October 28, 2010 7:24 pm
Which are the 5 stocks to must include in the portfolio for long term and why?
my pick for five years+
1. airtel (below 300)
2. tata steel (below 500)
3. rolta (below 175)
4. RIL (below 900)
5. ACC (below 800)
My top large-cap picks for long term are
1. colgate-palmolive – market leader in toothpaste, toothpowder and toothbrush segments with 50% market share. It has significant presence in rural areas and will continue to tap rural market.
2. castrol india – leadership position in the lubricants industry having strong brands – GTX, Super TT, CRB, Magnatec and Activ. There may be slump in auto industry in future but lubricants will have strong demand as long as automobiles are running 🙂
3. GSK pharma/Aventis pharma – good MNC pharma companies strong marketing field force coupled with patented product launches from its parent’s strong pipeline, focus on the high-growth chronic therapy segments like Cardiology,Diabetes etc. make it a good long term, safe & defensive bet
4. Nestle india – great play on india consumption story. Its product portfolio has strong brands(coffee – Nescafé, confectionery-Kit Kat, Polo, baby food and milk – Cerelac, Lactogen, Nestogen, and noodles-Maggi) with great competitive advantage.
4. Asian paints – number one paint company for the last 20+ years. with strong products like tractor distemper and emulsion, apcolite enamel, Apex exterior etc
5.HDFC – country’s premier housing finance company with a market share of over 45 per cent has visionary management in place. It emerged itself as a multi-product financial conglomerate with banking, insurance, asset management added on to its core business of housing finance.
Almost all the above companies have proven track record with some sort of competitive advantage over their competitors and i hope to be good long term bet. Most of the time they will enjoy rich valuations. Only thing we need to do wait patiently and invest in them when they are available at attractive valuations 🙂 (i.e.around PE band of 15-18). (the key here is waiting patiently for right valuations). For investing in midcap and smallcap, dont rely on the tips. you need to do research and shortlist by yourself.
what do u guys think?
My Five.Not in any order
1.SBI (not in current price)
3.Tata Motors (after 5% correcting)
I believe these will give 15% CAGR in long term runs along with Dividends.
P.S. I am Amateur in Stock Markets
How come Tata motors become a long term investment after 5% correction ? Will it not be a good one even without 5% correction ? 🙂
I am not that great in stock picks for long term , but my choice among the stocks recommended above would be
– Educomp Solutions
From my side
– Noida Toll Bridge
I thought it currently overpriced ( like i declared im amateur) ,so i buying now may be should wait for 5% correction n then buy..isnt buying at right price should be considered for long term also?
Mainsh i see there is not much improvement from their balance sheet on Noida Toll Bridge. its given 9% returns. can you elaborate why you would choose this?
I feel the following are the five best India stocks for long term value
2) Renuka Sugar
3) Educomp Solutions
5) Bank of Baroda
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