The Best Stocks Under 200 for Long-Term Investment from 2021 to 2030: A Guide for Intelligent Investors
As the stock market continues to evolve, it's essential for investors to adopt a long-term investment strategy. Long-term investing not only smooths out short-term market volatility but also offers substantial returns over the years. This article is a comprehensive guide for individuals and retail investors who are looking for the best stocks under 200 for a 5-10 year investment horizon. We will explore 10 carefully selected stocks that have shown consistent growth and potential for significant returns in the coming decade.
Overview of Market Trends
One of the key trends in the current stock market is the interest in penny stocks, driven by the rise in trading activity and the search for quick gains. However, it's important to note that while short-term trading might offer quick returns, long-term investing is widely regarded as the most effective strategy for wealth accumulation. By allocating a portion of your funds to long-term stocks, you can benefit from compounding returns and minimize the risk of market fluctuations.
Government-Backed Companies
Government-owned companies have a unique advantage in terms of stability and long-term prospects. These companies often enjoy policy support and a secure operating environment, which can contribute to steady growth over the years.
Top 10 Stocks Under 200 for Long-Term Investment
1. NMDC Limited (Current Market Price: INR 85 - 120)
Valuation: NMDC Limited is a government-owned mineral producer under the Ministry of Steel, Government of India. The company has a strong market position and is expected to continue delivering consistent earnings over the long term.
Potential Return: With a conservative estimate, NMDC Limited is expected to grow by 100% from its current market price by 2025-2030.
2. GAIL Limited (Current Market Price: INR 110 - 150)
Valuation: GAIL Limited is a government-owned natural gas explorer and producer responsible for natural gas processing and distribution in India. The company has been consistently delivering high cash flow, which has supported numerous other businesses in the sector.
Potential Return: In the next decade, GAIL Limited is expected to deliver a significant growth of 100% from its current market price by 2025-2030.
3. ITC (Current Market Price: INR 250 - 300)
Valuation: ITC has been undervalued in the market, offering substantial value to long-term investors. The company has a strong cash flow, allowing it to support numerous other businesses in the supply chain.
Potential Return: Over the next 5-10 years, ITC is expected to see a growth of 100% from its current market price.
4. Bharat Electronics (Current Market Price: INR 289.10 - 330)
Valuation: Bharat Electronics Limited (BEL) is a strong contender for long-term investment. As of 22nd Aug 2022, the share price closed at INR 289.10, and we recommend a 'Strong Buy' for the long-term with a stoploss of INR 223.29 for the short-term.
Potential Return: Over the next 5-10 years, Bharat Electronics is expected to provide a growth of 100% from its current market price.
5. Bharat Heavy Electricals Limited (BHEL) (Current Market Price: INR 120 - 150)
Valuation: Bharat Heavy Electricals Limited is an Indian government-owned engineering and manufacturing enterprise. The company has a strong track record and is expected to deliver steady growth over the next decade.
Potential Return: BHEL is expected to grow by 100% from its current market price by 2025-2030.
6. Rubfila International Ltd (Current Market Price: INR 78.7 - 100)
Valuation: Rubfila International Ltd has demonstrated strong profit growth and a healthy dividend payout. The company is expected to continue delivering good quarters, making it an attractive long-term investment option.
Potential Return: Rubfila International Ltd is projected to see a growth of 100% from its current market price by 2025-2030.
7. Likhitha Infrastructure Ltd (Current Market Price: INR 253 - 300)
Valuation: Likhitha Infrastructure Ltd has a robust profit growth record over the past five years, with a 42.72 CAGR. This strong performance is expected to continue, making it a solid choice for long-term investors.
Potential Return: The company is expected to achieve a growth of 100% from its current market price by 2025-2030.
8. Rishiroop Ltd (Current Market Price: INR 92.2 - 120)
Valuation: Rishiroop Ltd is trading at 0.99 times its book value, indicating undervaluation. The company has a 18.65 CAGR in profit growth over the past five years, making it a potentially attractive long-term investment.
Potential Return: Rishiroop Ltd is expected to grow by 100% from its current market price by 2025-2030.
9. Multibase India (Current Market Price: INR 193 - 220)
Valuation: Multibase India is almost debt-free and has been maintaining a healthy dividend payout. The company's strong fundamentals and lack of debt can contribute to steady growth over the long term.
Potential Return: Over the next 5-10 years, Multibase India is expected to see a growth of 100% from its current market price.
Conclusion
Long-term investing requires patience and a focus on undervalued, fundamentally strong companies. By selecting the right stocks, investors can maximize their returns while minimizing risk. The list of stocks mentioned above offers a good starting point for long-term investors seeking to build wealth over the next decade.
Disclaimer: This information is provided for educational purposes only. It is recommended that you consult your financial advisor before making any investment decisions.
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