Introduction 

The Indian stock market offers a variety of opportunities for investors, ranging from those who prefer high-risk options to those who prioritize stability. For individuals with a long-term outlook and a preference for value stocks that provide sustainable growth, the selection process is crucial. Let’s examine the top long-term value stocks featuring strong fundamentals and qualified management that can be valuable additions to your investment portfolio.

Top 8 strong stocks to invest

• Reliance Industries 

RIL, India’s leading conglomerate, has a presence in petrochemicals, oil, retail, and telecom industries. Its current focus is on digital expansion through Jio, which is projected to drive EBITDA growth from FY24 to FY27 via tariff hikes, capturing wireless market share, and expanding its Homes and Enterprise division. Retail growth is also expected to rebound with the addition of more stores, diversifying product offerings, and the potential introduction of quick commerce services.

It is advisable to purchase at a target price of ₹3,255.

• Zomato

Founded in 2010, Zomato is a digital platform that brings together customers, restaurants, and delivery partners. In addition to its core food delivery service, Zomato also offers Hyperpure for restaurant kitchen supplies. Notably, Zomato’s dominance in the food delivery market has increased from 54% in FY22 to 58% in 1QFY25, surpassing its main competitor Swiggy. The company’s multi-app approach promotes creativity and efficiency, exemplified by the development of Blinkit for quick commerce.

Our suggested course of action is to purchase Zomato at a target price of ₹320, taking into account its growing market share and impressive performance in quick commerce.

• TCS 

As a global IT leader, TCS provides an array of services such as digital transformation, AI implementation, cloud solutions, and software development. In the upcoming fiscal year, TCS is expected to experience growth due to the BSNL expansion and finalization of significant deals. With robust financials and a focus on innovation, TCS is poised for continued success in the future. 

Our recommendation is to purchase at a target price of ₹5400, based on its strong potential for growth and solid deal momentum.

• SBI

SBI Cards dominates with 18.5% CIF market share and 15.9% in industry spends. Despite a decline in corporate spending, its performance remains strong thanks to continued growth in retail transactions. By prioritizing product innovation and increased consumer usage, SBI Cards aims for a 34% CAGR earnings growth in FY26-27E, aided by improved asset quality and lowered funding costs. 

Our recommendation is to buy at a target price of ₹850, considering its solid growth outlook and extensive retail presence.

• Oil India

As a public sector enterprise, Oil India Limited is heavily involved in exploration, production, and transportation of crude oil and natural gas, as well as LPG production. Anticipated robust growth in production during the period of FY24-FY27 places the company in a favorable position to counter any potential declines in prices. The progress of significant projects such as the Indradhanush gas grid and Numaligarh refinery expansion remains on schedule, expected to bring considerable value by FY26. Considering its minimal risk of decline, this stock presents an appealing long-term investment opportunity. 

Our suggestion is to make a purchase at a target price of ₹720.

• Dabur India

As a top player in FMCG, Dabur Ltd. is poised to reap the rewards of rural resurgence, spurred by favorable monsoon seasons and rising incomes. Boasting a significant 45-50% presence in rural areas, Dabur is further reaching out with cost-effective product bundles designed specifically for these underserved markets. Leveraging its extensive distribution system covering 7.9 million outlets, including direct access to 1.42 million, Dabur stands out as a formidable contender for sustained expansion. 

Our suggested course of action is to make a purchase at a target price of ₹700.

• L&T Industries 

The company focuses on providing engineering research and development services. It foresees overall expansion and is poised to finalize major transactions in the near future, such as a cybersecurity venture with the Maharashtra Government. L&T also recognizes the high demand for sustainability efforts, influenced by the China+1 tactic, despite potential setbacks caused by the US elections. The company remains committed to its FY25 projections of organic growth between 8-10%, thanks to a robust pipeline and expected milestone payments. 

Our suggested course of action is to make a purchase at a target price of ₹6,400.

• Vinati Organics

By merging with Veeral Additives, the company has solidified its operations through both backward and vertical integration. This strategic move is set to increase economies of scale and secure VO’s position as a leader in ATBS and antioxidants. The recent commissioning of OSBP and DSBP plants further cements the company as the sole domestic producer in India, reducing the need for imports. With in-house production capabilities, the company anticipates decreased raw material costs, improved margins, and heightened competitiveness in the specialty chemicals industry. Our suggestion is to purchase at a target cost of ₹2,500.

Conclusion 

Diversifying your investments into value stocks involves finding a balance between growth and stability while maintaining a patient approach. The selection of stocks mentioned, which cover tech, energy, and FMCG industries, are positioned for continuous growth thanks to their solid foundations and potential for the future. Whether it’s Reliance expanding into the digital space, TCS leading the market, or Dabur reaching rural areas, these businesses present secure prospects for building wealth. By conducting thorough research and developing a well-defined investment plan, these particular choices could significantly contribute to achieving long-term success in your portfolio. You may start investing with Equity Box, Rajkot’s Best Investment Consultant.