The world has been taken by a storm by the current global pandemic called COVID-19. It all started with China and soon enough WHO declared the COVID-19 as a pandemic and that was followed by a host of countries initiating lockdowns, travel bans, and several other restrictions. Just like other countries, India too is witnessing a sudden fall in the stock markets due to the lockdown imposed throughout the country to check the spread of COVID-19.
The current scenario could be considered to be one of the best investment opportunities. Many investors could make the mistake of buying cheap stocks or end up investing in cheap cyclical stocks which would turn out to be a grave mistake. Stock markets have a habit of rewarding investors who go for long term investments. This pandemic is a one-off and is creating one of the best investment opportunities for people to develop wealth over the next 10-12 years. In the long run, the markets will recover and the businesses will soar again.
It is extremely likely that after 5 years, we all will be looking back at this pandemic (COVID-19) as the best investment opportunity. But, you might not be sure of where to invest to gain the maximum results. So, here are some of the top long-term investments you should consider to create wealth, in the current situation.
Sl. No.
|
Company |
Price (INR) |
M. Cap (INR) |
Income (INR) |
PAT (INR) |
|
|
1. |
Reliance |
1,088.00 |
7,05,211.81 crore |
380,438.00Cr. |
35,163.00Cr |
|
2. |
TCS |
1,659.00 |
6,84,078.49 crore |
155,013.00Cr.
|
32,506.00Cr. |
|
3. |
Infosys |
588.50.00 |
2,78,339.46 crore |
89,063.00Cr. |
16,383.00Cr. |
|
5. |
HDFC Life |
422.30 |
85,243.76 crore |
85,243.76Cr. |
1278.00Cr. |
|
4. |
Asian Paints |
1,522.00 |
53845.73 crore |
20,619.78Cr. |
1,894.80Cr. |
1.Reliance: Reliance has been competing with TCS to become the number one company in terms of m-cap. On Tuesday (1st April), it has surpassed TCS and grabbed the title of the most valued firm by market capitalization. So, it is quite evident that the market capitalization of Reliance has been consistently multiplying and has now reached INR 7, 05,211.81 crores. It is a good idea to invest in Reliance. If somebody had invested INR 10,000 in Reliance back in 1979, then the amount would have now become around INR 1,00,00,000. The total assets and the turnover of this company have been ever increasing and historically speaking, no investor has ever lost with long term investments in Reliance. Thus, Reliance is providing the best investment opportunity in the market now, in the pandemic caused by COVID-19.
Current Market Price: INR 1,088.00
P/E: 18.52
Industry P/E: 13.21
Market CAP: INR 7,05,211.81 crore
EPS: 58.18
2. TCS: Tata Consultancy Services is the second biggest IT Sector Company in our country. Recently, it crossed a market value of $100 bn. Investors might question investing in TCS as some could suggest that the company has reached saturation. But, ever since 2014, the company has been consistent in delivering double-digit growth. Besides it also has strong fundamentals. We are gradually moving towards advanced computing, tech-oriented strategies, etc. These have been fueling the ever-increasing demand for IT services and will continue doing so.
Current Market Price (NSE): INR 1,659.00
P/E: 18.89
Industry P/E: 17.53
Market CAP: INR 6,84,078.49 crores
EPS: 87.56
3. Infosys: Just after TCS, Infosys has grabbed the spot of the third-largest IT firm. The company is thriving to gain more market share and could generate great returns for investors in the upcoming years. We all are well aware of the fact that the demand for technology-oriented services is surging by the day and hence, this IT firm stands as the best investment option in 2020.
Current Market Price: INR 588.50
P/E: 16.31
Industry P/E: 17.53
Market CAP: INR 2,78,339.46 crore
EPS: 35.91
4. HDFC Life: HDFC Life has seen good loan growth delivery and system-wide growth. They have the strengths of diversified retail asset franchise, solid deposit profile, multiple granular fee streams, and seasoned mechanisms. These are helping it to gain better-profiled NTB customers and leverage ETB customers. Besides, they also have robust and dynamic risk management that makes sure that HDFC Bank provides resilient, capital-efficient, profitable, and consistent growth. It is expected to improve even more and strengthen the pricing power for credit as well as deposits.
Current Market Price: INR 422.30
P/E: 63.22
Industry P/E: 53.28
Market CAP: INR 85,243.76 Cr.
EPS: 6.68
5. Asian Paints: Asian Paints Limited holds the status of India’s largest and the fourth-largest paint manufacturing company in Asia, besides selling and distribution. The company has also entered the home décor arena with its new portfolio in bathroom fittings.
The business of Asian Paints has been spreading all over the globe, and it operates in over 65 countries. They have 26 manufacturing units all over the globe. The brand value and the brand equity of the company make it so attractive. It has been free of debts so far and all its operations are funded by equity.
Current Market Price: INR 1,522.00
P/E: 64.46
Market CAP: INR 53,845.73 crore
EPS: INR 19.75
