7 Best Stocks to Buy in India for Long-Term Investment in 2025

Exposure across consumption, financials, automotive, pharmaceuticals, industrial manufacturing, and building materials diversifies cycle sensitivity and supports compounding through time. Each of the seven businesses offers visible runway, balance sheet resilience or cash generation, and structural tailwinds that can anchor long-horizon outcomes. Let’s take a look at it.

Trent

Trent’s Westside, Zudio, and allied formats benefit from rising organized retail penetration and value fashion demand in India, where robust box economics and swift Zudio expansion enhance scale and leverage over time. A disciplined brand slate with quick merchandizing turns and controlled rollouts supports sustained revenue delivery and resilient margins through cycles.

Britannia Industries

Britannia benefits from premiumization in biscuits and bakery, distribution expansion in rural and semi‑urban India, and input cost cycles that have historically allowed gross margin recovery, supporting brand‑led pricing power. Its innovation pipeline and adjacency extensions help expand addressable market while scale efficiencies bolster return ratios over the long term.

Power Finance Corporation (PFC)

PFC finances India’s power value chain and stands to benefit from generation, transmission, and distribution capex tied to electrification and grid modernization, with asset quality improving in recent years. Rising renewable investments and government-backed sector reforms provide multi-year loan growth visibility and stable spreads for a large, systemically important lender.​

Bajaj Auto

A powerful export base, premium motorcycle leadership, and a widening EV roadmap equip Bajaj Auto to balance sales and profitability across markets and segments. Shareholder-aware capital allocation, strong cash generation, and premium brand strength provide resilience during phases of domestic cycle softness.

Aurobindo Pharma

Aurobindo leverages a broad US generic and injectables presence and acquisitions that add profitable scale, with operating efficiency gains improving margins as complex products ramp. Diversification across therapies and markets moderates pricing pressure risk, supporting steady cash flows for reinvestment and deleveraging.​

Happy Forgings

Happy Forgings supplies heavy forgings and precision machined components with record-high operating margins and a superior execution track record versus peers, pointing to structural cost advantages and pricing discipline. Recent reports project robust FY25–FY28 CAGRs in revenue, EBITDA, and PAT, supported by capacity, mix shift, and export recovery, while valuation reflects premium quality with room for growth delivery.​

APL Apollo Tubes

APL Apollo leads in structural steel tubes with product innovation and distribution depth, benefiting from construction, infra, and real estate cycles as formal share rises. Scale, branding, and a wide portfolio drive mix improvement and margin stability, with capex-backed capacity enabling volume-led operating leverage.​​

Conclusion

This seven-stock framework aligns with secular consumption, formalization, infrastructure funding, export momentum, healthcare demand, industrial manufacturing, and construction cycles, offering a diversified engine for compounding across conditions. Adhere to target weights, rebalance periodically, and maintain a three-to-five-year horizon to convert structural drivers into durable outcomes amid interim noise.

        FAQs       

How can I tell if these long-term stocks are currently overvalued or undervalued?

Check each company’s P/E ratio, P/B ratio, and EV/EBITDA compared to its 5-year average. For example, if Britannia’s P/E is much higher than its historical average, it may be priced for perfection. For cyclicals like Bajaj Auto or Happy Forgings, valuation is best judged during down cycles, not at the peak of demand. 

When is the best time of year to accumulate these stocks?

Generally, Q2 and Q4 of the financial year see corrections after quarterly results or dividend payouts. Many long-term investors use these phases to accumulate fundamentally strong companies at lower valuations. 

Should I prefer dividend-paying stocks or growth-focused ones among these?

If you prefer steady income, focus on PFC, Britannia, and Bajaj Auto for their regular dividend track record. If you’re looking for capital appreciation, Happy Forgings, Genus Power, and Trent may deliver stronger growth over time. 

How can I track management quality before investing?

Look at their annual reports, investor presentations, and conference calls. For example, Trent’s management is known for transparent reporting and consistent execution. Meanwhile, Happy Forgings’ growth strategy and capacity expansion plans reflect strong leadership commitment. Long-term returns often mirror management discipline.

How can I protect profits without exiting these long-term stocks?

Use partial profit booking. For instance, if a stock doubles in value, sell 25–30% and keep the rest invested. This allows you to lock in gains while staying exposed to long-term compounding. Avoid panic selling on short-term corrections. 

Should I invest in them directly or through SIPs?

If you prefer disciplined investing, use Stock SIPs (systematic investment in individual stocks). This helps average out entry prices and reduce the impact of market timing. 

What are the long-term prospects for Aurobindo Pharma?

Aurobindo Pharma benefits from India’s dominance in global generics. Its strong manufacturing base, regulatory approvals, and diversified product pipeline make it a steady long-term play. However, investors should watch for FDA inspections and pricing pressure in the U.S. market. 

What should I do if a fundamentally strong stock underperforms for 2–3 years?

Recheck the earnings trend, sector outlook, and management commentary. If fundamentals remain intact but sentiment is weak, it might be a good accumulation opportunity rather than an exit signal. Patience is often the difference between average and exceptional returns.