In which Indian company's stock should I invest for a long term?


In which Indian company's stock should I invest for a long term?

Investors often want to invest in the long term so that their money grows with time. But identifying which stock will deliver good results, which underlying company will have a sustainable business model has always been an issue.Another question that may arise in your mind is how long exactly is long term?It can be subjective. As an investor, you should look at the fundamentals of the company and think which stock will give you good returns in a substantial amount of time.
Each trader needs to have a trading routine to find the perfect trading strategy that works for them. If you as a trader take your time on the front end to plan things out and ask yourself the right questions, then There is extreme volatility in the stock market at present. Some stocks are trading at all-time highs and others at decade lows. Economic logic suggests a product is an attractive buy if it is available at a discount. There are a number of stocks going dirt cheap right now. For example, Yes Bank is quoting at Rs 30, compared to its all-time high of Rs 404 around a year back. If you widen your search to include mid- and small-cap counters, you will find a large number of stocks going for 90% less than their peak prices. Should you buy stocks quoting at significant discounts to all-time highs? Experts advise caution. You could well be trying to catch a falling knife.
Titan Company Limited
Titan Company Limited is a subsidiary of the Tata group. Titan is the fifth largest integrated watch manufacturer in the world.We are all well aware of its product ‘Sonata’, which is one of the most reputed watch brands.This brand also came up with FastTrack, one of the most popular and trending watch brand. Titan also launched ‘Tanishq’, India’s most trusted and leading jewelry brand.This company has no debt recorded in its book. Also, the return on equity has been on the higher side of the company.
NMDC
NMDC has been on the receiving end ever since Karnataka decided to withdraw its letter of lease renewal for the Donimalai mining block. However, investors can have a sigh of relief now because the government of India has amended the Mineral Rules 2015 and this makes sure the state government renews the mining lease of a government company. In addition to the resumption of production from Donimalai mine (EPS may go up by around 15% because of this resumption), this amendment als ..
Housing Finance Companies / NBFC:
My next bet is on Housing Finance Companies for Long Term Investment. as i mentioned in the previous post. The reason for selection of Housing Finance Company is that their balance sheets are cleaner compared to banks. According to recent reports, the NPA’s of banks are much higher than what is being reported. It can be as high as 13%. On the other hand, NPA’s of most of the Housing Finance Companies are less than 1% which means they are better managed. For Long Term Investment, i considered IndiaBulls Housing Finance and DHFL. Most of the analysts are more Bullish on these 2 HFC’s along with LIC Housing Finance. In my analysis, i found IndiaBulls Housing Finance more promising and growth potential is HIGH. Another reason was the inclusion of IndiaBulls Housing Finance in MSCI ACWI Value Index. It brings additional funds of approx RS 15 Mn to the stock.
Kotak Mahindra Bank
Kotak Mahindra bank has earned its position in the top banks in India, though being much younger than many other banks. Kotak Mahindra has delivered phenomenal growth, starting from its inception in 2003. This bank is the third largest bank in terms of market capitalization after HDFC and ICICI.
Pidilite Industries
Pidilite Industries Limited is the manufacturer of the famous product ‘Fevicol’. They are the market leaders in the adhesive segment.The brand value and brand equity associated with Fevicol is very high and hence, there are only a few substitutes in the market.
Sun Pharma
The next stock is also for pharmaceutical space – Sun Pharma. Sun Pharma is the manufacturer of drugs for diabetes, cardiology, neurology etc. After the acquisition of Ranbaxy, Sun Pharma has become world’s 5th Largest generic pharmaceutical company.
Indusind Bank
Diversification always helps the investor in mitigating risk. Keeping this thought in mind next stock pick for long term investment is from banking sector – Indusind Bank. Indusind Bank is one of the leading private sector bank of India.
Asian Paints
Asian paints is next stock in the list. Asian Paints deals in wide range of paints, varnishes and synthetic resins. The company also produce special type of chemical and latex products. Asian paints is holding a major share in the domestic color market.
UltraTech Cement
UltraTech Cement is next stock pick for the long term investment. UltraTech cement is leading cement manufacturer in India. UltraTech is also one of the largest exporters of cement clinker. It is part of Aditya Birla Group.
Aurobindo Pharma
Aurobindo Pharma features among the top 10 companies in India in terms of consolidated revenues. Aurobindo exports to over 125 countries across the globe with more than 70% of its revenues derived out of international operations.
Larsen & Toubro
Larsen & Toubro Limited, commonly known as L&T Limited is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. . The company has business interests in basic and heavy engineering, construction, realty, manufacturing of capital goods, information technology, and financial services. As at March 31, 2018, L&T Group comprises 93 subsidiaries, 8 associates, 34 joint-venture and 33 joint operations companies.

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