Best Long-Term Stocks in January 2025 – 5yr CAGR Basis: Lloyds Metals & Energy, PTC Industries, & More

Long-term stocks are investments that have the potential to grow steadily over an extended period, typically 5 to 10 years or more. These stocks are often associated with companies that have strong fundamentals, a solid track record, and a competitive edge in their respective industries. These can serve you in achieving your long-term goals like buying a house, retirement, children’s education, etc. In this article, check the best long-term stocks in January 2025 in India, based on 5-yr CAGR and also learn the advantages and risks of investing in them and who should invest in them.

Best Long-Term Stocks in January 2025 – Based on 5yr CAGR

Note: The best long-term stocks list provided here is as of December 23, 2024. The stocks are selected from the Nifty 500 stock universe, with positive Return on Equity (ROE) and Return on Capital Employed (ROCE). The stocks are sorted as per their 5-year CAGR.

Overview of the 5 Best Long-Term Stocks in India

1. Lloyds Metals And Energy Ltd

Lloyds Metals & Energy is engaged in the manufacturing of sponge iron, power generation and mining activities. In FY 2024, the company’s total income was ₹65,746 million, compared to ₹34,668 million in FY 2023, with 90% growth YoY. The profit for the year ended March 31, 2024, was ₹12,439 million, up from a loss of ₹2,885 million in FY 2023. For the half year ended September 30, 2024, the company reported PAT of ₹858.72 crore, up from ₹634.51 crore during the same period in the last year.

Key metrics:

• ROCE: 58.69%
• ROE: 57.28%

2. PTC Industries Ltd

PTC Industries is involved in the manufacturing of metal components for critical and supercritical applications for industries like oil & gas, Liquefied Natural Gas (LNG), defence, ships & marine etc. In FY 2024, the company’s total income was ₹27,025.84 lakh, compared to ₹22,673.48 lakh in FY 2023. The profit for the year ended March 31, 2024, was ₹4,221.58 lakh, up from ₹2,581.51 lakh in FY 2023. The PAT for H1 FY25 stood at ₹222.0 million, compared to ₹194.2 million in the previous year, reflecting a growth of 14.3% YoY.

Key metrics:

• ROCE: 9.22%
• ROE: 8.87%

3. CG Power and Industrial Solutions Ltd

CG Power & Industrial Solutions manufactures traction motors, propulsion systems, and signalling relays for Indian Railways, along with a wide range of induction motors, drives, transformers, switchgear, and other products for the industrial and power sectors. The company has also entered the consumer appliances market, offering products like fans, pumps, and water heaters. In FY 2024, the company’s total income was ₹8,152 crore, compared to ₹7,040 crore in FY 2023. The profit for the year ended March 31, 2024, was ₹1,427.61 crore, up from ₹962.97 crore in FY 2023. The PAT for H1 FY25 stood at ₹455 crore, compared to ₹405 crore in the previous year, showcasing a growth of 12% YoY.

Key metrics:

• ROCE: 55.12%
• ROE: 59.33%

4. HBL Power Systems Ltd

HBL Power System Ltd is engaged in the manufacturing and services of different types of batteries, e-mobility, and other products. In FY 2024, the company’s total income was ₹2,251.26 crore, compared to ₹1,386.36 crore in FY 2023. The profit for the year ended March 31, 2024, was ₹280.89 crore, up from ₹98.65 crore in FY 2023. The PAT for H1 FY25 stood at ₹15,185.90 lakh, compared to ₹11,866.55 lakh during the same period in the previous year.

Key metrics:

• ROCE: 30.98%
• ROE: 25.87%

5. RattanIndia Enterprises Ltd

RattanIndia Enterprises Limited belongs to the Rattanindia Group. The company contains tech-focused new-age businesses, including e-commerce, electric vehicles, and drones. In FY 2024, the company’s revenue from operations was ₹56,096.35 million, compared to ₹41,237.90 million in FY 2023. The profit for the year ended March 31, 2024, was ₹4,244.54 million, up from a loss of ₹2,861.43 crore in FY 2023. For the half year ended September 30, 2024, the company reported PAT of ₹6,096.57 million, up from ₹3,186.11 million during the same period in the last year.

Key metrics:

• ROCE: 63.45%
• ROE: 67.54%

Advantages of Investing in Long-Term Stocks

• Compound Growth: Long-term investments benefit from compounding, where earnings are reinvested to generate additional returns over time.
• Potential for Higher Returns: Historically, long-term investments tend to offer higher returns compared to short-term trading, as the stock market generally grows in value over the long haul.
• Reduced Impact of Market Volatility: Over a longer time horizon, short-term market fluctuations tend to have a lesser impact, allowing investors to ride out market volatility.

Risks of Investing in Long-Term Stocks

• Market Volatility: While volatility has less impact over time, long-term stocks are still exposed to market downturns, which could affect stock values.
• Company-Specific Risks: Changes in company management, performance, or industry dynamics could negatively impact stock prices over the long term.
• Opportunity Cost: By locking capital in long-term stocks, investors may miss out on more lucrative short-term opportunities or emerging sectors.

Who Should Invest in Long-Term Stocks in India?

Long-term stocks can be ideal for investors in India who have a patient, disciplined approach to investing and are looking to build wealth over time. This includes individuals with long-term financial goals such as retirement planning, children’s education, or wealth accumulation. It can suit those who can tolerate short-term market fluctuations and are not reliant on immediate returns.

Additionally, investors with a moderate to high-risk appetite, who can hold their investments for several years, are well-positioned to benefit from the growth potential of long-term stocks. Long-term investing can also appeal to individuals seeking to take advantage of compounding returns while avoiding the stress of daily market movements.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.