In this article, we will help you pick the best stocks for long term in 2024 in India.
Do you want to invest in the Indian stock market and earn high returns in the long term? If yes, then you need to know how to pick the right stocks for 2024 in India.
Before we dive into the best stocks for long term in 2024 in India, let’s first understand:
- The factors that affect the performance of stocks.
- How to evaluate and compare different stocks using some methods.
- Finally, we will recommend some of the best stocks to buy in India for 2024, based on our analysis and research.
Table of Contents
How to Pick the Right Stocks
Importance of picking the right stocks for long-term investment
Picking the right stocks can make a big difference in your long-term investment. The right stocks can give you high returns, regular income, and financial security. The wrong stocks can make you lose money, waste time, and miss opportunities. That’s why you need to learn how to pick the right stocks for your goals and risk tolerance.
Successful Stock Investors in India
India is one of the fastest-growing and most diverse economies in the world. It has many sectors and industries that offer great potential for stock investors. Some of the successful stock investors in India are Rakesh Jhunjhunwala, Radhakishan Damani, Ramesh Damani, and Vijay Kedia. They have made huge profits by investing in stocks that have grown in value over time.
Factors that Affect the Performance of Stocks in India
The performance of stocks in India depends on various factors, both internal and external.
Internal Factors
Some of the internal factors are economic growth, the inflation rate, the interest rate, the fiscal policy, and the monetary policy of the country.
These factors affect the demand and supply of goods and services, the cost of production and borrowing, the profitability and competitiveness of businesses, and the income and spending of consumers.
External Factors
Some of the external factors are the global market conditions, the geopolitical events, the trade relations, and the exchange rate fluctuations.
These factors affect foreign investment, the export and import, the currency value, and the market sentiment of the country.
Other Factors
Another factor that affects the performance of stocks in India is the COVID-19 pandemic, which has caused a surge in cases and deaths in the country.
The pandemic has also boosted the demand for drugs, tests, and medical equipment, which has benefited the pharma sector. The pharma sector has also become a haven for investors in times of market uncertainty and volatility.
Pharma Sector
The Pharma Index has shown a remarkable recovery since March 2023, when it bottomed at around 12,000 points. Since then, the Pharma Index has rallied by more than 40%, reaching over 17,000 points by January 2024. This indicates that the pharma sector has a strong momentum and a bright future ahead, especially if the Covid-19 situation worsens or persists.
If you are interested in investing in the pharma sector, you have two options:
- You can either pick your stocks, or
- You can buy a pharma ETF (Exchange Traded Funds).
Example of Pharma Stock
One example of a pharma stock that has performed exceptionally well in the past year is Wockhardt Pharma.
Wockhardt Pharma is a company that produces and sells generic drugs, biopharmaceuticals, and vaccines. Wockhardt Pharma has more than doubled its share price in the past year, from around Rs. 200 to over Rs. 500 in January 2024.
Even though Wockhardt Pharma is a loss-making company, with no P/E ratio. This shows that the market is optimistic about Wockhardt Pharma’s growth potential and prospects, especially in the vaccine segment.
This is just one example of a pharma stock that has benefited from the Covid-19 pandemic. Many other pharma stocks have similar or even better performance and potential. This is why the pharma sector is one of the best sectors to invest in India for 2024.
However, you should also be aware of the risks and challenges that the pharma sector faces, such as regulatory hurdles, competition, pricing pressure, and patent issues. Therefore, you should always do your due diligence and research before investing in any stock or ETF.
Methods to Evaluate and Compare Different Stocks
Some of the common methods are when you choose the best stocks for long term investment:
- Valuation: The valuation is the measure of how cheap or expensive a stock is, based on its current price and its expected future earnings.
- Earnings: The earnings are the measure of how profitable a company is, based on its revenue and expenses.
- Dividends: The dividends are the measure of how much a company pays its shareholders from its earnings, as a reward for holding the stock.
- Growth Potential: The growth potential is the measure of how fast a company can increase its earnings and market share, based on its innovation and expansion.
- Risk-reward Ratio: The risk-reward ratio is the measure of how much return a stock can offer, compared to how much risk it involves, based on its volatility and uncertainty.
Therefore, when picking stocks for 2024 in India, you need to use these criteria or methods and compare them with the industry average and the market benchmark.
Top 15 Best Stocks for Long Term in India for 2024
Based on the factors and criteria we discussed, some of the best stocks for long term to buy in India in 2024 are:
Reliance Industries Ltd. (RIL)
Sector: Conglomerate
Future Potential: RIL has a wide range of businesses, covering sectors like energy, petrochemicals, telecommunications, retail, media, and digital services. RIL can take advantage of India’s increasing consumption and digitalization trends, as well as its innovations in new technologies, such as 5G, cloud computing, artificial intelligence, and blockchain.
HDFC Bank Ltd. (HDFCBANK)
Sector: Banking and Financial Services
Future Potential: HDFCBANK is one of the leading private sector banks in India, with a wide network of branches, ATMs, and digital platforms. HDFCBANK can benefit from India’s growing economy, rising income, and increasing financial inclusion, as well as its focus on expanding its customer base, improving its asset quality, and enhancing its digital capabilities.
Infosys Ltd. (INFY)
Sector: Information Technology (IT) Services
Future Potential: INFY is one of the leading IT services companies in India, with a global presence and a diversified portfolio of offerings. INFY can benefit from the increasing demand for digital transformation, cloud computing, cybersecurity, and data analytics, as well as its investments in innovation, research, and development.
Tata Consultancy Services Ltd. (TCS)
Sector: Information Technology (IT) Services
Future Potential: TCS is one of the leading IT services companies in India, with a global presence and a diversified portfolio of offerings. TCS has a strong market presence, expertise, and quality, as well as a large and diversified client base. It has a strong growth potential, with its focus on emerging technologies, such as artificial intelligence, blockchain, and the Internet of Things (IoT).
Hindustan Unilever Ltd. (HUL)
Sector: Fast Moving Consumer Goods (FMCG)
Future Potential: HUL has a strong market position, reputation, and brand value, as well as a loyal and satisfied customer base. HUL has a moderate growth potential, with its expansion into new categories, such as health and wellness, and premiumization of its products.
Asian Paints Ltd. (ASIANPAINT)
Sector: Paints and Coatings
Future Potential: ASIANPAINT has a strong market presence, expertise, and quality, as well as a large and diversified customer base. It has a high growth potential, with its expansion into new segments, such as home decor, waterproofing, and industrial coatings.
Bajaj Finance Ltd. (BAJFINANCE)
Sector: Non-Banking Financial Companies (NBFC)
Future Potential: BAJFINANCE is one of the leading NBFCs in India, with a wide range of products and services, such as consumer loans, business loans, wealth management, and insurance. It can benefit from India’s growing economy, rising income, and increasing credit penetration, as well as its focus on innovation, technology, and customer satisfaction.
Tata Motors Ltd. (TATAMOTORS)
Sector: Automobile
Future Potential: TATAMOTORS is one of the leading automobile manufacturers in India, with a wide range of products, such as cars, SUVs, buses, trucks, and defense vehicles. It has a high growth potential, with its diversification into new segments, such as electric vehicles, connected vehicles, and shared mobility.
Tata Consumer Products Ltd. (TATACONSUM)
Sector: Consumer Products
Future Potential: TATACONSUM is one of the leading consumer products companies in India, with a diverse portfolio of products, such as tea, coffee, salt, spices, and packaged foods. It can benefit from India’s growing consumption and urbanization trends, as well as its focus on innovation, quality, and sustainability.
Larsen & Toubro Ltd. (LT)
Sector: Engineering and Construction
Future Potential: LT is one of the leading engineering and construction companies in India, with a diversified portfolio of projects, such as infrastructure, power, defense, hydrocarbon, and metallurgy. LT has a high growth potential, with its expansion into new markets, such as Africa, the Middle East, and Southeast Asia, and new segments, such as smart cities, renewable energy, and digital solutions.
Power Grid Corporation of India Limited (POWERGRID)
Sector: Power Transmission
Future Potential: POWERGRID is one of the largest and most reliable power transmission companies in India, with a vast network of transmission lines and substations. It is a part of the Ministry of Power and can benefit from India’s growing power demand and supply.
Bajaj Auto Ltd. (BAJAJ-AUTO)
Sector: Automobile
Future Potential: BAJAJ-AUTO is one of the leading two-wheeler and three-wheeler manufacturers in India, with a wide range of products, such as bikes, scooters, and auto rickshaws. It has a high growth potential, with its expansion into new markets, such as Africa, Latin America, and Southeast Asia, and new segments, such as electric vehicles, premium bikes, and sports bikes.
NTPC Limited (NTPC)
Sector: Power Generation
Future Potential: NTPC is one of the largest and most reliable power generation companies in India, with a diversified portfolio of sources, such as thermal, hydro, solar, and wind. It is a part of the Ministry of Power and has a high growth potential, with its expansion into new areas, such as renewable energy, smart grid, and cross-border transmission.
Ultratech Cement Limited (ULTRACEMCO)
Sector: Cement
Future Potential: ULTRACEMCO (part of Aditya Birla Group) is one of the largest and most reputed cement companies in India, with a wide range of products and services, such as grey cement, white cement, ready-mix concrete, and building solutions. It can benefit from India’s growing construction and infrastructure sector.
Titan Company Limited (TITAN)
Sector: Fashion Accessories and Products
Future Potential: TITAN (part of Tata Group) is one of the leading fashion accessories and products companies in India, offering a wide range of watches, wallets, belts, wall clocks, watch straps, and gift cards. TITAN can benefit from India’s growing consumption and urbanization trends and its diversification into new categories, such as jewellery, eyewear, fragrances, and smart wearables.
Note: If you want to do more research on the best stocks for long term in 2024 in India, you can visit the NSE India official website or use your trading platform.
Conclusion
Investing in the Indian stock market can be a rewarding and profitable venture if you know how to choose the right stocks for your goals and risk appetite.
However, you should also be aware of the risks and uncertainties involved and always do your due diligence before making any investment decisions. Remember, the past performance of a stock is not a guarantee of its future results, and the market conditions can change at any time.
We hope this article has helped you gain some insights and confidence in picking the best stocks for long term in 2024 in India. If you have any questions or feedback, please feel free to leave a comment below.
Thank you for reading, and happy investing! 😊
