Investing in the stock market can significantly enhance your financial future. Identifying the right stocks to buy can make a substantial difference in your portfolio returns. This guide will explore the top stocks to invest in India for 2024, chosen based on strong buy recommendations from S&P analysts and other financial metrics.
Top 5 Stocks to Buy in 2024
Here are the top 5 stocks recommended by S&P analysts:
| sr no. | Top 5 Stocks | Industry/Sector | Buy Percentage |
| 1 | Shriram Finance | NBFC | 96.77% |
| 2 | SBI Life Insurance | Insurance | 94.44% |
| 3 | Axis Bank | Banking | 93.55% |
| 4 | Mahindra & Mahindra | Auto | 92.86% |
| 5 | Adani Ports | Infrastructure | 91.67% |
1. Shriram Finance
Shriram Finance, part of the Shriram Group, is one of India’s largest non-banking financial companies (NBFC). Its diverse product portfolio, large asset base, and growing customer base make it a favorite among analysts. The stock was added to the Nifty50 pack in March 2024.
2. SBI Life Insurance
SBI Life Insurance is a leading player in the insurance industry with strong parentage. This large-cap company boasts a vast customer base with a network of over 1,000 branches. Its strong fundamentals make it a popular choice among analysts.
3. Axis Bank
Axis Bank is one of the largest private banks in India with a high buy rating percentage from analysts. It has a strong presence in the banking space in India and has consistently rewarded investors.
4. Mahindra & Mahindra
Mahindra & Mahindra is a leading player in the automotive sector. Its wide range of products, from SUVs and passenger cars to commercial vehicles, makes it a popular stock among analysts.
5. Adani Ports
Adani Ports, part of the Adani Group, is India’s largest port company. Its strong presence across ports and terminals, along with stable fundamentals, has earned it positive views from analysts.
Best Stocks to Invest in 2024 Based on Different Metrics
On 5-Year CAGR Basis
| sr.no. | Company Name | Market Cap (₹ crore) | Close Price (₹) | 5Y CAGR (%) |
| 1 | Adani Green Energy Ltd | 2,59,995.17 | 1,641.35 | 113.1 |
| 2 | Tanla Platforms Ltd | 14,110.89 | 1,049.45 | 99.93 |
| 3 | Tata Teleservices (Maharashtra) Ltd | 17,574.80 | 89.9 | 87.3 |
| 4 | Rattanindia Enterprises Ltd | 11,343.99 | 82.15 | 86.92 |
| 5 | Fertilisers and Chemicals Travancore Ltd | 53,228.14 | 812.6 | 82.75 |
On Free Cash Flow (FCF) Basis
| sr.no. | Company Name | Market Cap (₹ crore) | Close Price (₹) | Free Cash Flow (₹ crore) |
| 1 | Life Insurance Corporation of India Ltd | 5,73,803.79 | 907.2 | 53,632.04 |
| 2 | Oil and Natural Gas Corporation Ltd | 2,94,818.84 | 234.35 | 47,418.88 |
| 3 | Tata Consultancy Services Ltd | 13,89,996.86 | 3,841.80 | 38,865.00 |
| 4 | Bharti Airtel Ltd | 6,99,920.75 | 1,189.95 | 38,786.10 |
| 5 | Power Grid Corporation of India Ltd | 2,28,980.87 | 246.2 | 31,102.17 |
On ROCE Basis
| S.No | Company Name | Market Cap (₹ crore) | Close Price (₹) | ROCE (%) |
| 1 | MMTC Ltd | 11,347.50 | 75.65 | 129.26 |
| 2 | Suzlon Energy Ltd | 56,025.19 | 41.2 | 117.36 |
| 3 | Hindustan Zinc Ltd | 1,31,513.05 | 311.25 | 86.72 |
| 4 | Procter & Gamble Hygiene and Health Care Ltd | 56,046.06 | 17,265.80 | 80.86 |
| 5 | Colgate-Palmolive (India) Ltd | 68,491.42 | 2,518.20 | 78.66 |
On ROE Basis
| S.No | Company Name | Market Cap (₹ crore) | Close Price (₹) | ROE (%) |
| 1 | MMTC Ltd | 11,347.50 | 75.65 | 247.266 |
| 2 | Tata Communications Ltd | 49,266.53 | 1,728.65 | 143.41 |
| 3 | Life Insurance Corporation of India Ltd | 5,73,803.79 | 907.2 | 124.54 |
| 4 | Nestle India Ltd | 2,42,384.29 | 2,513.95 | 108.52 |
| 5 | Shoppers Stop Ltd | 7,839.95 | 713.05 | 82.28 |
On Net Profit Margin Basis
| S.No | Company Name | Market Cap (₹ crore) | Close Price (₹) | Net Profit Margin (%) |
| 1 | Bajaj Holdings and Investment Ltd | 91,159.96 | 8,190.95 | 93.38 |
| 2 | IDFC Ltd | 18,447.82 | 115.3 | 90.31 |
| 3 | Tata Investment Corporation Ltd | 22,959.13 | 4,537.80 | 80.37 |
| 4 | Indian Energy Exchange Ltd | 12,164.63 | 136.8 | 62.76 |
| 5 | HDFC Asset Management Company Ltd | 73,347.77 | 3,435.75 | 57.33 |
Factors to Consider Before Investing
Market Capitalization
Understanding a firm’s capitalization helps prevent overpaying for an investment. Larger market capitalization may suggest stability, while smaller ones might indicate higher growth potential.
Shares and Profits
A descending number of shares coupled with consistent profits can depict greater value for investors. Analyze the company’s earnings reports to gauge its financial health and potential for sustained growth.
Price-to-Earnings Ratios (P/E)
Long-term investments with agreeable P/E ratios are considered bankable. A lower P/E ratio may indicate that the stock is undervalued, providing an opportunity for potential future gains.
Research and Analysis
Conduct thorough research on each of the best stocks to invest in. Examine their performance history, growth prospects, and how well they align with current market trends. Informed decisions based on comprehensive analysis can lead to more successful investments.
Choosing the Right Broker
Selecting the right broker is crucial for a smooth investment experience. Consider factors such as your personal goals and trading needs, fees and commissions, account and trading limitations, and special tools offered by the broker.
Investment Horizon
Determine how long you plan to hold the investment. Different stocks may be suitable for short-term gains or long-term growth. Align your investment horizon with the stock’s historical performance and future potential.
Risk Tolerance
Assess your risk tolerance level before investing. Stocks inherently involve a degree of risk, and understanding your comfort level with volatility will help you choose stocks that align with your risk appetite.
Reasons for Investment
Analyze your reasons for purchasing a stock before making the investment. Consider whether you are seeking capital appreciation, dividends, or a combination of both. Clearly defined goals will guide your investment strategy.
Regulatory Compliance
Search for a stockbroker registered with SEBI (Securities and Exchange Board of India) or the relevant regulatory authority. Dealing with registered brokers provides a safer and more safeguarded approach to handling stocks.
Conclusion
Investing always comes with risks, and it’s crucial to conduct thorough research and possibly consult with a financial advisor before making any decisions. Diversifying your portfolio across different sectors can help mitigate risk. The year 2024 holds promise for investors willing to explore opportunities
Also read: The 10 Best Performing Stocks in the Last 25 Years
Disclaimer: Please don’t make your investment decisions just based on the target prices on this site. They are only guesses. Investing in stocks always has risks. The info here is just to help you learn and speculate and isn’t financial advice. All investments can lead to gains or losses, and nothing is sure. We aren’t responsible for any money you might lose from the info on this site. Always do your own research before investing.
