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India is one of the fastest-growing economies in the world. It offers many opportunities for individual and institutional investors to profit, given that they invest in the right companies. A sound investment strategy is crucial in order to make the right investments or trades. Reading investing books, or following along a trade alert service can help improve decision making and to find the right stocks to trade.
Best Indian Stocks To Buy
Top 10 Best Indian Stocks to Buy and Profit from in 2023
- Best Indian Stocks To Buy
- 1. Bajaj Finserv Ltd. (NSE: BAJAJFINSV)
- 2. Tata Motors Limited ADR (NYSE: TTM)
- 3. Infosys Limited (NSE: INFY)
- 4. Hero MotoCorp (NSE: HEROMOTOCO)
- 5. HDFC Bank Limited (NYSE: HDB)
- 6. Sun Pharmaceuticals (NSE: SUNPHARMA)
- 7. Sify Technologies Limited (NASDAQ: SIFY)
- 8. Mindspace Business Parks REIT (BOM: 543217)
- 9. Bata India (NSE: BATAINDIA)
- 10. Avenue Supermarts (NSE: DMART)
Here’s a list of 10 Indian stocks to buy in 2023 to profit in the upcoming year and beyond.
1. Bajaj Finserv Ltd. (NSE: BAJAJFINSV)
Bajaj Finserv is a Pune-based non-banking financial company that primarily engages in lending, asset management, and Insurance. Although the company’s stocks have dropped about 52% year-to-date, the earnings release for the second quarter of the fiscal year 2022-23, is promising. The total income grew by nearly 88%, and the profit after tax doubled.
The company has also increased its deposit rates thrice in three months to gain lending finances. Any slump is gone, and the demand for finances in India has risen to an eight-year high. State Bank of India expects the interest rates to clock around 12% in 2023 and 2024. Even though the global market slowdown will impact the credit demand in India, lending companies like Bajaj Finserv should be able to deliver solid and profitable returns in the next couple of years.
2. Tata Motors Limited ADR (NYSE: TTM)
The company’s sales in the second quarter of the fiscal year 2023 grew over 18% to $9.76 billion. The company sold over 236,000 vehicles in the quarter, a 46% year-over-year jump. The Electric Vehicle sales more than tripled during the quarter. Tata Motors’ new EV Tiago has received a warm welcome with 20,000 bookings despite a four-month wait before delivery. The demand for electric vehicles is growing in India, and introducing EVs should help Tata Motors grow its sales further. With the surge in sales and Tata paying more attention to the EV market, it is an excellent time to buy Tata Motor shares and hold on to them for a while.
3. Infosys Limited (NSE: INFY)
Infosys is a Bangalore-headquartered multinational that offers numerous IT-related services. The company posted an impressive $4.56 billion in the second quarter of the fiscal year 2022-23, a 14% boost from the prior-year quarter. The EPS increased slightly to 18 cents from 17 cents in the year-ago quarter. The financial performance is sound.
Infosys has expanded its services beyond the traditional realm and now also engages in blockchain, data analytics, and the internet of things (IoT), among other contemporary services. With the U.S.-China Trade War, Infosys and other Indian companies in the IT sector can benefit. Infosys is moving forward in different regions with recent partnerships with Telenor Norway and Envision AESC, a leading battery maker. Infosys is a pretty decent stock to own for the mid to long term, with its strong performance and opportunities lying ahead.
4. Hero MotoCorp (NSE: HEROMOTOCO)
The New Delhi-headquartered Hero MotoCorp is a multinational company producing motorcycles and scooters, enjoying more than one-third of the Indian market share in these segments. The company posted 91.58 billion Indian Rupees in net sales for the second quarter of the fiscal year 2022-23. The EPS dropped to 34.41 Indian Rupees from 37.71 Indian Rupees in the prior-year quarter. Sales of motorcycles are booming, with a 16% sales hike in the first three quarters of the year, and Hero is leading the charge.
The company has also recently launched an electric scooter market to benefit from the astronomical growth in the segment in India. With two-wheeler vehicles growing in India and Hero MotoCorp venturing into the booming electric scooter business, it is a good share to buy and hold for a while.
5. HDFC Bank Limited (NYSE: HDB)
HDFC Bank is a multinational bank of Indian origin. It is in the process of merging with its parent HDFC in a deal worth $40 billion. The merger is expected to be completed in the second quarter of the fiscal year 2024, allowing better client terms and greater profitability for the investors. The bank recently inked a multi-year deal with financial data provider Refinitiv for economic data, allowing greater efficiency and lowering costs in many of its departments. With the demand for debt rising, HDFC Bank looks like a good stock to own in the medium to long term.
6. Sun Pharmaceuticals (NSE: SUNPHARMA)
The India-based international Sun Pharmaceutical has seen its stock prices jump over 21% year-to-date. The company posted revenue of 108 billion in the second quarter of the fiscal year 2023, a 13.1% increase from the prior year period. The sales growth was driven by a 27.5% hike in specialty medicine sales. The profit rose by 10.5% annually to 22.6 billion Indian rupees.
The company also received a nod to use its Neo-Natal drug for seizures in the U.S. from the FDA, and it should be available for patients in the fourth quarter of the current fiscal year. Sun Pharma is expanding its European product base and has also made a recent acquisition in Romania to improve its offerings further. With the current rise of the stock and impressive financial performance, the stock should be a good one to buy.
7. Sify Technologies Limited (NASDAQ: SIFY)
Sify Technologies is an Indian IT company offering various services, including data centers, cloud, managed services, telecom solutions, and application integration services. Sify posted decent numbers in the quarter ending September 30, with $97.3 million in total revenues and $1.4 million in net income.
The company recently partnered with cloud financial management solutions Aquila Clouds for their cloud management platform Cloudfinit. The move will allow financial operations capabilities to Cloudfinit. There is space in many sectors at current due to trade tensions between the U.S. and China, and companies like Sify Technologies can benefit. With a low stock price and plenty of potential opportunities, the company is a good buy for the medium to long term.
8. Mindspace Business Parks REIT (BOM: 543217)
Mindspace Business Parks is a real estate investment trust with assets in some major cities across India. The company maintains an extensive office rental portfolio in cities such as Mumbai, Hyderabad, Pune, and Chennai, some of the major metropolises in the country. 41% of the company’s holdings are located in Mumbai.
Mindspace has a reported occupancy of around 90%. The investment is bound to high dividend yields since real estate investment trusts (REITs) must pay back at least 90% of their net distributable cash flows to stakeholders. The company posted nearly 3.15 billion Indian Rupees in income from operations in the recently concluded quarter, with a profit of 2.83 billion rupees after taxes. The REIT has much potential to grow further, and it is a good time to invest to gain maximum returns.
9. Bata India (NSE: BATAINDIA)
Bata is a significant footwear brand globally, and its Indian business enjoys a fair share of the local market. The company recently posted a 35% increase in sales year-over-year in the second quarter to 8.3 billion Indian Rupees, which should subside investor worries. The profits for the quarter also rose nearly 48% to 548 million Indian rupees and outperformed expectations. The improved profits despite higher raw material costs are a good sign for the company. Inflation, in general, will also favor a brand like Bata, which is much more affordable than some of the other big names, which cost significantly more. The company also pays regular dividends to the stockholders, another incentive for investing in the footwear company.
10. Avenue Supermarts (NSE: DMART)
Avenue Supermarts owns DMart stores across India, a major retail chain. The company posted an impressive 103.85 Billion Indian rupees in revenue from operations, approximately a 36% hike from the prior year’s quarter. DMart has been steadily growing its share in the Indian retail market. With further growth, the company can perform substantially better financially. The company is also expected to add more stores soon, further boosting sales. The lower prices of the products and online presence should also push the company forward. It is an excellent time to invest in the retailer, which has a lot of good things happening at the same time.
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