Best 3 Stocks for Long Term Investment
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| ITC India stocks graph. |
The present market environment has come as an opportunity for long term
investors. In this article we bring you a detailed overview of 3 fundamentally strong
stocks that will provide immense long term value.
ITC
ITC came into existence in 1910 and is one of the largest cigarette manufacturer in
India. Recently ITC has been expanding and diversifying in various business
sectors as well like Fast Moving Consumer Goods or FMCG, Hotels and
Hospitality, Paperboards, Paper and Agriculture.
Infamous household brands like Ashirwaad Atta, Paperboat, Sunfeast and many
others are a part of ITC line of products.
• Sales Growth
With a diversified business portfolio ITC has been experiencing exponential
growth. Moreover its growth has been resilient to the impact of pandemic.
It has experienced a Year on Year sales growth of around 27% with operating profit
margin stating consistent at 34%.
• Earnings
Per ShareITC stock has been delivering stable Earnings Per Share of around ₹3 per share.
The best part about ITC stock is its dividend yield of over 55% which has
consistently given returns to its investors.
With increasing market penetration through its FMCG product line, we expect its
earnings per share to increase exponentially in the coming future.
• Price to Book Value
Another great factor about ITC is its valuation is on the basis of its Tobacco
business instead of FMCG, however its growth has been exponential in the FMCG
industry.
Considering the valuation with Price to Book Value of 4.33, the company appears
to be highly undervalued.
Tata Consultancy Services
Tata Consultancy Services is a renowned Indian technology company and a
subsidiary of Tata group.
Its major line of businesses include IT services, consulting and business solutions.
The organisation has been collaborating and helping in their growth with numerous
of the world's largest businesses for over 50 years.
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| TCS Stocks image |
• Sales Growth
With its state of the art consulting led, cognitive powered and integrated portfolio
of technology and engineering services, TCS has been experiencing exponential
growth. Moreover its growth has been resilient to the impact of pandemic as well
as majority of the business are adopting to the digitisation age.
It has experienced a Year on Year sales growth of around 19% with operating profit
margin staying consistent at 28%.
• Earnings Per Share
TCS stock has been delivering exponential Earnings Per Share growth of around
₹24 per share. The best part about TCS stock is its Compounded Annual Growth
Return for 1 year of over 49% which has made exponential profits to its investors.
With increasing market penetration through its sate of the art technologically driven
services, we expect its earnings per share to increase exponentially in the coming
future.
• Price to Book Value
Another great factor about TCS is its valuation.
Even though its stock has been trading with Price to Book Value of over 13,
however its growth has been exponential in the past one year and pandemic has
proven to be a catalyst for its growth.
Hence even with Price to Book Value of 13.75, the company appears to be highly
undervalued.
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| PNB Stocks Image |
• Revenue Growth
Punjab National Bank or PNB has been on an consistent revenue growth with
increasing Net interest income. Moreover considering its stability and reputation,
its banking services has been resilient to the impact of pandemic as it has received
immense support from the government.
It has experienced an impressive Year on Year revenue growth of around 55% in
the financial year ending March 2021.
• Earnings Per Share
PNB stock has been delivering consistent Earnings Per Share of ₹0.65 but its EPS
has experienced exponential growth of around ₹2.45 per share in the financial year
20-21.
The great thing about PNB stock is its Compounded Annual Growth Return for 5
years of over 21% which has made immense profits to its investors.
• Price to Book Value
Another great factor about PNB is its valuation.
The bank has been trading with Price to Book Value of merely 0.48, making it
immensely undervalued and highly attractive to long term investors.
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