We all love bargains!
That happy feeling of getting extra for each buck we are spending. Now when can we bargain in any market? Only when there is more supply than demand meets.
In the stock market, that time is now! Russia has declared a ‘military operation’ against Ukraine. US inflation is crossing 7%. To add more, central banks across the world have begun monetary tightening which were kept loose to ease off Corona period disruption.
These reasons have caused a massive sell-off by foreign investors in emerging markets. This offloading of shares has sharply impacted the demand and supply equation. Shares from blue-chip stocks to small caps are available at discount up to 50% off. It is like Big Billion Day sale in the e-commerce language.
5 Best Stock to Buy Today for Long Term [in 2024]
What is the best stock to buy right now in India?
Here are a few stocks that are good buys considering the massive rally we experienced till Jan’22 and the subsequent fall Feb’22 onwards.
Now before going through the list, let me explain the selection criteria for these stocks. We have referred financial aspect as well. To keep simplicity intact, we avoided putting a lot of numbers.
Selection criteria:
- Descent PE ratio
- Monopoly (or greater market presence)
- Critical service provider. Critical means without which system may not function
- Positive future outlook
- Offers regular dividend
- Availability at good price
Based on the above criteria, we have handpicked below list of stocks:
1. Multi Commodity Exchange of India Ltd (MCX) (CMP: 1200)
MCX is a commodity exchange in India. There are total 4 competitors out of which MCX holds around 80% of the market share. The dividend yield is around 2%. Commodities’ value can go up or down but the charges paid to exchange with each transaction keep the exchange in business in either case. This made MCX our first choice. Our forecast shows, there is an upside of about 55% in the next year (Mar’23).
| Forecast | ||
| High | ₹2,235.79 | +72.85% |
| Median | ₹2,017.41 | +55.97% |
| Low | ₹1,331.07 | +2.91% |
2. Computer Age Management Services Ltd (CAMS) (CMP: 2300)
CAMS holds a 70% market share in India as Registrar and transfer agent of mutual funds. It offers investors services as well. Day by day, people in India are being aware of mutual funds and the significance of SIP and long-term investment. This has increased mutual fund inflows.
In Dec’21 alone, 25000 crores worth of mutual investment is done by Indians. Who would benefit from this? The middle layer, who is getting their service charge. The dividend yield is 2.7%. This made CAMS our pick for the long term.
| Forecast | ||
| High | ₹3,598.35 | +55.63% |
| Median | ₹3,212.81 | +38.95% |
| Low | ₹2,133.31 | -7.73% |
3. Central Depository Services (India) Ltd(CDSL) (CMP: 1350)
CDSL is a depository service offering to end-users. It stores stocks and mutual funds etc. in their digital vault for you. The market share of CDSL is 78%. Whenever you sell any share from your Demat account, you would have paid some Demat charges, those charges go to depository companies like CDSL. The dividend yield is less than 1%. We are optimistic in a future growth perspective.
| Forecast | ||
| High | ₹1,792.49 | +29.56% |
| Median | ₹1,508.43 | +9.03% |
| Low | ₹695.45 | -49.73% |
4. CRISIL Ltd (CRISIL) (CMP: 2700)
CRISIL offers ratings to companies based on their financial stability or future growth expectation. It helps rated companies to get loans at competitive prices. It defines the risk investor or bank would be taking while buying stock, debentures, or approving loans respectively. CRISIL is trusted among the peers. CRISIL holds 8% in CARE ratings in India. Every one or two years, companies have to get revised ratings to raise money. This made rating agencies lucrative business. The dividend yield is 1%.
| Forecast | ||
| High | ₹3,617.6 | +32.01% |
| Median | ₹3,540.08 | +29.18% |
| Low | ₹3,462.56 | +26.35% |
5. Indian Railway Catering and Tourism Corporation Ltd (IRCTC)(CMP: 800)
IRCTC is a monopoly in the railway ticketing and catering business. You book a train ticket, or buy a water bottle in the train or buy food, a small percentage goes to IRCTC. It makes it an art piece to keep in your holdings to result in good returns. Currently stock in sluggish mode. Government is a major stakeholder. Any public-friendly decision might make a dent on profit. The dividend yield is less than 1%. We recommend adding this stock in SIP mode rather than lump sum investment.
| Forecast | ||
| High | ₹1,016.22 | +24.79% |
| Median | ₹827.42 | +1.61% |
| Low | ₹433.31 | -46.79% |
The best time to buy a thriving business is when there is fear in the market. Now is the time to initiate building a long-term portfolio.
Disclaimer: Please consult your financial advisor before investing.
I have completed master in Electrical Power System. I work and write technical tutorials on the PLC, MATLAB programming, and Electrical on DipsLab.com portal.
Sharing my knowledge on this blog makes me happy. And sometimes I delve in Python programming.