Best Shares to Buy for Beginners

BEST SHARES TO BUY FOR BEGINNERS 


BEST SHARES TO  BUY FOR BEGINNERS

If you are someone who does have little idea about stockmarkets, or maybe the only exposure you had in equities was through mutual fund investments and if you are thinking to buy stocks for the first time , then friends here I have 5 fundamentally strong shares on which you can bank upon for long  term, also we will be seeing the reasons for investing in these shares.

Friends in most cases , I have seen that people who buy stocks for the first time do it on recommendations of any friend , relative or a neighbour without any research from their own side which often results into losses. Then once they have burnt their fingers they seldom return to stock markets again.

Mr Warren buffet one of the biggest value investor , the world has ever seen has taught us this big principle NEVER EVER LOOSE YOUR CAPITAL.

And the best way to protect your capital is by investing in good companies which have good fundamentals, enjoys the trust of people, has consistently proven itself and has very good future prospects.

So friends given below is the list of BEST SHARES TO BUY FOR BEGINNERS 

1. HDFC BANK


If you want a dream portfolio , then I believe you must have a good banking stock in it . I can't see a better stock than HDFC BANK which is reliable n trustworthy at this juncture.

HDFC BANK is the biggest player in the private sector ( I'm not a fan of psu banks for obvious reasons).India is developing country n hence its banking sector is sure to grow at a great pace.

Speaking of Hdfc bank it is has registered a cagr of more than 20% in last five years n many stock market pundits are recommending this stock to their clients .

The biggest problem for banking space are the npas ( non performing assets) . And believe me this is the worst time for npas and during these trying times also Hdfc bank has managed to keep its npas at 1.33% ( which is very very less )

Also the projected growth rate for hdfc bank for next 3 years is 24%. Its market share in loans n deposits are also on rise. If you are comparing hdfc bank with its peers , you see that it is better than them in almost all aspects. I admit that at current levels valuations are high but considering the fundamentals it has n the trust it enjoys among the folks , I think you should definitely have this gem in your portfolio. 


2. ITC


ITC is a market giant in FMCG (fast moving consumer goods)
sector. This company enjoys multi-business portfolio encompassing wide range of businesses. ITC has its presence in cigarettes n tobacco, information technology, hotels, packaging, agri-exports, foods, lifestyle retailing and paper industries .

Let me name some of the products of this company , that we come across on a daily basis.

Cigarettes - wills, gold flake , sciccors, 555.( there are more)

Foods - aashirwad, sunfeast, yippee, bingo and more

Personal care - fiama di wills, vivel ,engage and more

Hotels - ITC HOTELS , second largest chain of hotels in India .

Stationery- classmates, paperkraft, colour crew

It is estimated that by 2030 its revenue from fmcg business alone would grow up to 1 lakh crores, which is at present only 10 thousand crores. Company has plans to launch 30 to 40 products every year. Even last year, after patanjali it was ITC which launched maximum number of products. Its paper business is going to get a boost because of the plastic ban.

Now when we look at the valuations, ITC ( pe =32.17) looks a lot more cheaper than its peers like HUL (pe=63.34) , NESTLE (66.49), DABUR (57.23) .

Earlier ITC was heavily dependent on its cigarettes business, but now since company has so many diversified businesses under its belt , we can surely place our bets on it.


3. TCS


If you are a beginner in stock market then you must have TCS in your investment basket. Why? let's see..

Tata Consultancy services a member of TATA GROUP OF COMPANIES has grown to its current position as the largest IT services firm in ASIA. This company operates in 46 countries.

It is the largest IT employer in INDIA. TCS provides services to wide range of segments like banking n financial services, energy , resources n utilities ,government, telecom ,media n information services etc.

TCS has taken the maximum advantage of the digital revolution that started globally. Out of the total revenue of the company 24% revenue comes from digital business.

From many years it has been generating superior returns for its investors. This year TCS issued bonus shares also (1:1).

Talking about the market cap of this company it's around 8 lakh crores.

While rupees near constant glide against the dollar is a macroeconomic concern, it has proved to be a boon for IT giants like TCS.

So looking at the bright future company has, one can blindly invest in it.


4. Larsen n toubro


I just couldn't help myself from adding L& T into this list .
L&T is a very fundamentally strong company from infra space.

L&T is a technology ,engineering, construction and manufacturing company .It is one of the most respected companies Indias private sector.

L&T is one of India's leading companies for supply of Defence Equipment and Systems in the private sector, with over 30 years of experience in this field.

L&T has been able to manage its cash reserves in a very disciplined n efficient manner. Infact this August company offered buyback offer to its shareholders at a premium of nearly 13%.

Over last couple of years, we have seen that company has retreated from its non core areas .

Hence this stock is a definite buy .


5. RELIANCE INDUSTRIES


Last but not the least stock that I recommend to all the new entrants in the market is RELIANCE INDUSTRIES.

RELIANCE INDUSTRIES is a flagship company of RELIANCE GROUP OF COMPANIES founded by MR DHIRUBHAI AMBANI.

RELIANCE INDUSTRIES is a FORTUNE GLOBAL 500 COMPANY and is the largest private sector company of INDIA.

RELIANCE enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products.

Quarter after quarter company has produced great numbers.


So friends these are the BEST SHARES TO BUY FOR BEGINNERS 

Friends, we have kept things quite simple here ,since the motto of this article is to guide first time investors to buy stocks, we have chosen some fundamentally n technically sound stocks for long term , which will ensure safety of one's capital even if any significant downfalls happens in markets.

However it's a request to all,  before putting your hard earned money into anything, please do take sometime for your own research.

Disclaimer


This article is strictly for informational purposes only. It is not a solicitation to buy, sell in securities or other financial instruments.





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