future growth has a direct impact on the profitability of the company. If it is expected that the demand for a company’s products or services would grow in the coming years it would lead to higher profits. Being a shareholder in a company that shows consistent growth not only gives you returns in the form of share price appreciation but also in the form of a dividend, bonus shares, etc.
• Government Policy
The policies of the government have a direct effect on a company. If any sector is expected to receive boost and support from the government then the shares of companies functioning in that sector can be considered for long term investment. While on the other hand, if any sector is going to face many hardships from the government then investment in such companies must be completely avoided.
• Competent Management/ Corporate Governance
When you are looking for shares to buy for long term, it is always advisable to look at the quality of the management. A company with good management must be the first choice for any investor. This is because good management always ensures that ethical practices are followed in the company and there is no fraud. Therefore, invest for the long term in those companies where no one can question the credibility of the management.
The above mentioned are a few things to consider before purchasing stock for the long term. In India, you can invest in the stock market only if you have a demat account. If you are a beginner and want to invest for the long term in the stock market, you may consider opening a demat account with IndiaNivesh Ltd. Our in-house experts and analysts help beginners and seasoned investors by recommending the long term shares to buy in India.