Best Stocks to Invest for the Next 5 Years

I am unaware of your motive behind asking for the best stocks for long term investment, say 5 years.

But let me tell you, it will enable you to obtain the advantages of purchasing stocks.

The moment you buy a stock it will benefit you in parameters such as compounding your investment, facing lower risks, obtaining higher returns, and enjoying the tax benefits. 

In the below mentioned paragraphs, you can view a list of stocks that you can make option buying (purchasing) and wait for at least 5 years to execute option put (selling)

The list of the 5 best stocks do belong to the stocks operating in the markets of the NSE/BSE (India). 

The prominent stocks you can purchase for a period of  five years are Asian Paints (Chemical Industry), HDFC (Banking), ITC (Hospitality Services) , Divis (Active Pharmaceutical Ingredient Segment), & Zydus (Pharmaceuticals). 

Best Stocks for Next 5 Years

1. Asian Paints (Chemical Industry)

Asian paints limited is the largest supplier of the domestic/commercial paints and it faced a loss of 500 bps in FY22 as an outcome of the material cost rise. 

Since December 22 onwards, the performance graph took an upside movement and it represented a double-digit volume growth. 

The company has forayed into the Automobile sector and the government of India has laid a higher capital expenditure on infrastructure. Further, the company is estimated to show continuous growth in FY24 also. 

2. HDFC (Banking)

HDFC maintains its credit cost lower that helps to generate high operating profits. 

The company shall make a huge profit that will create a high return on assets in FY24. 

With an increase in capital expenditure the bank’s corporate loan shall steer up.

The retail loan segment will experience a good growth with a considerable rise in two-wheeler loans, personal loans, and credit cards thus projecting a projectile in the bank loan growth. 

3. ITC (Hospitality Services) 

High inflations and the attack of Covid did not deter the operating profit growth in FY21 & FY22. 

To show the same or more growth performance in the coming 2 to 3 years the company has plans to invest 300 cr per annum. 

This pumping in of the INR 300 cr invites for the capacity expansion, back-end strengthening and further investing in the key business to keep up the brand. 

4. Divis (Active Pharmaceutical Ingredient Segment)

Divis holds a market share that includes 12 globally acclaimed pharmaceutical companies, and contributes a significant market share in the API industry. 

The company manufactures Generic API, CustomSynthesis of API, and Intermediates in India. 

Over the period, the company could operate with profits and project a consistent growth profile and maintain stable margins. 

The company plans to expand to a size of US$20 million between FY 23-25. 

5. Zydus (Pharmaceuticals)

Zydus runs their operations in the USA, India, Latin America, South America, and Europe. 

The company plans for Generic pipeline which is claiming to be the largest. 

7 percent of INR 3,435 is spent on R & D, and the highest spending to manufacture Generic pipeline is 9 million in FY23 is an investment in R&D, a strong investment.