Best Stocks to Buy in India for Long Term

The single greatest edge an investor can have is a long-term orientation.

Seth Klarman

If you invest in stocks for the long-term, you make more money(typically). This is because of a simple reason, you avoid taxes and brokerage fees. Even a small 1% difference in CAGR can lead to humongous differences in the size of the final corpus. 

We have provided below a list of stocks that in our opinion are long term wealth creators:



This company has either haters or lovers – it does not stay in between.

 We believe the company has potential and at this price, it is a bargain. The conglomerate dominates the cigarette industry with over 86% market share, it competes with Britannia and Parle in the biscuit category. Has an IT services division that earns supernormal profits and the management has shown not just ambition but also the competence to fulfill those ambitions. 

The businesses had been generating revenues but profit generation was the tough part but now the margins are improving for the company. The company is delivering higher ROCEs and is giving birth to ‘spawners’ – small businesses that don’t cost much but generate abnormal profits. 


This company turned a 1lakh investment to more than 1Cr in 10 years – we are sure the story is not over.

 Astral is a brand in CPVC pipes and is a large player in the entire industry. Aside from this, the company has recently forayed into the Adhesives industry and with its already established distribution network, it would be easy to gain market share. 

The company does not shy away from spending on marketing and this became evident when they hired Salman Khan to promote their brand. Their competitive advantage lies in the fact that they have a special place in the mind of the Carpenter.

Radico Khaitan(RADICO)

This company, in our opinion, might be one of the biggest wealth creators in the coming decade. If anyone wants to see the importance of good management, look no further than this company. The new management brought down debt, the ROE has gone up significantly and so have earnings. Not only are they becoming more efficient(proxy being a higher ROCE) – they are also launching new products. 

The company has over a 50% market share in the vodka market(budget) with their product – Magic Moments but is also looking to gather market share in the upper segment via their newer products. 

METROPOLIS / Dr. Lal Path Labs

These are two different companies that are leading the way in diagnostics.

The reasoning is fairly simple: 

The overall diagnostics industry is huge and the formal industry forms a part of it. The diagnostics form a mere 15% of the organized industry whereas mom-and-pop shops are about 50%. These shops are going to lose market share to large organized players with free cash flow. 

Diagnostic stocks being the Best Stocks for Long Term

These two companies act as a proxy to capitalize on the forthcoming growth. The companies have excellent management, FCF and a vision. Their businesses have been set up – while Dr. Lal dominates North India, they are heading into East India and Metropolis has a scattered presence pan-India. 


The modern-day profitable business with a terrific management team, need I say more? 

While the company’s valuation might be a little stretched at this point, this can be one of the “consistent compounders” in the future. 

The business is hybrid in nature so has lower working capital requirements. Also, Nykaa is the sole supplier of certain luxury goods that provide high margins and therefore, give the company a fantastic competitive advantage. 

Nykaa, in our opinion, might become a household name in the future because it has huge tailwinds. People prefer buying online instead of going to a shop and hassle through a limited range of products. Their competitive advantage lies in the fact that they have a special place in the mind of the Carpenter.


This business is a beast

Not only is it a monopoly, but it is also a platform business with networking benefits and thus, has an (almost) impenetrable moat.

The company has extremely high ROEs and ROCEs and it would be fair to say that they don’t know what to do with the high amounts of cash they get in hand. 

The management dividends the profits out so this stock might be a good investment for dividend hunters. 

Multibagger Stocks

The list has been formulated after carefully analyzing the businesses, reading their financial statements, their concall transcripts, etc. This is by out understanding – a list of best stocks for the long term. This list is not a “consistent compounder” list – these are companies that are either mispriced opportunities like ITC or companies with a long runway ahead of them like Metropolis. 

It includes past multibaggers like Astral and long-term performers like ITC, overall, the list can give you upwards of 20% return. The key to making money is to focus not on ‘multibaggers’ but on consistency which these stocks are likely to show. That is the secret to making money in stocks in the long term – not to focus on chasing multibaggers but compound consistently.

Disclaimer: the views expressed by the writer are their own and not of the website or the management. The writers may or may not have a stake in the mentioned companies. Readers are requested to consult a SEBI registered investment advisor and make a decision accordingly.

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