Top Stocks for Long-term Investment (3-4 Years Horizon) with High Potential Returns
If you are looking for stocks to hold for such a long time, it clearly indicates that you are willing to invest for the long term and expecting good returns from the same. Here are some of my favorite stocks, which I personally would hold for the next 3-4 years, and would surely give out the best returns in favorable situations.
Stocks with Great Potential
These are the stocks with great potential and would give crazy returns in the forthcoming future.
Larsen Toubro Dr Reddy’s Dr Lal Pathlabs Vinati Organics Pidilite Ltd CoforgeThese are fundamentally strong stocks and would perform well in the long run. For further advice and recommendations, you can join the best stock trading channels on Telegram, such as JackpotTradeX.
Bluechip Stocks
The following bluechip stocks are safe and have moderate potential:
HDFC Bank Axis Bank TCS (Tata Consultancy Services) Reliance IndustriesThese stocks have low risk and moderate potential for returns over the long term.
Large Mid-Cap Stocks
Here are some large and mid-cap stocks that have a higher potential for better returns:
MH (Mahindra Mahindra) Tata Motors Ashok Leyland Bank of BarodaBook your profits from these stocks if you see significant gains in the short term.
ETFs
For a diversified approach, Nifty Bees is an ETF that closely follows the benchmark index of the Indian market, Nifty.
Small Cap Stocks
Small cap stocks should only comprise a minimal percentage of your overall capital allocation.
Bajaj Consumer Care Mishra Dhatu NigamPenny Stocks
Here are some penny stocks that are showing promising signs:
Trident IRFC (Indian Railway Finance Corporation)These stocks are improving their performance and signs indicate that they will perform well in the upcoming years.
Updating Your Portfolio
Based on my analysis, here are some updated recommendations:
Large Cap
Hindustan Unilever Ltd: Good ROE track record: 3 Years ROE of 48.81% Healthy dividend payout of 92.52% Reliance Industries Ltd: High TTM EPS Growth Bullish engulfing pattern Increasing profit margins (YoY)Mid Cap
Voltas: Healthy dividend payout of 27.71% Poor sales growth of 5.73% over past five years Low ROE 12.39 for last 3 years JK Cement: Good profit growth of 28.15% CAGR over last 5 years Healthy dividend payout of 21.47%Small Cap
Bajaj Consumer Care: Good dividend yield of 3.38% Healthy ROE track record: 3 Years ROE of 36.10% Healthy dividend payout of 58.42% Mishra Dhatu Nigam: Improving book value per share for last 2 years Zero promoter pledge Price above short, medium, and long-term moving averagesPenny Stocks
Trident: Healthy dividend payout of 51.08% Rising net cash flow and cash from operating activities Quarterly growth in recent results Increasing revenue every quarter for the past 3 quarters IRFC (Indian Railway Finance Corporation): Trading at 1.03 times its book value Good dividend yield of 4.29% Increasing profit margins (YoY) Improving annual net profits for last 2 yearsInvest wisely and stay informed about market trends. Happy investing!