Best long term stocks to invest in 2025

Best long term stocks: Long-term stocks are investments that have the potential to grow steadily over a period of 5 to 10 years or more. These stocks are usually associated with companies with strong fundamentals, a solid track record, and a competitive position in the industry. They can help investors achieve long-term goals such as buying a home, planning for retirement, or saving for children’s higher education.

While analyzing the best long-term stocks in India in January 2025, the potential benefits and risks of various stocks will be discussed based on a 5-year CAGR. Investing in these stocks can provide market stability and dividend benefits, although market fluctuations and economic changes can increase the risk. These stocks can be a suitable option for investors who are interested in achieving long-term goals and are ready to take moderate risks.

Why Invest Best long term stocks ?

The best stocks for the long term are generally those of companies that are financially stable, have strong business models, and have a clear strategy for long-term growth. These stocks have the ability to survive in a variety of economic conditions and are often leaders in their industries. These companies, which operate in safe or emerging sectors, are located in sectors such as technology, healthcare, consumer staples, and infrastructure.

Investors can invest in these stocks to increase the value of their assets and receive regular income through dividends. One of the major advantages of long-term stocks is that they are not very affected by minor market fluctuations and are able to provide stable returns over a long period of time. However, it is important to research the company’s financial health, leadership quality, and position in the market well in order to make the right decision.

Best long term stocks to invest

1. Reliance Industries

Reliance Industries Limited (RIL) is one of the largest and most influential companies in India, founded by Dhirubhai Ambani and currently run by Mukesh Ambani. The company is primarily active in the oil-to-chemicals segment, which contributes about 57% of its total revenue. This segment manufactures and processes transportation fuels, polymers, elastomers, and polyesters.

Reliance’s refinery located in Jamnagar is known as the world’s largest single-site refinery complex, where 1.4 million barrels of crude oil are refined daily. In FY22, Reliance processed about 77 million metric tons of products, of which 89% was for sale. The company’s current market capitalization is ₹ 17,62,388 crore and promoter holding is 50.2%. The company’s sales in FY22 were ₹ 9,39,838 crore and net profit was ₹ 79,941 crore.

2. Tata Consultancy Services Ltd

Tata Consultancy Services Limited (TCS) is a leading company of the Tata Group and one of the world’s largest IT services providers. TCS operates in a consultancy-led approach with business, technology and engineering services and solutions, helping clients on their transformational journey. For over 50 years, TCS has been partnering with a wide range of large businesses globally.

The company has a market capitalisation of ₹ 14,92,208 crore, and its current share price is ₹ 4,124. In FY22, TCS generated sales revenue of ₹ 2,52,082 crore and posted a net profit of ₹ 49,006 crore. The promoter holding of the company is 71.8%, reflecting the promoters’ strong confidence in the company.

3. Infosys Ltd

Infosys Limited is India’s second-largest information technology company, known for its consulting, technology, outsourcing, and next-generation digital services. It helps clients execute their digital transformation strategies. The company’s digital services generate about 57% of its revenue, which ranges from improving customer experience to AI-based analytics, big data, and cybersecurity.

Infosys’ traditional services contribute the remaining 43% of revenue, which includes application management and infrastructure services. With a market capitalization of ₹ 7,53,824 crore, Infosys posted sales of ₹ 1,59,988 crore and net profit of ₹ 27,687 crore last year. While the promoter holding is 14.4%, the company’s financial stability and growth potential make it an attractive opportunity for investors.

4. HDFC Bank

HDFC Bank, a major private bank in India, is headquartered in Mumbai. It is the largest private bank in India and the tenth largest in the world. As of April 2024, HDFC Bank had a market capitalization of $145 billion, making it the third largest company in India. The bank is one of the three systemically important banks and holds 15% market share in the Indian banking sector. It also holds 37% market share in advances among private sector banks. HDFC Bank has a current market price of ₹1,637, a stock P/E of 18.1, and a net profit of ₹71,546 crore.

5. ITC Ltd

ITC Ltd, founded in 1910, is India’s largest cigarette manufacturer and seller. It operates in five core business segments: FMCG Cigarettes, FMCG Others, Hotels, Paperboard, Paper & Packaging, and Agribusiness. ITC’s Cigarettes division is the company’s most profitable and contributes significantly to the FMCG segment. It is one of India’s top exporters in the Agribusiness, and the hotels business is growing rapidly.

In January 2024, ITC spun off its hotels business into a separate entity, which will be listed separately by February 2025. The company generates 84% ​​of its revenue from the Indian market and 16% from the international market. Currently ITC has a market capitalization of ₹5,50,765 crore, a stock price of ₹440, and a net profit of ₹20,829 crore.

Disclaimer: This blog is posted solely for educational purposes. The securities mentioned are examples and not recommendations. It is based on various secondary sources from the internet and is subject to change. Please consult an expert before making any related decisions.