Indian stock market has thousands of stocks in its holding. These stocks are bought and sold each day by millions of people. No, we cannot buy any stock for investing. Out of all stocks that we have in the market, only a very tiny minority qualifies as a good buy. Hence stock picking must be done with extreme care. The focus should be on best stocks to buy in India for long term. To a novice, it can be overwhelming to identify best stocks. Majority people know only, TCS, Reliance Industries, Infosys etc.
These are big names which are always in news. But in reality, there are more than 5, stocks listed in BSE. So the question arises, which are the best stocks among this list of whooping 5, numbers? The list of best stocks to buy in India are not readily available even on internet. What is advisable is to MAKE ONES OWN LIST. Yes, this is the best way to play the stock market game.
If one could copy others and make money, probably every stock trader in this world would be a millionaire. But the fact is, only the elite makes money in stock market. What makes these people so unique and rare? What makes them succeed among the huge horde of average performing investors?
Their ability to screen the best stocks from plethora of non-performing stocks makes them successful. In this article we will see how to screen best stocks. This way, one can start screening stocks on their own.
Even the best of stocks has vert volatile price movements. But how price can effect ones list of best stock? Best stocks are not only those stocks which has strong business fundamentals.
They must also be available at right price. Hence, when price falls, those stocks which were not attractive earlier becomes attractive. Similarly, when price rises, those socks which were preferable earlier, becomes overvalued, hence move out of the list.
Market price movement of stocks cannot alter the business health core fundamentals of the company, but it effects its market price valuations. When valuation is good, it means stock is trading at price levels below its intrinsic value. When valuation is bad, it means stock is trading at price levels above its intrinsic value. Companies business performance also keep changing from quarter to quarter 3 months. Performance of companies are declared in their financial statements quarterly.
What one must glance at to know if a stock is a good buy or not? Frankly speaking, to identify a best stock, superficial observation is not enough. One must dig deep into companies details. Out of all stocks that trade in Indian stock market, I love those stocks which has high market share in its sector. A combination of high revenue and high market capitalisation ensures that we do not miss out any stocks wich are liked by the market.
For any investor the priority should be to include only highly profitable companies in the investment portfolio. No matter how high is the market share of the company, if its operations are not profitable enough, it will be difficult for the company to maintain its market share. People love to see stocks with high and improving net profits PAT.
But frankly speaking we must avoid focusing too much attention on net profits. High improving PAT is good but its not everything. Yes, now we have a list of stocks which has high revenue, high market market capitalisation, high PAT and high gross margin.
What we know is stocks which has strong business fundamentals. But generally such companies trade at extremely expensive price levels. After all the fundamental checks on the companies, it is essential to look into the price valuation of stocks as well. In order to identify best stocks, price check is essential. It is true that fundamentally strong stocks generally trade at overvalued price levels.
By using this ratio we can even compare two companies of different sectors. But such simplification is not advisable. Do not discard such companies right away.
Calculate its PEG ratio first PE ratio dividend by 5 year EPS growth rate. If PEG is ore than 1, only then you discard it. Since last several years, PEG ratio is one valuation that has worked very well to identify value stocks. I love valuing stocks based on its dividend yield. This is like a litmus test for all stocks.
We must not focus too much on dividend yield itself. What is more important is to check the dividend patter for last 5 years. A stocks which has continuously increased its dividend payout in last five years is very likeable. Now divide this average dividend per share with its current market price.
I have also developed a product which can help you to learn to identify best stocks in totality. Along with fundamental checks, it also analyzes stocks in terms of its price valuation.
Users who are interested to learn the concept of stocks analyses can buy my stock analysis worksheet. Sir I am new in this field. Want to invest to rs every month. Where I invest 1 stock market 2 mutual fund 3 sip Please guide me. I want good return. I have been investing in mutual fund since 4 years and getting good returns also.
Now i want to invest in share also for years …so could you please guide to which company and sector i should invest … please suggest. What is long term and short term How to hold share.
Can i buy or sell share after 1 or 2 days. Hello All, I am new and looking forward to enter in this field, can anyone help me about it? What are the required things to start and enter into stock market, I want to know the requirements, How can I do it online? Do I need any account like DEMAT account?
Hi siri am fresher. I bought tara jewel but it is in loss. Will it come good position. Hi sir, Which stock can i buy now, can you suggest some ideas please. I am ready to hold my sotck up to 1 year time period. Dear Sir ,I am fresher,i want to invest rs per Month in Stock market for long term purpose approx 10 year. HELLO SIR CAN U PLE SUGGEST THE PENNY STOCK BELOW 50 RS SHARE PRICE. Hello Sir, Ragnarok ways to make money want to invest 3 lkh in different stocks for one or one and half year.
Please suggest the best option to go for. Best 3 stocks according to me Escorts ltd, Edelweiss Financials and RBL Bank. Will give good returns in 1 to 2 years.
Can double from long term stocks to invest in india current prices. Hi, I want to know how to start to buy shares, what is the procedures. I am very new to this. Sir, how would you rank 1 Karur Vysya Bank PE around rynek forex praca opinie. Both regular dividend paying companies, conservative management but steadily increasing growth.
Largely missed out by investors it seems……. Sir, as a beginner I want to start with minimum like starting with for short terms. SIR, I WOULD LIKE TO INVEST IN STOCK FOR LONG TERM 10 YEARS RS 50 LKH. PLEASE SUGGEST ME THKS. HDFC GUILT Mutual Fund, HDFC Midterm opportunity mf 2nd: Go for copper market mountain stockhouse fund its safe.
Good one, what is the minimum amount you advice to have a reasonable portfolio of stocks regards MSR. Hi Dear, it seems you forgot the more important facet of evaluation professed for a defensive investor I.
Hope it is added soon for benefit f most investors.
Sir, I am in this field only two years. I want more knowledge in trading Expecting good ideas. Sir iam a small trader I have rs I want to invest for a long term please suggest me some multi bagger stocks a friend suggested me gmr infra. Sir I bought shares of Alok Ind 7. Pl suggest me what will be target in next 1 year. Am thinking of investing in stock first timer.
I have divided the legit work at home jobs that pay weekly frame binary options on the english stock exchanges via the internet waiting into 2 years, 5 years, 10 years and further.
Kindly suggest me stocks accordingly. The companies that i have shorlisted are TCS, TVS, Maruti Suzuki, LIC Housing Finance Ltd. Dont buy as per any sugession, invest as per ur own research. No tips can make u huge profit, otherwise every tips company will become Ambani or Tata in years. I am planning to buy Suprajit Engineering,Minda Corporation,Capital First shares each one 50 thousand planning to buy…can u suggest some one is it good ones?
Great piece of analytics and view. Just sums up the stock investment in one go. Please keep writing such informative blogs. I am having a stock of Suzlon of quantity, purchased 5years back Should I keep this stock for still long term? I want to invest 5 lack for 1 year suggest me best share …what will be excepted value of that stock after 1 year tnx.
Hi, I have bought shares of JP Power RS. Please advice me what to do. Can I hold it for next 10 years? As per experts review by that time 10 years the stock price would be around to range, better you sell units and buy andhra cements which is trading for 8. Very useful information with deep study about so many companies. Really,a Knowledge worthy article. Invest in State bank of india, Andhra cement, Yes bank, ITC limited, Infosys, Sun Pharma, Bajaj Electricals, and trying to concentrate on small and mid caps which gives you good returns in long term investments.
Thanks for sharing your insights. I think NMDC should also be included in your list. Recently I invested a huge amount of money in that stock trailing at It can be a multibagger.
Read the specimen of subscriber mail from my blog favoring the same intent — https: I wanted to invest 5 lacs in 5 stocks one lakh in one stock in long term perspective over 10 years of time. Please advice the stocks. Hi what is your suggestion on SKM egg products stock. Can we add this stock in portfolio. Hello Ketan, SKM Engg looks to be sierra stock market software mac os x new company listed in NSE only last 5 years record is available on internet.
In the last 5 years, its EPS has been as following: If you want to buy this stock, I will suggest you to do a more deeper study of its fundamentals. On face of it, SKM Engg seems to be improving but remains on the riskier side. Hi Mani, Nice article and very well written. Just one suggestion, it would be really nice if you can put the publication date in the first line such that we can figure out the relevance of numbers stated as per current time. Also would like to know how you captured the data and what are the points we as a long term equity holder would look for, beyond the numbers mentioned.
The publication is updated once every month. Thanks for all valuable information. I was going through Financial Technologies and it seems there is some typo error in PEG of this share.
It should be more then 4 Kindly guide me what will be future of this stock. I invested 2 lac in NMDC stock for Rs. Nice work,aparting knowledge to all those having less understanding of share market.
Basic knowledge share market is very important to avoid any major losses. Great job and very good article. LET ME GET UPDATES RELATED TO FINANCIAL MARKET SITUATION FOR INDIAN SHARES. The best all round profitable, debt free, high growth, less cost company share name for long-term. Why to spend time to analyse stocks. It is better to play safe. Best way to enter in stock market is via SIP way or by buying direct mutual funds. Sir, You have done great work. But, I am confused with Your conclusion about HUL and nestle, How can they be power houses if the PEG is so high.
Can anyone provide the feedback. Start Here Products Books Podcasts Guest Post Ask Feedback. Hot Topics June 21, Student loan is tough to get? Other ways to pay for college… June 13, Know about stock market investing… June 8, Common Income Tax Return Filing Mistakes To Avoid May 28, How Do We Cut Budget? May 22, Biggest problems in investing money Search for: Best Stocks to Buy in India for long term in TOPICS: I really appreciate your time.
If you can also put your comments or subscribe us below, it will be an excellent feedback for us. Please also consider sharing posts of getmoneyrich on facebook or twitter I am a Blogger with a passion for investment education. I started blogging in The idea with which I started blogging still stands true. In my starting days my finances remained tight. I was reading heavily about how to manage finance. One day I got hold of a book which my father gifted me in It was stacked below my graduation books.
It was a small-thin book with its cover named "Rich Dad Poor Dad" Mani June 18, at 9: Amit June 20, at What is difference between sip and mutual fund? Arvind May 18, at Hi I am a beginner, trying to invest 10K. Plz suggest which shares to be buy. Mani May 18, at Akhilesh May 17, at 2: Sowmya May 9, at 6: Hi, Can you please suggest me best stock to buy for 1 year. Mani May 10, at 4: D May 3, at D, you can try investing in debt linked mutual funds. Pankaj kumar April 17, at Riyaz April 5, at Govind March 9, at 6: Hello, which penny stock to by for 2 years perspective, planning to invest K?
8 Best Long Term Investment Options in India For - Goodreturns
Junaid Ali February 21, at 2: Sanjay Gupta March 23, at Ambrose February 21, at Thank you so much for making me know the basics of investing.
Usha February 15, at 1: JATIN March 30, at 4: Muthu February 15, at 5: Surender February 11, at 1: Rahul Sikarwar February 10, at 8: Rishika February 9, at 5: Yash Pal January 29, at Dr R S mann January 14, at Very precise post on basic fundamentals of stock market analysis. Debashish January 2, at 9: I buy FEL share 18 rupees. ANIL December 20, at 5: ASHA December 12, at 8: Surbhi Girotra December 1, at 7: C PRABHAKAR RAJU April 14, at Prabhakar November 23, at 1: Mani November 23, at 6: Hello Prabhakar, you can go through this blog post please: KD November 20, at 9: Imran Khan November 9, at Mani November 10, at 7: Deb November 6, at 8: Aditya Mahobia November 4, at 5: Gurudev, AAp ka Jawab nahi.
Bhavesh October 29, at JOHNSON JOSEPH ROZARIO October 21, at 2: PREMSUKH VYAS October 19, at 3: I want to invest five lacs for longterm like 5 years. SATBINDER SINGH September 20, at 8: Hi mani please suggest some share for long term investment Thanks.
Pavan September 8, at 7: I had an amount of Gaurav Gupta October 18, at M S Raghavan June 18, at 8: Mounish September 1, at 8: Please update the analysis for the month of September We are looking for new ideas. Upinder Singh August 26, at 1: David Stephen August 25, at Mahesh August 2, at 4: Sangameshwar Vishwanath August 1, at 2: Mintu July 30, at Sid July 27, at 4: Dear Sir Am thinking of investing in stock first timer.
Ramu July 16, at 4: Value Investor July 15, at 6: Guru July 14, at Hello Sir, I am having a stock of Suzlon of quantity, purchased 5years back Vijay July 10, at 6: I have bought shares of icici bank what about its future can it be a multibagger?
JAIN June 25, at 1: Amitesh Jha June 21, at 6: Bala July 9, at 7: Ram Waru June 16, at 7: Prahladnayak June 15, at I want to invest for five years please suggest me best 3 companys. Bala July 9, at 6: Sowmay June 13, at 2: Ronnie June 4, at 8: Sampath Kumar Patel Midivelli May 23, at Mani Garu, I wanted to invest 5 lacs in 5 stocks one lakh in one stock in long term perspective over 10 years of time. Ketan patel May 22, at 8: Mani May 23, at 7: Ketan Patel May 24, at 9: A Mohapatra May 16, at 3: Mani May 16, at 4: Arun May 15, at 3: Hi Mani, Thanks for all valuable information.
Mani April 22, at Jignesh Mehta February 11, at 9: Nandkumar January 27, at 5: GYAN SINGH FLORA December 23, at 9: Aman Walia November 21, at Sandip Malakar August 9, at 8: Santanu February 11, at 4: Blogger February 12, at 3: But right analysis can give better returns in long term.
Long term Stock Investment Tips India - Best Indian stocks for long term
Mani January 10, at Can anyone please let me know that CIL is coal India ltd or something esle? Blogger January 11, at 3: Mani January 5, at 3: Mani January 2, at Leave a comment Cancel reply Your email address will not be published.
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