Best Long-Term Stocks in October 2024 – Based on 5yr CAGR

Long-term stock investments usually involve holding onto stocks for several years or even decades. This approach helps investors weather economic ups and downs while benefiting from the market’s general growth over time. By investing for the long term, people can take advantage of compounding growth, which can really boost their savings.

Long-term stocks are important for anyone looking to reach big financial goals, like saving for retirement or buying a home. In this article, we will look at some of the best long-term stocks in India in October 2024, selected based on the 5yr CAGR.

Best Long-Term Stocks in October 2024 – Based on 5yr CAGR

Note: The best stocks for long-term investment in October 2024 listed here are as of September 25, 2024. The stocks are selected from the Nifty 500 stock universe, with positive Return on Equity (ROE) and Return on Capital Employed (ROCE), and sorted as per their 5-year CAGR.

Overview of the 5 Best Long-Term Stocks in India

• Lloyds Metals And Energy Ltd

Lloyds Metals & Energy is involved in the business of manufacturing sponge iron, power generation and mining activities. In FY 2024, the company’s total income was ₹65,746 million, compared to ₹34,668 million in FY 2023. The profit for the year ended March 31, 2024, was ₹12,439 million, up from a loss of ₹2,885 million in FY 2023.

Key metrics:

• ROCE: 58.69%
• ROE: 57.28%

• Jai Balaji Industries Ltd

Jai Balaji Industries Limited is involved in the manufacturing of steel and iron products. In FY 2024, the company’s total income was ₹6,629 crore, compared to ₹6,161 crore in FY 2023. The profit for the year ended March 31, 2024, was ₹880 crore, up from ₹58 crore in FY 2023.

Key metrics:

• ROCE: 55.91%
• ROE: 85.39%

• CG Power and Industrial Solutions Ltd

CG Power & Industrial Solutions operates through two main business segments: Industrial Systems and Power Systems. The company produces traction motors, propulsion systems, and signalling relays for Indian Railways, as well as a variety of induction motors, drives, transformers, switchgear, and other related products for the industrial and power sectors. Recently, the company has also expanded into the consumer appliances market, offering products such as fans, pumps, and water heaters. In FY 2024, the company’s total income was ₹8,152.24 crore, compared to ₹7,040.30 crore in FY 2023. The profit for the year ended March 31, 2024, was ₹1,427.61 crore, up from ₹962.97 crore in FY 2023.

Key metrics:

• ROCE: 55.12%
• ROE: 59.33%

• Rattanindia Enterprises Ltd

RattanIndia Enterprises Limited belongs to the Rattanindia Group. The company comprises tech-focussed new-age businesses, which include e-commerce, electric vehicles, and drones. In FY 2024, the company’s revenue from operations was ₹56,096.35 million, compared to ₹41,237.90 million in FY 2023. The profit for the year ended March 31, 2024, was ₹4,244.54 million, up from a loss of ₹2,861.43 crore in FY 2023.

Key metrics:

• ROCE: 63.45%
• ROE: 67.54%

• Adani Green Energy Ltd

Adani Green Energy Limited is a holding company of several subsidiaries that carry out renewable power generation business within the group. It is mainly involved in renewable power generation and other ancillary activities. In FY 2024, the company’s total income was ₹10,460 crore, compared to ₹8,633 crore in FY 2023. The profit for the year ended March 31, 2024, was ₹1,260 crore, up from ₹973 crore in FY 2023.

Key metrics:

• ROCE: 10.82%
• ROE: 8.87%

Benefits of Investing in Long-Term Stocks

• Compounding Growth: Long-term investments allow you to benefit from compounding, where your investment earns returns not just on the initial amount but also on the accumulated returns over time.
• Reduced Volatility: Holding stocks longer can help smooth out the market’s ups and downs. While short-term fluctuations can be dramatic, the long-term trend tends to be more stable and positive.
• Focus on Fundamentals: Long-term investors can ignore daily market noise and focus on companies’ underlying fundamentals, such as their financial health and growth potential.
• Less Stressful: A long-term investment strategy can be less stressful compared to short-term trading, as you’re not constantly monitoring the market for quick buy/sell decisions.

Risks of Investing in Long-Term Stocks

• Market Risk: Long-term investing still carries risks, including market downturns that can impact the value of your investments for extended periods.
• Requires Patience: Long-term investing demands patience and discipline, as it can take years for investments to pay off.
• Unforeseen Events: Changes in economic conditions, regulatory environments, or company-specific issues can adversely affect long-term investments.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.