Best Stocks to Buy in India for long term in 2018

Indian stock market has thousands of stocks available for trading.

These stocks are bought and sold each day by hundreds of people. But is it good to pick ANY stock and start trading?

No, we cannot buy any stock and expect to make profit. 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 to buy best stocks available in stock market.

In general, which stocks can be considered as best? The are such stocks which one can hold for long term. Warren Buffett buys stocks to hold them “forever”.

To a novice, it can be overwhelming to identify best stocks to buy. This is where this blog post will help the readers to understand how to pick the best stocks.

Majority people in India knows only, TCS, Reliance Industries, Infosys etc. No doubt these are best stocks.

But this is also true that there are other names which can also be tagged as best stocks.

Which are those stocks?

The big names like RIL, TCS, WIPRO are always in news, but what about those stocks which are not as popular?

Is is good to buy only popular stocks?

On the contrary, experts say that one must be very cautious while buying popular stocks. This is because, popular stocks generally trade at overvalued price levels.

There are more than 5,000+ stocks currently trading in Indian stocks market (BSE).

So the question arises, which are the best stocks among this list of whooping 5,000+ numbers?

Investment Gurus often talk about the two (2) basic screening criteria to identify best stocks for investing as shown in below pictorial representation.

Best stocks to buy

For stock speculators, this concept is not important. But long term investors can bi-heart this concept like a bible.

Ok, so now we have the concept. We have mugged-it-up, and we feel strong. But where is the list of best stocks to buy?

You might have noticed that the list of best stocks are not readily available even on internet.

You know what is the problem? The problem is no body knows it. Yes not even me.

If best stock is gold, then investors are like miners. They have to do some digging-in to extract the gold.

In this blog post, we will try to learn how to unearth this gold, our own list of best stocks.

Yes, you heard me right, I am suggesting all my readers to have their own list of best stocks.

It is advisable to MAKE ONES OWN LIST of favorite stocks.

Why?

Because this is the best way to play the stock market game. Having ones OWN list of best stocks is one sure foot-forward towards becoming a successful stock investor.

If one could copy others and make money, probably every stock trader in this world would have bean millionaire by now. But the fact is, only the ELITE make money in stock market.

What makes an investor rise to the stature of ELITE? Their skill to find the best stocks on their own.

The ability of a person to screen the best stocks from plethora of non-performing stocks can makes them a very successful investor.

In this article we will see how to screen best stocks. This way, one can start screening stocks on their own.

Lets take a small example. What are the top two stocks in Indian stock market presently? RIL and TCS. These are those stocks which has the largest market capitalization compared to other stocks. So are these stocks best?

If these two stocks are the best, why banks, insurance companies, financial institutions, foreign investors etc are also buying others stocks?

There is not doubt that the underlying business of TCS and RIL are rock solid. But as these are the most popular stock of Indian stock market, they are very-very overvalued.

So what does this example conclude?

When we are busy buying popular stocks, experts like mutual fund managers, are busy buying stocks of other good business which are not so popular.

And why they do like this?

Because less popular stocks are available at comparatively better price levels.

It is absolutely essential to know that, we cannot buy stocks at overvalued price levels and expect to make profits. Even if the stock is of Apple, Microsoft, Google etc, one will not make profits till the stocks are bought at undervalued price levels.

Then how traders make money? They do not think about stock valuation!

Yes traders do not think about market price valuation. Their way of making money is different. They ride on the stocks price momentum to make money. But the problem with this theory is that, it closely resembles GAMBLING.

Gambling is too risky. Real investors in the Market do not gamble with stocks.

http://www.getmoneyrich.com/product/stock-analysis-worksheet/

So how a common man should invest in stocks?

Make your own list of favorite stocks and track then using investment portfolio tracker.

But why we must use a portfolio tracker?

Which stocks must come in our list of best stock? These are those businesses which has strong business fundamentals.

Any business which has strong fundamentals invariably comes under the radar of professional fund managers. Once the fund managers target a stock, it starts becoming overvalued.

Hence, though these stocks represent a good business, one cannot buy them till their price falls

When price falls, those stocks which were not attractive earlier becomes attractive. Similarly, when price rises, those socks which were preferable earlier, becomes overvalued.

How to track these price falls-and-rise easily?

The investment portfolio tracker helps people like us to keep a track of market price of our favorite stocks.

Buying stocks whose price is falling is ok?

Market price movement of stocks cannot alter the business health of a fundamentally strong 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.

How often one must re-check the list of best stocks?

Companies business performance keep changing from quarter to quarter (3 months). Performance of companies are declared in their financial statements (quarterly).

This is the time when we can recheck our list of best stocks.

But if this is too frequent, updating ones list at least once a year is also not so bad.
Every change in companies ‘quarterly reports’ and ‘market price’ will reflect on our ‘list of best stocks’.

How to identify stocks doing good business?

This is my favorite topic.

There are host of financial ratios using which one can estimate if a company is doing good business or not.

But what we are going to discuss here is slightly different.

This method is easy and I suppose any one can use it to prepare ones own list of best stocks.

We will consider a stock good only if it is a sector leader. Why does it mean?

Lets take an example to understand this point.

Suppose there is a business sector called “Metal and Mining”. In this sector there are several companies doing their business.

But the top 2 companies which stand out of others (in terms of market capitalization) is Hindalco and NALCO.

So for us, these two companies will come in our list of best stocks.

Please note this point that, here we are not screening stocks on market cap alone.

Our bigger purpose is to identify Sector Leaders.

A company which is leading its sector while doing business deserves to be in our list of best stocks, right?

Best stocks to buy

I personally find this method of stocks screening very effective.

The Sectors that I consider to screen my stocks are as listed below (reference: Investing.com)

Best stocks to buy

Whenever one finds any of the stocks of above sector/industry experiencing a major price dip, he/she must become aware.

The next step is to open the stocks last 10 years financial report to do a more in-depth stock analysis.

If everything comes out well here, one can proceed and buy that stock.

This form of stocks investing is considered nearly fool-proof.

Good business will also have a wider moat

What it means by wider moat?

The Moat is term which is used extensively by Warren Buffett.

In English language, moat is defined as a hole which is normally dug around forts, and it is also filled with water. Such an arrangement provides an hindrance to the attackers. Means, any fort which has such a moat surrounding it, will make it extremely difficult for the attackers to enter and capture the fort.

Similar analogy is drawn with respect to a company. A company enjoying wide moat means, future potential of its business is well protected.

What can protect future potential of a company?

Things like, unique products, patents, skilled workforce, brand name, after sales service etc, ensures future growth of company.

A company which displays these characteristics is said to be enjoying a wide moat.

Questions to be asked by the investor to identify best stocks

#1. What is the size of the company? How big is the company?

Generally speaking, we would like to buy stocks of which companies? Big, stable, famous companies, right?

So how to identify these companies?

There are many ways of doing it, but I prefer to screen companies based on its market capitalisation.

This stock metric is not only easily available, but it also encompasses lot of other technical and fundamentals aspects of the business within it.

#2. The company is keeping its debt levels low or not?

This is tricky. Particularly for common men like us, it is not easy to interpret if the company is carrying too much debt.

But lets take a small analogy to get the concept right.

Suppose there are two companies A & B. A has a debt of Rs.10 Crore and B has a debt of Rs.20 Crore. Which company looks better here? If we have to look only at debt levels, Company A looks better.

Now suppose, Networth of A is Rs.10 Crore and Net worth of B is Rs.20 Crore. Means, the debt equity ratio (D/E) of A is 1 (10/10) and that of B is also 1 (20/20).

So which company is better? Debt/Equity ratio being a very reliable debt burden indicator is not able to differentiate between A & B. What to do?

There is a way out.

Suppose Company A and B has a cash/Cash equivalent reserves of Rs.4 Crore and Rs.25 Crore respectively.

Debt – Cash for Company A is = Rs.6 Crore (10-4).

Debt – Cash for Company B is = Rs.-5 Crore (20-25).

A negative value for Company B indicates that company is having enough cash to pay-off all its debt.

Hence, even if the company B is carrying far higher debt than A, but still it is a far secure bet for the investors.

How to know if the companies “Debt-Cash” component is negative or what?

We will have to take help of Enterprise Value and Market Capitalisation.

Enterprise Value minus Market Capitalisation = Debt – Cash

#3. How profitable is the company?

To understand the profitability levels of the company, we will dig into their operating margins (OM) and return on equity (ROE).

Operating margin will highlight the efficiency of companies operating practice, compared to others.

Return on equity will highlight if the company utilising the shareholders funds well or not, compared to others.

#4. How fast is the company growing?

It is important to keep an eye on the potential growth prospects of the company.

Investors would not like to buy shares of a large but half-dead elephant.

So what to do?

The solution is simple, check the companies last five years sales, EPS and Networth (book value) growth.

The faster is the company growing, the better.

#5. Current price levels of company is good for buying?

This question is easier to ask, but its answer is not that simple. In fact, this is perhaps the most difficult part of the stock investing.

It is possible to approximately judge price valuations of a company by the use of Ratios. But it is not so effective.

What is actually required here is a REAL SKILL. The skill to calculate the companies intrinsic value. But yes, this is not easy.

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 stock analysis can buy my stock analysis worksheet.

For people who does not want to go into those details calculations, use of financial ratios like P/E, P/B, PEG works well.

But I will like to introduce few not so know rations, which are extremely powerful for price valuation of stocks.

#5.1. Price Valuation – Enterprise Value and Ebitda Ratio?

Enterprise value is used here instead of Market Capitalization.

Market capitalization just reflects the price of company trading in the stock market which an investor must pay to buy its share. (P.Note: Market capitalization / number of shares outstanding = market price).

But enterprise value reflects the actual cost of the company, that an investor must bear if he buys the shares of the company. (P.Note: Enterprise Value / number of shares outstanding = market price).

At times, when Debt-Cash is negative, actual cost to investor is less than the price he has paid. When when Debt-Cash is positive, actual cost to investor is more than the price he has paid.

[If you want to know more about Enterprise value, check this link….]

Hence, the use of the ratio Enterprise value dividend by Ebitda will be a more realistic figure to look at to know if the company stocks are trading at overvalued levels or undervalued levels.

#5.2. Market Capitalization and Free Cash Flow  Ratio?

A company which is generating more free cash flow is good for the investors.

Comparison between market cap and free cash gives a very realistic picture of the present price valuation of the stock.

#6. How much returns the company has generated for its investors in the past?

Returns for investors is generated in three ways, dividend payout, bonus shares, and price appreciation.

Looking at past 5/10 years data of the company, gives a clarity to investors that if the stock/company has made money for its investors or not.

Though for value investors, looking at past price and bonus issues, are not as interesting, but it is still worth looking at…right?

I believe so….

Best Stock to Buy in India for long term

(Updated as on January’2018)

Size of Company and its Debt Levels

SL Company Sector Size of Company Market Cap (Cr) Enterprise value Minus Market Cap (Negative is better) Debt Equity Ratio
1 Ajanta Pharma Ltd. Healthcare-Drugs & Pharma Mid Size 13214.94 -230.79 0
2 Arrow Greentech Ltd. Chemicals-Plastic Packaging goods Small 615 -43.43 0
3 Cupid Ltd. Healthcare-Drugs & Pharma Small 428.65 -19.04 0
4 Tata Elxsi Ltd. Technology-Computer Software Mid Size 6498.24 -251.53 0
5 Vakrangee Ltd. Technology-Computer Software Large 47460.85 -459.74 0.07
6 La Opala RG Ltd. Construction-Glass & Glassware Mid Size 3443.22 -134.75 0
7 eClerx Services Ltd Services-Misc.Other Services Mid Size 6179.47 -605.99 0
8 Tata Consultancy Services Ltd. Technology-Computer Software V.Large 533799.09 -45496 0
9 Avanti Feeds Ltd. FMCG-Marine Foods Mid Size 11685.11 -351.32 0.03
10 Vardhman Holdings Ltd. Textiles-Cotton & Blended Yarn Mid Size 1843.3 -334.41 0
11 Stovec Industries Ltd. Engineering-Industrial Machinery Small 706.24 -27.04 0
12 Multibase India Ltd. Chemicals-Plastic Resins Small 861.06 -27.39 0
13 Maruti Suzuki India Ltd. Automobile-Cars & Multi Utility Vehicles V.Large 285776.8 -1718.7 0.01
14 Indraprastha Gas Ltd. Energy-Crude Oil & Natural Gas Mid Size 22869.03 -1026.46 0
15 Fiberweb India Ltd Chemicals-Other Plastic Prod. Small 510.91 -21.52 0
16 Whirlpool Of India Ltd. Cons Durable-ACs & Refrigerators Mid Size 19420.27 -1058.95 0
17 Allsec Technologies Ltd. Services-BPO Services Small 673 -89.59 0
18 Suven Life Sciences Ltd. Healthcare-Drugs & Pharma Mid Size 2676.11 -239.27 0.11
19 Britannia Industries Ltd. FMCG-Bakery & Milling Prod. Large 56493.23 -171.05 0.05
20 Indian Toners & Developers Ltd. Chemicals-Dyes & Pigments Small 416.63 -22.55 0

Profitability and Growth

SL Company Operating Margin (%) ROE (%) 5 Year Revenue Growth 5-Year EPS Growth 5 Year Book Value Growth
1 Ajanta Pharma Ltd. 35.94 36.75 23.97 45.62 39.33
2 Arrow Greentech Ltd. 75.65 40.75 67.4 96.44 44.81
3 Cupid Ltd. 41.74 46.97 26.13 98.22 22.44
4 Tata Elxsi Ltd. 23.45 36.69 19.1 38.55 24.21
5 Vakrangee Ltd. 23.78 29.28 24.21 134.44 115.61
6 La Opala RG Ltd. 33.53 21.73 17.99 33.01 36.3
7 eClerx Services Ltd 36.78 30.67 22.98 16.67 28.2
8 Tata Consultancy Services Ltd. 30.97 33.64 19.26 20.24 23.62
9 Avanti Feeds Ltd. 12.94 42.93 47.35 46.42 43.01
10 Vardhman Holdings Ltd. 101.53 4.48 69.64 27 21.15
11 Stovec Industries Ltd. 22.27 30.67 25.66 36.4 17.17
12 Multibase India Ltd. 24.39 23.05 16.85 43.36 21.33
13 Maruti Suzuki India Ltd. 18.58 21.68 13.54 33.72 17.75
14 Indraprastha Gas Ltd. 26.61 19.48 8.67 13.26 18.95
15 Fiberweb India Ltd 15.43 22.47 18.65 35.78 23.13
16 Whirlpool Of India Ltd. 14.26 23.44 8.2 20.48 25.5
17 Allsec Technologies Ltd. 21.5 50.88 12 41.23 8.64
18 Suven Life Sciences Ltd. 27.63 13.81 21.63 51.13 39.38
19 Britannia Industries Ltd. 15.78 37 10.54 34.56 45.61
20 Indian Toners & Developers Ltd. 27.29 24.02 13.04 20.83 14.94

Price Valuation

SL Company Enterprise Value / Ebidta Price / Sales P/E P/B PEG (5Y)
1 Ajanta Pharma Ltd. 18.92 6.57 27.34 7.35 0.60
2 Arrow Greentech Ltd. 16.06 11.12 23.2 5.84 0.24
3 Cupid Ltd. 11.26 5.07 19.82 7.27 0.20
4 Tata Elxsi Ltd. 19.46 4.99 33.28 10.75 0.86
5 Vakrangee Ltd. 44.36 9.54 74.07 20.26 0.55
6 La Opala RG Ltd. 31.97 13.05 54.37 7.67 1.65
7 eClerx Services Ltd 12.73 4.68 18.78 4.51 1.13
8 Tata Consultancy Services Ltd. 13.7 4.42 20.91 6.59 1.03
9 Avanti Feeds Ltd. 17.79 3.76 30.12 13.71 0.65
10 Vardhman Holdings Ltd. 6.96 8.18 8.71 3.7 0.32
11 Stovec Industries Ltd. 15.28 3.29 28.36 6.69 0.78
12 Multibase India Ltd. 32.68 8.56 53.32 11.73 1.23
13 Maruti Suzuki India Ltd. 21.36 3.59 38.13 7.48 1.13
14 Indraprastha Gas Ltd. 19.91 5.12 37.55 7.21 2.83
15 Fiberweb India Ltd 21.14 3.53 24.87 5.09 0.70
16 Whirlpool Of India Ltd. 29.7 4.17 57.8 11.79 2.82
17 Allsec Technologies Ltd. 7.84 1.96 10.45 3.68 0.25
18 Suven Life Sciences Ltd. 12.44 4.92 21.3 3.38 0.42
19 Britannia Industries Ltd. 37.92 6 62.19 19.64 1.80
20 Indian Toners & Developers Ltd. 18.23 5.91 25.05 2.7 1.20

Historic Returns

SL Company Sector Size of Company Market Cap (Cr) Return for Investors in Last 5 Years Return for Investors in Last 10 Years
1 Ajanta Pharma Ltd. Healthcare-Drugs & Pharma Mid Size 13,214.94 69.95 60.15
2 Arrow Greentech Ltd. Chemicals-Plastic Packaging goods Small 615.00 113.72 30.12
3 Cupid Ltd. Healthcare-Drugs & Pharma Small 428.65 99.36 28.74
4 Tata Elxsi Ltd. Technology-Computer Software Mid Size 6,498.24 55.24 23.24
5 Vakrangee Ltd. Technology-Computer Software Large 47,460.85 67.30 54.62
6 La Opala RG Ltd. Construction-Glass & Glassware Mid Size 3,443.22 62.65 52.00
7 eClerx Services Ltd Services-Misc.Other Services Mid Size 6,179.47 23.48 24.03
8 Tata Consultancy Services Ltd. Technology-Computer Software V.Large 533,799.09 16.25 18.80
9 Avanti Feeds Ltd. FMCG-Marine Foods Mid Size 11,685.11 140.24 74.84
10 Vardhman Holdings Ltd. Textiles-Cotton & Blended Yarn Mid Size 1,843.30 58.10 34.37
11 Stovec Industries Ltd. Engineering-Industrial Machinery Small 706.24 54.77 31.83
12 Multibase India Ltd. Chemicals-Plastic Resins Small 861.06 71.28 29.38
13 Maruti Suzuki India Ltd. Automobile-Cars & Multi Utility Vehicles V.Large 285,776.80 43.25 26.49
14 Indraprastha Gas Ltd. Energy-Crude Oil & Natural Gas Mid Size 22,869.03 45.46 26.99
15 Fiberweb India Ltd Chemicals-Other Plastic Prod. Small 510.91 124.88 46.81
16 Whirlpool Of India Ltd. Cons Durable-ACs & Refrigerators Mid Size 19,420.27 40.40 40.97
17 Allsec Technologies Ltd. Services-BPO Services Small 673.00 40.86 13.37
18 Suven Life Sciences Ltd. Healthcare-Drugs & Pharma Mid Size 2,676.11 47.35 15.81
19 Britannia Industries Ltd. FMCG-Bakery & Milling Prod. Large 56,493.23 57.14 30.73
20 Indian Toners & Developers Ltd. Chemicals-Dyes & Pigments Small 416.63 82.12 25.74


Disclaimer: All blog posts of getmoneyrich.com are for information only. No blog posts should be considered as an investment advice or as a recommendation. The user must self-analyze all securities before investing in one.

142 Comments on "Best Stocks to Buy in India for long term in 2018"

  1. A very good and honest effort. I learnt some new things. I feel, we should wait for the better stock in falling market.

    Good article..

  2. Good article with sincere advice. Not got written by Big people for ulterior motives.

  3. I appreciate all your effort.I have been a investor in to MF for last 2 years not knowing how to read stock market. But with the help of your website I sure I am getting a grip of it and have been investing in to stocks. Thanks for all your help.

  4. Can I get a excel sheet connected to Sql or access sheet wherein I manage my portfolio and it provides me every possible financial info (Numbers on like Mkt Price, EPS, Divi Yield) with on refresh and manage data for me on daily basis?

  5. Extremely well written article Mani Sir. I have been doing MF through SIP for the last 3-4 years. Now want to invest in stock/share market. I want to invest an amount of 1 lakhs now. It would be really nice of if you could suggest me some 5 good companies. My plan is long term investment. Minimum 7-8 years, could be long also.

  6. Mani,
    Thanks for the zeal and effort which you put here with right approach.
    You summarized the financial funda’s in simple and sublime manner.
    I would advise you to come up with undervalued hidden gems, which can be availed by your audience.
    While casting a cursory glance on your work, all companies are well matured with proven track records and also having high CMP.
    It would be a wise attempt if you could pen down mid/small cam multibaggers……
    Give a second thought…….

    Regards
    P.Madhav

  7. I am new to stock trading. Have read numerous articles and books on the same. But nothing comes even close to your article. Thanks for the wonderful info.

  8. surya prakash verma | October 17, 2017 at 9:36 pm | Reply

    Sir,
    while i was doing Research of the companies , following the the process you told above, i choose to analyse Energy segment first……….where i found the avg P/E is 34 approx
    here surprisingly i saw few companies having good EPS and low P/E , and still i saw huge down fall in there share price……… example Jaihind Projects Limited (EPS 31, P/E is 0.19) in the first look i thought , great here is a very low evaluated stock i got, but when i saw the history, i felt very different.

    how do we understand such stocks?

    • Hello will have to check the company financial reports to have a deeper understanding.
      Example: Jaihind Projects.
      In last 5 years, Book Value growth, sales growth has been negative. Net Profit has been negative since all last 5 years.

    • surya prakash verma | November 2, 2017 at 8:19 pm | Reply

      Sir can you please answer my query

      • surya prakash verma | November 2, 2017 at 8:21 pm | Reply

        Sorry for confusing comment, actually your answer was not updated for me.

        thanks for your suggestion

  9. Hi, anyone can suggest long term shares name list. I want to invest 1 lac

  10. Hi.
    I have recently bought SBI stocks @ 255, should I hold them or not since price of SBI shares are further going down day by day. If yes, then for how long (in months) should I hold them?
    Thanks in advance.

  11. great article,it gives details about the stocks which to be chosen with care

  12. Dear Sir
    I am in Army
    I want to invest in stock market for long term
    Some money one time (like 25000)
    Then some monthly basis .like 5000 per month.
    I am already started SIP in Mutual funds .
    5000 per month.

    Now I am going in share market .

    So please suggest me . Which stocks I can pick for long term .

    If possible pls share your personal contact . Emails or contact no .

    Thanks you very much

  13. Hi Mani. How come Satyam Computer Services Ltd. is in the list? Let me know about it.

  14. Dear Sir
    I want to invest in pharma sector for 5years. please advice

  15. GREAT ARTICLE SIR..i want to buy a stock for long term..can invest around 3 lacs for say 15 years so that i get great results..can you pls suggest not only a sector, but a company or share as i have limited knowledge…awaiting response as i totally trust you..

    • I would suggest investing in a passively managed ETF rather than picking stocks. You may also invest in a mutual fund ( ELSS to get tax benefits also). My personal pick would be an ETF. Most mutual funds are actively managed and come at a higher cost compared to an ETF. But that can be an advantage also. If your risk tolerance is high, opt for a mutual fund, else I would suggest investing in an ETF with a low tracking error and one that has been in existence for some time.

  16. Hi,

    I’m little confused on Market capitalization and sector leader. If you go with sector leaders then definitely the stocks will be over-valued which is contradicting your starting statements that you should identify under values stocks. Can you please clarify it.

    • Sector leaders are generally fundamentally strong stocks. You are right, such stocks generally trade at overvalued price levels. So, keep a track of them. When their market price falls below their intrinsic value, buy.

  17. Extremely well written. I got curious and saw the ‘About Me’ part and I could relate myself to you (especially the maths part, blogging part and financial independence) 🙂
    Thanks for this excellent post and lots others.

  18. Thanks again sir

  19. Sridharan Santhanam | September 2, 2017 at 8:21 pm | Reply

    Sir , You have done and doing a great Job , you are right it is a conscious writing not a coincidental writing , Very good way / Karma to pay back the society

  20. 1. Where can I find companies last 10 years detailed data?
    2. As per my list I have purchased a stock at undervalue price but still that stock price is keeps on decreasing. How can we know, up to what price its rate will decrease/from which point it stops decreasing and starts increase?

  21. Hey set of stocks with Good explanation.

  22. Thanks for excellent advice for beginnners like me. India need a quatum jump in investments from individuals. But the information dissipation regarding stock is limited. The financial advising sector in India is poor as well as awareness. The information from this blog actually help to start analysing companies. I think financial advisers for investing for each middle class Indian is a must like Family Doctors as we need real Private sector growth in India. But SEBI and the players involved from top to bottom should be true to themselves and by ploughing the weed out.

  23. hello sir ,
    I want to invest 2000rs for every month . kindly suggest some stocks .

  24. SIR I HAVE PURCHASED 500 SHARES OF MORGANITE CRUCIBLES AT ₹ 1200+ FOR LONG TERM. HOW IS OUTLOOK?

  25. Very long list, people will never search for essay, its a world of short and quick

  26. A really wonderful site I came across,after a very long time.Truly informative and has covered almost all areas of Finance.Would like to see a writeup for NRIs planning to return and relocate in India and what are the options available for them to park their money for optimum returns.Regds and best wishes
    AK

  27. ONGC, looks good now.A correction is expected.After this and after OFS,PFC and IOC,may be bought in small lots.PSU Banks may be bought,which have exposure to Power Sector,as the GOI has asked Neyveli Lignite and NTPC to buy stressed assets of some Power Cos,thus relieving the banks exposed to these sick cos .Obviously NTPC and Neyveli may fall .Buy these stocks in small lots so that ,you can buy on dips too.

  28. I want to invest in Idfc Bank,Suzlon,Amtec for long term.Please cmment.

  29. Hello Sir,

    Very nice article. Want to know your opinion on Piramal Enterprises and DHFL. Can you please reply back on these two stocks?

  30. laxmi pat bhargava | July 22, 2017 at 4:07 pm | Reply

    The most beautiful line i liked in your blog is…….As a rule of thumb, a stock with average dividend per share for last 5 years is above 4%, is a buy……I think this is a best buy.

  31. Wanted to invest 10 lacs for 5-7 year term. Can you please suggest some options with potential of very good return.

  32. Hi. Great post. The best past is that you explained the criteria for selection- PE, PEG and dividend yield. Thanks for sharing.

  33. Sir I am new in this field .
    Want to invest 5000 to 10000 rs every month.
    Where I invest 1) stock market 2) mutual fund 3) sip
    Please guide me . I want good return

  34. Hi
    I am a beginner, trying to invest 10K. Plz suggest which shares to be buy.

  35. I have been investing in mutual fund since 4 years and getting good returns also . Now i want to invest in share also for 4-8 years …so could you please guide to which company and sector i should invest … please suggest

  36. Hi,
    Can you please suggest me best stock to buy for 1 year

    • Sowmya, stocks investing must be done with long term holding strategy (>5 years). 1Y holding time is too short a period.

  37. bhagyalakshmi.D | May 3, 2017 at 10:07 pm | Reply

    Hi , please suggest good investment for 2-3 year term

  38. What is long term and short term
    How to hold share.
    Can i buy or sell share after 1 or 2 days.

  39. hi Sir,

    what is ur opinion on Pasupati Acrylon, its trading @ 24.70/- at present and ROCE is above 20 etc.

    Please respond

  40. Hello, which penny stock to by for 2 years perspective, planning to invest 5-10K ?

  41. 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?
    What’s are the conditions they are having to start?
    Do I need any account like DEMAT account?

    • Yes, u need to have demat a/c anyway please read my BLOG, u will get lot of information on stock market further u can mail/call me if u have further doubts.
      GOD BLESS

  42. Good Works Brother. Thank you so much for making me know the basics of investing.

  43. Hi sir , i am fresher. I bought tara jewel but it is in loss. Will it come good position .pls suggest me .

  44. Excellent Analysis

  45. 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.

  46. Sir I can buy Kopran and stel holdings.Please suggest me

  47. Rahul Sikarwar | February 10, 2017 at 8:02 pm | Reply

    Dear Sir ,I am fresher,i want to invest 2000 rs per Month in Stock market for long term purpose approx 10 year.please suggest me Where should I invest.
    Thanks & Regards
    Rahul Sikarwar

  48. excellent article! Thanks for the detailed analysis.

  49. Good fundamental advice for investors.

  50. Sir I have 1 lakh what should I do for becom much money

  51. Very precise post on basic fundamentals of stock market analysis. Thanks.

  52. Hi sir…. I buy FEL 3000 share @ 18 rupees. then what is its future after 5year

  53. Now if I buy 100 high value shares such as MRF, HONEYWELL AUTOMATION, EICHER etc will I be able to sell those when the market comes up…I mean , will there buyers to buy those?

  54. HELLO SIR CAN U PLE SUGGEST THE PENNY STOCK BELOW 50 RS SHARE PRICE.. MY INVESTMENT IS ONLY 10K FOR LONG TERM

  55. if u do not believe just watch one week and will feel

  56. if u want to triple ur invest in just 3 years buy tara jewel and 50percent return in just one year

  57. Surbhi Girotra | December 1, 2016 at 7:54 pm | Reply

    Hello Sir, I want to invest 3 lkh in different stocks for one or one and half year. Please suggest the best option to go for.

    • C PRABHAKAR RAJU | April 14, 2017 at 10:42 am | Reply

      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 the current prices

  58. please suggest some share for long term investment

  59. Good day, can you tell me if it’s still right to buy sunil hitec engineers?

  60. Hi, I want to know how to start to buy shares, what is the procedures . please help on this. I am very new to this.

  61. Sir, how would you rank (1) Karur Vysya Bank PE around 9.5 BV of 1.5 (2) Renaissance Jewellery PE 5 only BV 0.5 with benefits of forex income. Both regular dividend paying companies, conservative management but steadily increasing growth. Largely missed out by investors it seems……

  62. Sir, as a beginner I want to start with minimum like starting with 10000 for short terms. kindly advise…

  63. How to buy vadilal Ind,eros international ,stampede

  64. Aditya Mahobia | November 4, 2016 at 5:19 pm | Reply

    Gurudev,
    AAp ka Jawab nahi.
    Pranam.Excellent website.

  65. Wow! this is so amazing techniques!! thank you!!

  66. JOHNSON JOSEPH ROZARIO | October 21, 2016 at 2:27 pm | Reply

    Choose an industry with less or no competitors.

  67. I want to invest five lacs for longterm like 5 years.Please suggest.

  68. SIR, I WOULD LIKE TO INVEST IN STOCK FOR LONG TERM 10 YEARS RS 50 LKH. PLEASE SUGGEST ME THKS. RAJU

  69. Hi mani
    please suggest some share for long term investment

    Thanks

  70. I had an amount of 50000..where should I invest for 5 years..

    • if u have 50k money then i think two kind of investment for u :
      1st: secure investment : HDFC GUILT Mutual Fund, HDFC Midterm opportunity mf
      2nd: Aggresive Inv : Buy HDFC EQUITY FUND or SBI BLUE CHEAP FUND
      If u want to buy Stocks then go for bajaj finance or bajaj fin serv
      but personaly suggest u, dont enter in direct equity market, it requires regular investment and its risky without complete protfolio, and in 50k amount u can’t make portfolio correctly.
      Go for mutual fund its safe.

      • M S Raghavan | June 18, 2017 at 8:47 am | Reply

        Good one, what is the minimum amount you advice to have a reasonable portfolio of stocks regards MSR

  71. Please update the analysis for the month of September 16. We are looking for new ideas.

  72. Upinder Singh | August 26, 2016 at 1:19 am | Reply

    Hi Dear, it seems you forgot the more important facet of evaluation professed for a defensive investor I.e. Calculating & comparing the intrinsic value of each company with market price. Hope it is added soon for benefit f most investors.

  73. Sir,
    I am in this field only two years. I want more knowledge in trading Expecting good ideas.

  74. mayur shirsat khanota | August 18, 2016 at 5:36 pm | Reply

    can hindalco buy for next 6 month???? what should be target

  75. Good and relevant feedback

  76. Sangameshwar Vishwanath | August 1, 2016 at 2:12 pm | Reply

    Sir iam a small trader I have rs 50000 I want to invest for a long term please suggest me some multi bagger stocks a friend suggested me gmr infra.
    is it right to buy or suggest me some company .
    please sir.
    rgds
    v sangameesh

  77. Sir I bought 15000 shares of Alok Ind @ 7.00 rs 1 year ago. Pl suggest me what will be target in next 1 year.

  78. Dear Sir

    Am thinking of investing in stock (first timer). I have divided the time frame for 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.
    Thanks in advance

    • as per my view for longterm go for :
      Bajaj Finance, Bajaj Finserv,Ipca LAb, Cipla, Sun pharma, Chola Madlam, Edelweiss Finance, L&T Finance, Hind Zinc, NBCC, Heidelberg Cement, RBL Bank, ICICI, sbi, ICICI Pru, LIC Housing, PNB, Marico, Berger Paint, can be buy inosys but avoid IT sector. Invest in Banking Finance 40-45%, pharma 20-25% and remaining or others.

      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 2-3 years.

  79. Hi ..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?

  80. Cool Value Investing Strategies. Thanks for sharing

  81. Great piece of analytics and view. Just sums up the stock investment in one go. Appreciate this article. Please keep writing such informative blogs.

  82. Hello Sir,

    I am having a stock of Suzlon of 10000 quantity, purchased 5years back @ 36. what is your view on this stock. Should I keep this stock for still long term?

    • Suzlon is struggling with huge debt. The Wind Energy scenario is very competitive now. If you have averaged @ 5 to 7 & can exit without burning your hand do it or have to wait and see.

  83. I have bought 150 shares of icici bank @248 what about its future can it be a multibagger?

  84. sandeep dhillon | July 4, 2016 at 1:40 pm | Reply

    sir ..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

  85. VERY USEFUL INFORMATION. I HAVE INVESTED IN COAL INDIA 300CSHARES , 200SHARESIN NMDC & 300 SHARES IN DCB BANK. WHAT IS FUTURS.

  86. Hi,
    I have bought 10000 shares of JP Power @ RS. 6.72 2 years ago. 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 160 to 240 range, better you sell 5000 units and buy andhra cements which is trading for 8.15rupees.

  87. Very useful information with deep study about so many companies. Really,a Knowledge worthy article.

  88. Prahladnayak | June 15, 2016 at 11:14 pm | Reply

    Dear sir ….I want to invest 100000 for five years please suggest me best 3 companys.

    • 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. and don’t put all eggs in one basket.

  89. 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 90. It can be a multibagger.
    Read the specimen of subscriber mail from my blog favoring the same intent – https://www.quora.com/Which-is-the-best-stock-to-invest-Rs-100000/answer/Sowmay-Jain

  90. to be on a safer side n to gain long term gains ….. buy sensex nd nifty according to the weightage of respective stocks …….. sensex nd nifty will surely increase n give u handsome retuns in long term….
    as we have seen sensex in 1979 ..rs 100 , and presently rs 27000… shows ur investment had increased 270 times in 35 years

  91. Sampath Kumar Patel Midivelli | May 23, 2016 at 12:58 pm | Reply

    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). Please advice the stocks.

    Thanks,
    Sampath

  92. Ketan patel | May 22, 2016 at 8:51 pm | Reply

    Hi what is your suggestion on SKM egg products stock. It has 11.77 EPS and 6.55 P/E ration and current stock price is 77.15 rupees. Can we add this stock in portfolio.

    • Hello Ketan, SKM Engg looks to be a 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: 9.57, 2.58, 0.39, -4.41, -3.54. 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.

  93. A Mohapatra | May 16, 2016 at 3:53 pm | Reply

    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.
    Keep the good work 🙂

    • Thanks for advice. The publication is updated once every month. Like the list which is now live will be relevant for the complete May’2016 (unless and until the stock market faces some major correction etc.)

  94. Hi Mani,

    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 (18.68/4.39) and Iam new to stockmarket. there is rummer in news to sell this stock. Kindly guide me what will be future of this stock

  95. Please mention good company to invest in equity / mutual fund as SIP.

  96. i invested 1 lac in suzlon stock @ Rs.29. please answer my question regarding future growth of company

  97. I invested 2 lac in NMDC stock for @ Rs.100 please answer my question regarding future growth of the company and its depend upon china market.

  98. its a nice home work. keep it up.

  99. 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.

  100. I want to get multibagger tips

  101. Yes I would like to have information on companies that have satisfactory PE / PEG ratio and also those do not have any leverage ratios

  102. GYAN SINGH FLORA | December 23, 2015 at 9:09 pm | Reply

    I AM INTERESTED TO JOIN THE GROUP “GETMONEYRICH.COM”.LET ME GET UPDATES RELATED TO FINANCIAL MARKET SITUATION FOR INDIAN SHARES.
    THANKS!

    GYAN FLORA

  103. rich information by you

  104. nice piece of info , good article

  105. Sandip Malakar | August 9, 2015 at 8:02 pm | Reply

    The best all round profitable, debt free, high growth, less cost company share name for long-term

  106. 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.

  107. Can anyone please let me know that CIL is coal India ltd or something esle?

  108. What is CIL – coal India ltd.?

  109. Sir, You have done great work. Highly appreciated ! But, I am confused with Your conclusion about HUL and nestle, How can they be power houses if the PEG is so high. It doesnt seem the right time to buy any of them based on Peter Lynch`s theory. Moreover there is negative sentiment in the maket regarding the oil price which may decline to 40$ in future, is Cairn India still a safe buy. Can anyone provide the feedback.

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