Top Long-Term Stocks in February 2025 – 5YR CAGR Basis: Lloyds Metals & Energy, PTC Industries and More

As we enter February 2025, identifying stocks with strong long-term growth potential remains a key focus for investors. The market offers a variety of companies across different sectors, each with unique strengths and challenges.

This article explores some of the top stocks, highlighting their financial health and growth trajectories.

Check the best long-term stocks in February 2025 in India, based on 5-yr CAGR and also learn the advantages and risks of investing in them and who should invest in them.

Top Long-Term Stocks in February 2025 – Based on 5yr CAGR

Note: The best long-term stocks list provided here is as of January 24, 2024. The stocks are selected from the Nifty 500 stock universe, with positive Return on Equity (ROE) and Return on Capital Employed (ROCE). The stocks are sorted as per their 5-year CAGR.

Overview of the 5 Best Long-Term Stocks in India

• Lloyds Metals And Energy Ltd

Lloyds Metals and Energy Ltd is a leading player in the iron and steel manufacturing industry, with a strong presence in the mining, energy, and infrastructure sectors. The company operates multiple production units across Maharashtra.

In recent business development, Lloyds Metals is set to establish a mineral-based steel plant in Konsari, Gadchiroli, to enhance its DRI capacity. Additionally, the company is in the process of acquiring the Mine Development & Operations (MDO) business of Thriveni Earthmovers

Key metrics:

• ROCE: 58.69%
• ROE: 57.28%

• PTC Industries Ltd

PTC Industries Ltd is a leading manufacturer specialising in advanced titanium products, including castings, ingots, and powders, serving sectors such as aerospace, oil and gas, and energy.

In recent business development, PTC Industries recently launched India’s first private sector Vacuum Arc Remelting (VAR) furnace, capable of producing aerospace-grade titanium alloy ingots. This new facility, positions the company to capitalise on global supply disruptions, particularly those related to Russia’s titanium exports.

Key metrics:

• ROCE: 9.22%
• ROE: 8.87%

• CG Power and Industrial Solutions Ltd

CG Power and Industrial Solutions Ltd is a leading engineering conglomerate in India, specialising in a wide range of electrical engineering products and solutions for power transmission, distribution, and industrial applications.

CG Power has recently received approval from the India Semiconductor Mission (ISM) for a subsidy of up to ₹3,501 crores to set up an Outsourced Semiconductor Assembly and Test (OSAT) facility.

Key metrics:

• ROCE: 55.12%
• ROE: 59.33%

• BSE Ltd

BSE (Bombay Stock Exchange) is Asia’s first stock exchange, established in 1875, and has grown into a leading global exchange offering a platform for trading equities, derivatives, currencies, and more.

In Q2 FY25, BSE reported a remarkable 193% increase in net profit, reaching ₹346 crore, with total revenues soaring to ₹819 crore. Additionally, the exchange announced the divestment of its 100% stake in BSE Institute Ltd, marking a strategic move to optimise its portfolio.

Key metrics:

• ROCE: 23.38%
• ROE: 24.78%

• Jupiter Wagons Ltd

Jupiter Wagons is a leading Indian manufacturer specialising in railway freight cars, rolling stocks, and various transportation solutions. The company is known for its innovative products, including wagons, commercial electric vehicles, and infrastructure solutions for railways and roadways.

In Q2 FY25, Jupiter Wagons reported a 9.34% increase in consolidated net profit, reaching ₹89.74 crore compared to ₹82.07 crore in Q2 FY24. Revenue from operations also saw a significant growth of 14.75% YoY, totalling ₹1,009.04 crore.

Key metrics:

• ROCE: 28.65%
• ROE: 27.23%

Long-Term Stocks Sorted Based on Market Capitalisation

Long-Term Stocks Based on Market Cap Category

Advantages of Investing in Long-Term Stocks

• Compound Growth: Long-term investments benefit from compounding, where earnings are reinvested to generate additional returns over time.
• Potential for Higher Returns: Historically, long-term investments tend to offer higher returns compared to short-term trading, as the stock market generally grows in value over the long haul.
• Reduced Impact of Market Volatility: Over a longer time horizon, short-term market fluctuations tend to have a lesser impact, allowing investors to ride out market volatility.

Risks of Investing in Long-Term Stocks

• Market Volatility: While volatility has less impact over time, long-term stocks are still exposed to market downturns, which could affect stock values.
• Company-Specific Risks: Changes in company management, performance, or industry dynamics could negatively impact stock prices over the long term.
• Opportunity Cost: By locking capital in long-term stocks, investors may miss out on more lucrative short-term opportunities or emerging sectors.

Conclusion

long-term stocks require careful consideration of both the potential advantages, such as compounding returns and reduced volatility, as well as the risks, including market fluctuations and company-specific challenges.

It is crucial for investors to align their investments with their individual financial goals and risk tolerance. Whether opting for large-cap, mid-cap, or small-cap stocks, ensure that the stocks fit into your broader portfolio strategy. As always, before making any investment decisions, it’s highly recommended to consult with a financial advisor to receive personalised guidance and make well-informed choices tailored to your financial objectives.

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.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.