The year 2021 has seen a surge in the number of retail investors in the Indian stock market. A huge amount of money has been pumped in that helped companies increase their valuation and allowed many investors to grow their wealth as well. Several equity shares gave a stellar performance and allowed their investors to meet long term goals. Those who have been already invested in the stocks that performed well in 2021 won the game and showed how investing in equity shares helps investors to grow their wealth steadily. However, the 2021 period is over and we have also completed a couple of months in 2022. The Indian stock market has still been correcting its overvaluation in the initial phase of 2022, which has given us the right opportunity to make medium-term investments. In this article, we will learn about the top equity shares of 2022 that you can invest in for 5 years.
Many Indian companies have registered commendable growth over the last few years
Best Stocks to Invest in for 5 Years
One of the biggest IT companies in India, Tech Mahindra has been operating in the country since 1986. The company has operations in over 90 countries across the globe and is engaged primarily in offering IT services to its clients. The company’s stock P/E ratio is 29.30, which is the industry P/E. The fundamentals also speak well as the IT MNC has recorded a steady increase in revenue over the years. The profits have also been consistent throughout, even during the pandemic year. After making an all-time high of 1838, the stock has corrected a lot and is now resting around 1400. However, many experts see great upside movement in the stock once it starts registering volume.
Tata Consultancy Services (TCS)
The second pick in the category of equity shares for 5 years in TCS. The largest IT company in the world and second-largest company in the Indian equity shares market by market cap, TCS has given commendable performance in the past year. The company has grown its business operations in several countries and registered strong quarterly numbers. We have seen how the stock kept on attaining new highs continuously towards the end of 2021. As of now, the stock is trading a little over 3700 after registering a healthy correction. This is the best time to include TCS in your portfolio if you are looking for good IT stocks to invest in for 5 years.
Adani Ports & Special Economic Zone (APSEZ)
One of the best stocks in the segment, Adani Ports has received a ‘Buy’ rating from all major investment houses and analysts. The shipping company has registered a steep increase in its profit in the last quarter of 2021 and has made several acquisitions as well as completed several projects in the last few months. Adani Ports is also looking to get a high level of monopoly over the country’s port trading services segment and for the same, has been investing a lot in the business. Although the stock made an all-time high of 901, it is now trading around 700. If it sustains around this level, there are good upside trends for the stock in the short and mid-term. After a good correction in valuation, Adani Ports can be picked up to invest for 5 years.
Reliance Industries (RIL)
The biggest giant of the Indian equity shares market, Reliance is one such stock that every investor wishes to have in his/her portfolio. The stock is known for being very stable and offering steady and consistent returns in the long run. In the last AGM, the company’s supremo Mukesh Ambani announced several investments by the company in the upcoming years. Reliance, which already maintains a very diverse industry portfolio ranging from oil, telecom to apparel, is again looking forward to exploring new market arenas. The green energy domain, which is one of the hot topics these days, is also being targeted by Reliance. The company’s stock is now trading around 2330, which is over Rs 400 less than its 52-week high. The stock is now very light, making it a favourable investment pick for the upcoming 5 years.
The biggest private bank in India and most valued banking stock in the country’s stock market, HDFC Banks has seen a heavy downside after making an all-time high of 1725. The heavy correction has made the stock near to its 52-week low. The company’s fundamentals, however, speak differently. HDFC Bank’s revenue, profit, and net worth have increased both Q-o-Q and Y-o-Y in the last quarter of 2021. If you are looking for a banking stock to include in your 5-year portfolio, there can be no other than HDFC Bank.
These are the top equity shares that you can consider picking up to invest in for 5 years. The list contains stocks best in their respective segments and the list itself is composed of stocks from four different industries. However, it is highly recommended that you should do your research before making any investment in the stock market. Although all the aforementioned stocks have performed substantially well in the past 5 years, the same is no guarantee for their future performance. Follow the best investment advice from experts to earn healthy returns from the stock market.