Do you know the mystery to Warren Buffett, Benjamin Graham, Peter Lynch, or Rakesh Jhunjhunwala & Mohnish Pabrai’s immense wealth? It’s no complicated mathematical riddle. The mystery to creating infinite wealth is – ‘Long Term Investing’. All these investing sagas have created their fortune through a simple, yet disciplined and valuable investment approach – Long term investing in the. The main purpose of this article is to reveal the top performing stocks in India to buy for the long term.
Disclaimer: Readers are advised to consult their financial planners before making any investment. Please conduct your own research before choosing Top performing stocks in India for your portfolio based on your goals and risk levels. The criteria we have used is for notice purposes only. This is not a recommendation.
1. Reliance Industries
Reliance Industries has been the first to accomplish the feat of a new milestone in market capitalization. They were the first to reach Rs 10 lakh crore, Rs 11 lakh crore, and also Rs 12 lakh crore. RIL began as a textiles company in the 1950s and then expanded into multiple business channels. Currently, the company has oil and gas, refining and petrochemicals as its focus businesses. Other businesses include retail, telecom, communications, and many other subsidiaries. RIL is one of the top-performing stocks in India to buy for the long term.
2. HDFC Bank
HDFC Bank, one of the HDFC counterparts, was set up in 1994 and promoted by HDFC. Since its beginning, Aditya Puri had been leading the bank as its managing director and became the longest-serving MD of a private bank. He was succeeded by Sashidhar Jagdishan in 2020. More than 50% of the bank’s loan book comes from direct loans, which many analysts think is the reason behind its success. In the last eight quarters, since the first quarter of FY 20-21, the net NPA proportion of the bank has been less than 0.5% of its advances. In the July to September quarter, its net NPA proportion was 0.17% of its net advances. Its net profit has grown at a CAGR of 16.28% in the past five fiscal years.
The bank’s businesses are in retail banking, commercial banking, and treasury. This bank is also one of the top-performing stocks in India to buy for 2021 in India.
3. Hindustan Unilever
HUL is one of the biggest FMCG companies in India. Some of the brands under HUL are Glow & Lovely (erstwhile Fair & Lovely), Lifebuoy, Clinic Plus, Vim Bar, Bru Coffee, and several others. The company was established in 1933. In the past 10 years, the company has defeated Sensex by giving more than 680% returns as of January 11, 2021, whereas Sensex has returned about 156.31% in the same period. Its net profit has risen at a CAGR of 10.28% in the last five financial years.
HDFC, or, Housing Finance Development Corporation is the original company to HDFC Bank. The housing finance company was set up in 1977, and since then the corporation claims to have financed over 7 million housing units. Its profit in the past five financial years has grown at a CAGR of 20.19%. Housing finance is the focus business of the larger HDFC Group which houses other financial arms. These arms include HDFC Bank, Life, and General Insurance Arms, and more. HDFC can be one of the top performing stocks in India for the next 10 years.
5. Kotak Mahindra Bank
Kotak Mahindra Bank began as Kotak Mahindra Finance Ltd. It is a non-banking finance company and it became the leading NBFC in India to receive a banking license from RBI. After growing a full-fledged bank in 2003, it has branched into four units; consumer banking, corporate banking, commercial banking, and treasury. The net NPA proportion of this private lender has been constantly reducing: 1.26% of net advances at the end of March 2017 whereas 0.71% at the end of the previous financial year.
6. Bajaj Finance
Bajaj Finance’s stock has given remarkable returns in the past ten years. As of January 11, this stock has given close to 7973% returns. Bajaj Finance has centered on small-ticket loans that have helped it to evade debt rubble. Its loan book reached Rs 1.29 lakh crore as of March 31, 2020. Bajaj Finance is a subsidiary of Bajaj Finserv Ltd., which is a financial assistance company. It is one of the top performing stocks in India to buy for the long term.
7. Bharti Airtel
Airtel was founded in July 1995 after Mittal secured a place in the spectrum auctions. Apart from its prepaid, postpaid, and broadband services, airtel was the first organization to set up a payments bank in India.
In recent times, Airtel also overhauled Jio in terms of adding new subscribers monthly.
Reliance Jio supplemented 2.2 million subscribers and Bharti Airtel added 3.7 million subscribers in October 2020. In September as well, Airtel added 2.3 million subscribers while Jio added 1.46 subscribers. However, Jio presently retains the highest market portion in the industry, 35.28% while Airtel is at 28.68%.
8. Asian Paints
Asian Paints started as a small project in a garage in the early 1950s. Now, almost seven decades later, not only has it established its presence in our country but also has its footprints in 20 countries. The stock has returned more than 951% in the last 10 years, as of January 11. Bajaj Finance is one of the top performing stocks in India to buy for the long term.
The State bank of India is India’s greatest leader. The bank has around 24,000 branches in India and around 190 branches across 35 other countries. The bank’s loan book is around Rs 24 lakh crore. Its net NPA proportion has been falling almost sequentially since the quarter ended June 30, 2018. Its net NPA ratio was 5.95% of the gross advances as compared to a net NPA ratio of 1.59% in the second quarter of FY21. Afte the net NPAs peaked at 5.73% of net advances at the end of March 2018, the net NPAs have befallen for both the financial years after that, 3.01% at the end of March 2019, and 2.23% at the end of FY20.
10. ICICI Bank
ICICI Bank proclaimed a strong 3QFY21, led by robust operating performance, while great asset quality trends enabled a decline in provisioning charges. Loan growth is showing a great revival in both Wholesale and Retail, with disbursement in many business segments surpassing pre-COVID levels. Asset quality rests under control.
Time makes your returns compound over time. If you do not withdraw your returns or interest earned midway, you compound returns on an accumulated number rather than just your principle. And, your returns will compound manifold. Time helps us rule out dryness and short-term risks. Try to invest in these top performing stocks in India after consulting with your financial planner and sit back and relax.
Have persistence and let your money grow.
Also Read: 10 Best Mutual Funds to Invest in 2021