Best Long-Term Stocks to Buy in India: A Guide for 2024 and Beyond

Imagine waking up ten years from now, opening your investment portfolio, and realizing you've multiplied your wealth many times over without lifting a finger. That's the dream of long-term investing. But here’s the secret: The stocks you choose today will define that dream.

What makes a stock a good long-term investment in India? It’s a combination of strong fundamentals, scalability, innovation, and market leadership. In this article, we'll break down the best stocks in India, focusing on companies that are poised to thrive in the coming decades. We’ll also look at data, trends, and what historical performances suggest.

1. Reliance Industries (RIL):

Reliance is undeniably a powerhouse in India. From its traditional businesses in oil refining and petrochemicals to its rapid expansion in telecom (Jio) and retail, it’s positioned to tap into multiple high-growth sectors. Let’s break down the key reasons why Reliance is a top long-term pick:

• Diversified Business Model: Reliance's foray into telecom with Jio has revolutionized India's digital economy. With over 400 million subscribers, Jio is a giant in telecom. On the other hand, Reliance Retail is expanding rapidly, positioning itself as a major player in India’s consumer market.
• Innovative Leadership: Mukesh Ambani’s vision to create a digital India has driven the company’s innovation. Reliance is not just reacting to trends; it’s creating them.
• Financial Strength: Reliance has a market capitalization of over ₹15 lakh crores, making it one of the biggest companies in India.

Data Table: Reliance Industries Key Financials

Year	Market Cap (₹ in lakh crores)	Revenue (₹ in crores)	Profit (₹ in crores)
2020	10.5	6,59,205	53,739
2022	15.1	7,92,756	67,845
2024 (Est.)	18.3	9,50,000	75,000

2. HDFC Bank:

India’s largest private sector bank has shown resilience, growth, and innovation. With a wide network and solid financial performance, HDFC Bank is one of the safest bets for long-term investors.

• Consistency: HDFC Bank has maintained an impressive track record of low NPAs (non-performing assets), strong net interest margins, and consistent loan growth.
• Growth in Digital: HDFC’s digital-first approach has attracted millions of customers. Its focus on digital banking makes it future-proof, particularly as India embraces a cashless economy.

3. Tata Consultancy Services (TCS):

TCS is a major player in IT services globally, not just in India. With a growing market for IT services and software, TCS has continued to scale up while maintaining profitability.

• Global Presence: With clients in more than 50 countries, TCS has diversified its revenue streams and mitigated risks tied to the Indian economy.
• Consistent Dividend Payouts: TCS has a robust dividend payout history, making it a favorite for income-seeking investors.

4. Asian Paints:

What’s a paint company doing on this list? The answer lies in its monopoly-like dominance in the decorative paints market. Asian Paints is not just about paints—it’s about capturing India’s growing middle-class aspirations.

• Brand Loyalty: With over 60% market share in decorative paints, Asian Paints has an unshakable brand loyalty in India.
• Innovation and Expansion: Asian Paints is leveraging technology to optimize its supply chain and improve customer service, ensuring it stays ahead of the competition.

5. Infosys:

Another tech giant, Infosys, has proven itself as a long-term wealth creator. Its digital transformation business has shown strong growth, and it continues to be a leader in the global IT space.

• Strong Financials: Infosys has a solid balance sheet, with no debt and a robust cash reserve.
• Growth in AI and Digital: Infosys’s investments in AI, automation, and cloud services make it a top pick for investors looking for exposure to the future of technology.

Data Table: Infosys Key Financial Metrics

Year	Revenue (₹ in crores)	Net Profit (₹ in crores)	EPS (₹)
2020	90,791	16,594	36.42
2022	1,23,936	22,146	52.74
2024 (Est.)	1,45,000	28,500	65.30

6. Bajaj Finance:

One of the leading NBFCs (Non-Banking Financial Companies) in India, Bajaj Finance has demonstrated extraordinary growth in the retail lending space.

• Diverse Lending Portfolio: Bajaj Finance offers a wide array of lending products, from personal loans to consumer durable loans, and has expanded into wealth management and insurance.
• High RoE (Return on Equity): With an RoE consistently above 20%, Bajaj Finance has been a favorite among long-term investors.

7. Hindustan Unilever (HUL):

A leader in India’s FMCG sector, HUL has an extensive portfolio of brands that are household names. In a country like India, where the middle class is rapidly expanding, demand for consumer goods is set to soar.

• Brand Power: HUL’s brands, such as Lifebuoy, Surf Excel, and Dove, dominate the market.
• Rural Expansion: HUL is targeting rural India, which represents a massive untapped market for FMCG products.

8. Avenue Supermarts (DMart):

In just a few years, DMart has become a dominant player in India’s retail market. Its model of offering deep discounts has resonated with India’s cost-conscious consumers.

• Scalable Business Model: DMart has mastered the art of operational efficiency, which has led to high profit margins and the ability to offer products at a lower price than its competitors.
• Store Expansion: With plans to open more stores across India, DMart is primed for long-term growth.

9. Adani Green Energy:

If you’re looking to invest in renewable energy, Adani Green is a great option. As the world shifts toward green energy, companies like Adani Green are leading the charge in solar and wind power.

• Massive Capacity Expansion: Adani Green is expanding its renewable capacity, aiming to be the world’s largest renewable energy player.
• Sustainability Focus: With global warming concerns on the rise, Adani Green’s focus on sustainability is likely to drive future growth.

10. Dr. Reddy’s Laboratories:

Pharmaceutical companies like Dr. Reddy’s are becoming increasingly crucial in a post-pandemic world. The company is heavily investing in research and development, especially in biosimilars and generics.

• Global Reach: Dr. Reddy’s exports its products to over 60 countries, including the US, Russia, and South Africa.
• Pipeline of Drugs: Dr. Reddy’s has a robust pipeline of drugs, including biosimilars and complex generics, which could provide a significant growth runway.

Conclusion:
The Indian stock market is brimming with opportunities for long-term investors. Whether it's tech, finance, FMCG, or renewable energy, India’s growth story is just beginning. Diversification is key, and the stocks listed above provide exposure to various high-growth sectors, ensuring that your portfolio grows consistently over the long term.