What are Long Term Stocks?
Long-term stocks are investments held for an extended period, typically more than a year. These stocks are chosen for their potential to grow steadily over time, often due to the company's strong financials, market position, and growth prospects. Investors typically open a demat account and a trading account to manage their long-term investments efficiently.
Key Characteristics of Long-Term Stocks:
Stability: Companies with stable financial performance and a strong market presence.
Growth Potential: Potential for long-term growth due to innovative products or services.
Diversification: Spread across various sectors to minimize risk.
Long Term Investment Industry in India
The long-term investment industry in India is robust, with many investors focusing on building wealth over time. This approach involves selecting stocks from established companies with a history of consistent performance. The industry supports various investment tools, such as MTF (Margin Trading Facility), which can be used to leverage investments.
Current Trends in Long-Term Investing:
Diversification: Investors are diversifying their portfolios across sectors like IT, FMCG, and pharmaceuticals.
Sustainability: There is a growing interest in sustainable investments that align with environmental and social goals.
Digital Platforms: The use of digital platforms for managing investments, including brokerage calculators, is becoming more prevalent.
What are the Features of Long Term Stocks in India?
Long-term stocks in India typically exhibit certain features that make them attractive for sustained investment. These include high return on equity (ROE), stable profit margins, and a strong track record of dividend payments. Investors often use a brokerage calculator to evaluate the costs associated with their investments.
Features of Long-Term Stocks:
Feature
| Description
|
High ROE
| Indicates a company's ability to generate profits from shareholder equity.
|
Stable Profit Margins
| Consistent profitability over time, reflecting operational efficiency.
|
Dividend Yield
| Regular dividend payments can provide a steady income stream.
|
Low Debt-to-Equity Ratio
| Indicates financial health and lower risk.
|
When considering long-term investments, it's essential to stay informed about market trends and upcoming opportunities, such as an upcoming IPO, which can offer potential for growth. However, strategies like intraday trading are generally not suitable for long-term investors.
Top Long Term Stocks in India as per Market Capitalisation
The following table lists the largest long term stocks in India based on market capitalisation. It includes stock price data, annual price range, and sector classification.
Company Name
| Last Price (₹)
| % Change
| 52-Week High (₹)
| 52-Week Low (₹)
| Market Cap (₹ crore)
| Sector
|
Reliance
| 1,219.30
| 2.84
| 1,608.95
| 1,115.55
| 16,50,002.23
| Oil Exploration and Production
|
HDFC Bank
| 1,806.60
| 2.33
| 1,880.00
| 1,430.15
| 13,82,450.37
| Bank – Private
|
TCS
| 3,232.30
| -0.43
| 4,585.90
| 3,060.25
| 11,69,474.43
| IT Services & Consulting
|
Bharti Airtel
| 1,757.30
| 2.42
| 1,778.95
| 1,201.30
| 10,19,265.15
| Telecommunication – Service Provider
|
ICICI Bank
| 1,313.30
| 0.98
| 1,372.50
| 1,048.35
| 9,35,384.61
| Bank – Private
|
Source: MoneyControl
Overview of Long Term Stocks in India by Market Cap
This table summarises the top long term stocks in India using only the company names and market capitalisation, offering a quick view of their relative size.
Company Name
| Market Cap (₹ crore)
|
Reliance
| 16,50,002.23
|
HDFC Bank
| 13,82,450.37
|
TCS
| 11,69,474.43
|
Bharti Airtel
| 10,19,265.15
|
ICICI Bank
| 9,35,384.61
|
Source: MoneyControl
Reliance
Reliance Industries Ltd operates across oil and gas exploration, refining, petrochemicals, and retail. It is India's largest private sector company by revenue and market capitalisation. The stock is listed on both NSE and BSE.
The following table captures market and operational metrics for Reliance Industries Ltd. as of April 14, 2025.
Metric
| Value
|
Market Capitalisation
| ₹16,49,528 crore
|
Last Traded Price
| ₹1,218.95
|
52-Week High / Low
| ₹1,608.80 / ₹1,114.85
|
TTM EPS
| ₹51.13 (-0.62% YoY)
|
TTM PE
| 23.84
|
Book Value Per Share
| ₹605.55
|
P/B Ratio
| 2.02
|
Dividend Yield
| 0.82%
|
1-Year Performance
| -17.62%
|
ROE
| 8.77%
|
Debt-to-Equity Ratio
| 0.41
|
Sector PE
| 15.68
|
Beta
| 1.16
|
Source: MoneyControl
Highlights:
177.34% 20-day average delivery rate
Included in all major indices (NIFTY 50, Sensex, BSE 500)
Face value of ₹10 per share
HDFC Bank
HDFC Bank Ltd offers a range of commercial banking services, including retail, wholesale, and treasury operations. It serves customers across segments and is part of the NIFTY 50, Sensex, and BSE 500 indices. The stock is listed on both NSE and BSE.
The table below provides valuation, performance, and operational metrics for HDFC Bank as of April 14, 2025.
Metric
| Value
|
Market Capitalisation
| ₹13,82,565 crore
|
Last Traded Price
| ₹1,806.75
|
52-Week High / Low
| ₹1,880.00 / ₹1,426.80
|
TTM EPS
| ₹90.93 (+7.99% YoY)
|
TTM PE
| 19.87
|
Book Value Per Share
| ₹625.39
|
P/B Ratio
| 2.89
|
Dividend Yield
| 1.08%
|
1-Year Performance
| +16.67%
|
ROE
| 14.03%
|
NIM
| 3.21%
|
Sector PE
| 19.29
|
Beta
| 0.90
|
Source: MoneyControl
Highlights:
48.82% 20-day average delivery rate
Face value of ₹1 per share
Included in all major indices (NIFTY 50, Sensex, BSE 100, BSE 500)
TCS
Tata Consultancy Services (TCS) is a global IT services and consulting company offering software development, digital transformation, and business outsourcing services. It operates across sectors such as telecom, BFSI, and retail, and is listed on NSE and BSE.
The table below summarises valuation and performance metrics for Tata Consultancy Services as of April 14, 2025.
Metric
| Value
|
Market Capitalisation
| ₹11,69,184 crore
|
Last Traded Price
| ₹3,231.50
|
52-Week High / Low
| ₹4,592.25 / ₹3,056.05
|
TTM EPS
| ₹134.78 (+6.22% YoY)
|
TTM PE
| 23.98
|
Book Value Per Share
| ₹280.52
|
P/B Ratio
| 11.52
|
Dividend Yield
| 2.26%
|
1-Year Performance
| -18.12%
|
ROE
| 50.73%
|
Debt-to-Equity Ratio
| 0.00
|
Sector PE
| 28.30
|
Beta
| 0.65
|
Source: MoneyControl
Highlights:
100.61% 20-day average delivery rate
Promoter holding: 71.77% (unchanged in Dec 2024)
Zero-debt capital structure
Bharti Airtel
Bharti Airtel Ltd is a major telecom services provider with operations in India and Sri Lanka. It has been a key player in expanding mobile and broadband networks, and operates in the wireless, fixed-line, and digital TV spaces. The stock is traded on NSE and BSE.
This table presents select market and financial indicators for Bharti Airtel as of April 14, 2025.
Metric
| Value
|
Market Capitalisation
| ₹10,18,859 crore
|
Last Traded Price
| ₹1,756.60
|
52-Week High / Low
| ₹1,779.00 / ₹1,210.35
|
TTM EPS
| ₹42.42 (+229.51% YoY)
|
TTM PE
| 41.41
|
Book Value Per Share
| ₹150.17
|
P/B Ratio
| 11.70
|
Dividend Yield
| 0.46%
|
1-Year Performance
| +45.84%
|
ROE
| 7.39%
|
Debt-to-Equity Ratio
| 1.50
|
Sector PE
| 180.85
|
Beta
| 0.95
|
Source: MoneyControl
Highlights:
86.15% 20-day average delivery rate
Included in NIFTY 50, Sensex, and BSE 500
Face value of ₹5 per share
ICICI Bank
ICICI Bank Ltd is one of India’s largest private sector banks, offering diversified services including loans, deposits, cards, insurance, and demat account facilities. It operates under a universal banking model, serving retail and institutional clients. The stock is listed on both NSE and BSE.
The table below summarises selected valuation and operating metrics for ICICI Bank as of April 14, 2025.
Metric
| Value
|
Market Capitalisation
| ₹9,34,209 crore
|
Last Traded Price
| ₹1,311.65
|
52-Week High / Low
| ₹1,373 / ₹1,048.10
|
TTM EPS
| ₹70.56 (+9.56% YoY)
|
TTM PE
| 18.59
|
Book Value Per Share
| ₹393.27
|
P/B Ratio
| 3.34
|
Dividend Yield
| 0.76%
|
1-Year Performance
| +18.23%
|
ROE
| 17.49%
|
NIM
| 3.61%
|
Sector PE
| 19.29
|
Beta
| 0.98
|
Source: MoneyControl
Highlights:
83.12% 20-day average delivery rate
Included in NIFTY 50, Sensex, BSE 500, and BSE 100
Face value of ₹2 per share
What Factors Should One Consider Before Investing in Long Term Stocks in India?
When considering long-term stocks, several key factors should be evaluated:
● Financial Performance: Assess the company's revenue growth, profitability metrics, and cash flow to ensure a healthy business.
● Management Team: A competent leadership is crucial for long-term success.
● Competitive Advantage: Look for unique products, strong brands, or proprietary technology.
● Market Trends: Consider sectors with high growth potential, such as technology or renewable energy.
● Macroeconomic Factors: Evaluate interest rates and inflation, which can impact company performance.
● Transparency: Ensure the company provides clear and sufficient disclosures.
What Factors Influence the Performance of Long Term Stocks?
The performance of long-term stocks is influenced by several factors:
● Economic Conditions: Macroeconomic factors like GDP growth and inflation can impact stock performance.
● Market Sentiment: Investor confidence and market trends can influence stock prices.
● Company-Specific Factors: Financial health, management decisions, and competitive advantages play a significant role.
● Regulatory Changes: Legal and regulatory changes can affect industry dynamics and stock performance.
How do Long Term Stocks Work?
Long-term stocks work by providing investors with a strategic approach to wealth creation over time. Investors typically open a demat account and a trading account to manage these investments. The strategy involves selecting stocks with strong fundamentals and holding them for an extended period to benefit from compounding returns and potential dividend income.
Tips for Investing in Long Term Industry in India
Here are some tips for investing in the long-term industry:
● Diversify Your Portfolio: Spread investments across sectors to mitigate risks.
● Avoid Blindly Following Tips: Conduct thorough research before making investment decisions.
● Monitor and Adjust: Regularly review your portfolio and adjust as needed to ensure alignment with your investment goals.
● Use Investment Tools: Utilize tools like a brokerage calculator to evaluate investment costs and optimize your strategy.
How to Pick Long Term Stocks
To pick long-term stocks, consider the following steps:
1. Research Financials: Evaluate the company's balance sheet, cash flow, and debt-to-equity ratio.
2. Assess Competitive Advantage: Look for unique strengths that can sustain long-term growth.
3. Consider Dividend History: Regular dividend payments can enhance returns.
4. Evaluate Growth Potential: Focus on sectors with promising future prospects.
Who Should Explore Long Term Stocks?
Long-term stocks are suitable for investors seeking stable growth over time, including:
Risk-Averse Investors: Those who prefer lower volatility and steady returns.
Retirement Planners: Individuals planning for long-term financial goals.
Growth-Oriented Investors: Those willing to hold onto investments for extended periods to capitalize on compounding returns.
Why Invest in Long Term Stocks?
Investing in long-term stocks offers several benefits:
● Potential for Higher Returns: Long-term investments often outperform other asset classes over time.
● Lower Taxes: Holding stocks for more than a year can reduce tax liabilities.
● Compounding: The longer you hold onto investments, the greater the potential returns through compounding.
● Stability: Long-term stocks can help navigate short-term market fluctuations. Unlike intraday trading, which focuses on short-term gains, long-term investing provides a stable approach to wealth creation. Additionally, staying informed about market trends and potential opportunities like an upcoming IPO can help investors make informed decisions.
Should You Invest in Long Term Stocks?
Investing in long-term stocks can be a strategic way to build wealth over time. It allows investors to benefit from compounding returns, dividend payouts, and the potential growth of established companies. Long-term investments generally require opening a demat account and a trading account for efficient management. While it is not risk-free, holding stocks for extended periods reduces the impact of market volatility compared to intraday trading. However, timing and research are crucial to maximizing returns.
What are the Risks of Investing in Long Term Stocks in India?
Investing in long-term stocks comes with inherent risks that need careful consideration:
Risk Type
| Description
|
Market Risk
| Fluctuations in stock prices due to economic or geopolitical events.
|
Regulatory Risk
| Changes in government policies or regulations affecting industries.
|
Interest Rate Risk
| Rising interest rates increase borrowing costs, impacting profitability.
|
Taxability Risk
| Amendments in tax laws can reduce after-tax returns.
|
Inflationary Risk
| Inflation can erode the real value of returns over time.
|
Diversification and tools like MTF can help mitigate these risks while maintaining a long-term perspective.
What are the Advantages of Investing in Long Term Stocks in India?
Long-term stocks offer several advantages for investors:
Compounding Returns: Holding investments for extended periods amplifies returns through compounding.
Lower Tax Burden: Long-term capital gains taxes are typically lower than short-term taxes.
Dividend Income: Regular dividends provide a steady income stream.
Reduced Volatility Impact: Unlike intraday trading, long-term investing smooths out short-term market fluctuations.
Wealth Creation Potential: Established companies with strong fundamentals often deliver consistent growth.
These benefits make long-term stocks an attractive option for disciplined investors seeking sustainable wealth growth.
Who Can Invest in Long Term Stocks?
Long-term stocks are suitable for various types of investors:
Investor Type
| Characteristics
|
Risk-Averse Investors
| Prefer stability and lower volatility over quick gains.
|
Retirement Planners
| Focus on building wealth for post-retirement financial security.
|
Growth-Oriented Individuals
| Seek higher returns by holding investments for extended periods.
|
Opening a demat account, using tools like a brokerage calculator, and staying informed about opportunities like an upcoming IPO can help these investors achieve their goals.
Is Investing in Long Term Stocks Risky?
While long-term investing reduces short-term volatility, it is not entirely risk-free:
Risks such as market downturns, regulatory changes, or inflation can affect stock performance.
Economic factors like interest rate fluctuations also pose challenges.
However, strategies like diversification, portfolio rebalancing, and using tools such as stop-loss orders can mitigate risks effectively.
Long-term investing requires patience and informed decision-making to navigate uncertainties successfully.
How To Invest In Long Term Stocks
Investing in long-term stocks involves several steps:
1. Open Accounts: Start by opening a demat account and a trading account to manage investments.
2. Research Companies: Evaluate financial performance, growth potential, and industry trends.
3. Diversify Portfolio: Spread investments across sectors to minimize risks.
4. Monitor Investments: Regularly review performance and rebalance as needed.
5. Use Investment Tools: Leverage tools like a brokerage calculator to estimate costs.
Staying updated on opportunities such as an upcoming IPO, while avoiding impulsive decisions driven by market rumors, is crucial for success.
What is the Impact of Government Policies on Long Term Stocks?
Government policies significantly influence long-term stocks by shaping market conditions and investor confidence. These policies can impact sectors differently, affecting stock performance:
Policy Type
| Impact on Long-Term Stocks
|
Tax Policies
| Changes in tax rates can affect profitability and investor returns.
|
Regulatory Policies
| Stricter regulations can increase compliance costs but ensure stability.
|
Monetary Policies
| Interest rate changes can influence borrowing costs and stock valuations.
|
Fiscal Policies
| Government spending and disinvestment decisions can impact sector-specific stocks.
|
For instance, policies affecting public sector undertakings (PSUs) can lead to reduced capital expenditure due to increased dividend payouts.
How Long Term Stocks Perform in Economic Downturns
Long-term stocks generally perform better during economic downturns due to their stability and lower volatility compared to short-term investments like intraday trading. However, they are not immune to economic challenges:
Diversification: Helps mitigate risks by spreading investments across sectors.
Stable Companies: Focus on companies with strong financials and competitive advantages.
Market Sentiment: Monitor investor confidence and adjust strategies accordingly.
Long Term Stock Highlights from Union Budget 2025-2026
The Union Budget typically outlines policies that can impact long-term stocks. While specific details for the 2025-2026 budget are not available, general trends include:
Tax Incentives: Potential tax breaks for certain sectors to boost growth.
Infrastructure Spending: Increased government spending can benefit related sectors.
Regulatory Reforms: Simplification of regulatory frameworks to enhance business efficiency.
Investors can use tools like a brokerage calculator to assess the impact of these policies on their investments.
Future Trends and Opportunities of Investing in Long Term Stocks
Future trends in long-term stocks include:
Sustainable Investing: Growing interest in environmentally and socially responsible investments.
Digitalization: Increased use of digital platforms for investment management.
Diversification: Expanding portfolios to include emerging sectors and technologies.
Staying informed about market trends and opportunities like an upcoming IPO can help investors capitalize on new growth areas.
What is the GDP Contribution of Long Term Stocks?
Long-term stocks contribute to GDP by fostering economic growth through investments in various sectors. While specific data on their direct GDP contribution is not readily available, their role in:
Capital Formation: Providing funds for businesses to expand and innovate.
Employment Generation: Supporting job creation through investments in different industries.
Stability: Offering stable returns, which can attract foreign investment and boost economic activity.
What is the Future of Long Term Stocks?
The future of long-term stocks looks promising due to their ability to provide stable growth and wealth creation over time. Key factors influencing their future include:
Technological Advancements: Increased efficiency in investment management through digital tools.
Regulatory Environment: Favorable policies can enhance investor confidence and market stability.
Global Economic Trends: Integration with global markets can open up new opportunities for growth.
Investors can leverage tools like MTF to optimize their long-term investment strategies while maintaining a demat account and trading account for efficient management.
Why is It Worth Buying Long Term Stocks Now?
Investing in long-term stocks is beneficial for several reasons:
● Potential for Higher Returns: Long-term investments often outperform other asset classes over time, providing higher returns through compounding.
● Lower Taxes: Long-term capital gains are typically taxed at a lower rate than short-term gains, reducing tax liabilities.
● Stability and Diversification: Long-term stocks help navigate market fluctuations by spreading investments across sectors, ensuring stability and reducing risk.
● Growth Opportunities: India's growing economy and increasing consumer spending make it an attractive market for long-term investors seeking sustained growth.
Investors can manage these investments efficiently by opening a demat account and a trading account, and using tools like a brokerage calculator to assess costs.
Conclusion
Long-term stocks offer a strategic approach to wealth creation by providing stable growth and potential for higher returns over time. They are particularly beneficial for investors seeking to capitalize on compounding returns and lower tax liabilities. By diversifying portfolios and focusing on companies with strong fundamentals, investors can navigate market fluctuations effectively. Unlike intraday trading, which focuses on short-term gains, long-term investing provides a stable approach to wealth accumulation. Staying informed about market trends and opportunities, such as an upcoming IPO, can further enhance investment decisions. Additionally, leveraging tools like MTF can help optimize investment strategies while maintaining a demat account and trading account for efficient management.
Other Popular Stocks in India
In addition to companies ranked by market capitalisation, several other widely tracked stocks hold significant long-term interest due to their market positioning, strategic initiatives, and sector relevance.
State Bank of India (SBI) remains central to India’s banking system, supported by its extensive reach, digital infrastructure, and ongoing role in financial inclusion.
Infosys continues to be a key player in global IT services, known for its innovation in cloud, AI, and digital transformation across industries.
Hindustan Unilever (HUL) stands out in the FMCG sector with a strong brand portfolio and resilience across market cycles.
ITC is recognised for its diversified business model across FMCG, agribusiness, and hospitality, supported by a wide distribution network.
Larsen & Toubro (L&T) maintains a strong presence in India’s infrastructure development through its engineering and project execution capabilities.
Kotak Mahindra Bank is known for its diversified services and digital-first approach within India's evolving financial ecosystem.
Sun Pharma plays a significant role in India’s pharmaceutical sector, with a global footprint and broad therapeutic coverage.
These companies continue to attract market attention due to their scale, strategic relevance, and contributions across diverse sectors.