High quality dividend stocks are always the best investments for long term investors. In India, there are thousands of shares that one can buy on one day and sell on the other day. It would always be overwhelming to identify the right stock or identify the best stock for long term investment.
As long term investors, people always look for such business where there will be consistent cash flow, excellent balance sheets and have numerous chances for long term earnings. Take a closer look at the wonderful dividend stocks that are known for appropriate long term investors.
Best Stocks for Long Term Investment in India:
Following are some of the top blue chip stocks that play a major role in Indian economy and dominate the Indian market.
1) HUL: HUL also called as Hindustan Unilever Limited is known for personal care products, food, cleaning, beverages, etc. It is leading FMC product in India and a market leader with good presence in different categories. The company is performing its best since couple of years and its stock price is increased by 200% over past 5 years. Its profit margin and revenue margin has also increased this year compared to past.
2) Ultra Tech Cement: Ultra Tech Cement is one among the leading cement manufacturing company and also the largest exporters of cement clinker. It is also a part of Aditya Birla Group of Companies. As major infrastructure projects are in pipeline, the demand for this company has been increasing. Past performance is extremely good and the stock exchangers can definitely get receive good returns for their stocks.
3) BPCL: BPCL is Indian Gas Company that operates two large oil refineries in India. The company is into exploration, production and retailing of petrol related products. Apart from petrol, it also offers a wide range of products like automotive engine, gear, oil, transmission oil, etc. You can expect a positive impact on revenue from the company because it is investing Rs. 1 trillion for its expansion during the years 2016 – 2021.
4) Asian Paints: Asian paints also occupy the one of the place in 10 Best Stocks to Buy in India. It deals with wide range of paints, varnishes and synthetic resins. The company is holding a major position is domestic color share market. The company is performing extremely well from past few years and you can definitely benefit from it in the future years because there is upcoming boom in terms of smart city projects.
5) HCL Tech: HCL Tech is one among the leading IT companies in India and it deals with IT infrastructure management, application development, BPO, etc. The company is generating positive returns for its investors from the first and from past five years the stock has increased by 200%. The financial performance and the revenue of the company doubled twice and the return on equity is also very good.
6) Indus Ind Bank: Picking the stock from banking sector is always the best and smart way for stock investors. Coming to Indus Ind Bank, it is one of the leading private sector banks and is giving magnificent returns to investors. In the last five years, the stock has increased by 250%. The financial performance of the bank is good and the net profit has tripled over past 5 years.
7) Sun Pharma: The other best and long term stock is also an other pharmaceutical company Sun Pharma. Sun Pharma is manufacturer of drugs for diabetes, cardiology, etc. It was acquired by Ranbaxy. Since then the company has become the 5th largest pharmaceutical company in India. The income is likely to see decent growth and profitability in future. Hence it is recommended to invest on this stock if you planning for long term.
8) Lupin: Lupin occupies the third place and the best company recommended for long term investment. It is leading pharma company in India that is producing different types of drugs and other pharmaceutical products. The company has global presence and it also spends lot of money on research & development. It has done number of acquisitions and is dealing with number of monopoly products. Its past performance is excellent and has high growth rate, debt free balance sheet, good working capital management, etc.
9) AurobindoPharma: The other best stock for long term investment is AurbindoPharma and it occupies second position in the list. It is leading Indian pharma manufacturing company and has good presence nationally & internationally. It is generating magnificent returns from past few years. Apart from this, the balance sheet of the company is also very strong and the profit margin has tripled over past five years. The company has its presence in more than 120 countries.
10) Eicher Motors: Eicher is definitely the first and the best stock that is identified for long term investment. Eicher is one of the best automotive company of India and it runs multiple businesses such as commercial vehicle, motorbike etc. This company is consistently performing well and is making good returns even now. The company constantly concentrates on new innovation and also modifies the products as per the public demand. The company is giving good returns to investors and you can also expect a better return in future.