In this article we are going to talk about the best stocks of the present day for long term investment. These stocks are on a bull run and wise investors should not miss their opportunity on these stocks as time and opportunity once wasted returns never.
Careful analysis of the Indian stock market put in the picture that the bear run is going to get over anytime soon, which means that the bull is ready to take its charge. This implies the best of all the time to invest in the stock market in 2023. The second half of the given year is going to start soon and from here the market is expected to witness the expansion of the business cycles. This will result in good performances of the companies which would in turn add value to their share prices. Rise in share prices is definitely a good news to the investors who take risks and put their trusts in these companies as they are going to book their profits from here.
The 5 best stocks for long term investment in 2023 are: Polycab India Ltd, ICICI Bank, Asian Paints, Astral Ltd, and AU Small Finance Bank
Let us discuss about few facts about these stocks.
Polycab India Ltd
The company involves the production and distribution of electric wires and cables, operating across three primary segments. They are: Wire and Cables, Fast Moving Electrical Goods (FMEG), and Others.
Consumer durable goods in India will have a promising future. The positive outlook is contributed by the following factors:
Growing middle class leading to increased purchasing power and higher demand for consumer durable goods like electronics, appliances, and furniture. Urbanization, Technological advancements, Government initiatives, and E-commerce growth, etc.
This fiscal year, the consumer durables business in India is expected to see revenue growth of 15–18%, backed by a volume increase of 10–13%. And will thus reach the anticipated Rs. 1 trillion market in the future years. By FY22, the industry is predicted to have already surpassed the pre-pandemic mark by around 3% in value terms. “According to the CRISIL report”
In the present day, Polycab India Ltd is leading in its sector generating huge scope for growth. If we look upon the financials of the company in the past 10 years, then there has been a tremendous growth in its various aspects. The figures given below describes the complete performance of the stock over a period of time.
The company has been maintaining a healthy dividend payout of 21.2% and a good profit growth of 29.0% CAGR over last 5 years,. The dividend payout has been increased from 8% in FY13 to 24% in FY22.
Earnings and Revenue
The last quarter’s earnings for POLYCAB amounted to 28.40 INR, exceeding the assessed figure of 28.36 INR by 0.16%, reflecting a positive surprise. Additionally, the company’s revenue for the same quarter totaled 43.24B INR, surpassing the estimated figure of 43.04B INR.
The estimated earnings for the upcoming quarter are projected to be 19.57 INR, while the anticipated guess for revenue is 39.50B INR.
A debt free company with healthy profitability ratios, (ROE- 20.27%, ROCE-25.82%) and generous profit growth of 22.92% for the Past 3 years is a must have stock in one’s portfolio.
ICICI Bank Ltd
Treasury management, corporate banking, and retail banking are just a few of the banking and financial services that the company provides. Its businesses include life insurance, general insurance, wholesale banking, other banks, Treasury, and other fields.
The banking sector is largely stable in the current fiscal year (FY23), claims Indian Rating and Research. By 2050, India’s banking sector is anticipated to surpass that of the United States to become the third-largest domestic banking sector. The upswing is being supported by a number of reasons, including the RBI’s initiatives and government programmes.
ICICI is one of the nation’s fastest growing private banks and comes in second among the top banks. The company’s financial performance during the last ten years shows enormous results.
The firm has continuously kept its Net Interest Margin (NIM) at 3.41% and its profit growth at 90.74% during the last three years. The stock price rose 29% in a year while the Nifty 500 returned 109.0% over a period of 2.8 years. In the upcoming year, the earning potential is predicted to increase by +19.48%.
Earnings and Revenue
During the last quarter, ICICI BANK reported earnings of 13.06 INR, surpassing the estimated figure of 13.00 INR by 0.48%, indicating a positive surprise. Despite the estimated figure of 211.72B INR, the company’s revenue for the same quarter reached 227.54B INR, demonstrating strong performance.
The upcoming quarter is expected to yield estimated earnings of 12.80 INR, with the revenue projected to reach 230.51B INR.
A company with healthy profitability ratios, (ROA- 1.31%, ROE-11.60%) and good profit growth of 34.6% CAGR over last 5 years should find a place in the investors basket.
Being our first blog, we have tried to keep the article brief and concise but we are definitely going to discuss about the remaining 3 stocks in detail in our next posts. Best shares to buy for long term in India in 2023
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Disclaimer
The blog is meant for informational purposes and serves the general analysis of the stocks. Contents provided here are based on careful research and analysis and the use of fundamental and technical indicators over a period of time. The post does not consist any direct recommendation about Investing or trading in the securities market.
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