6 Stocks To Buy And Hold For The Next 3-5 Years

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Benchmark Indian indices gained good ground this year. In fact, the markets have gone nowhere in the last 36 months that the Narendra Modi government has been in charge, after a euphoric run in 2014.

Here are 6 stocks that you can buy and hold, if you have the patience to hold for at least 3-5 years.

Great Prospects Ahead

Sun TV has tied up with several Over The Top companies. This will help Sun to monetize content.

The company has a solid market share in Tamil Nadu with a virtual monopoly, and good market shares across Karnataka, Andhra, Telangana and Kerala.

The company is likely to be a big beneficiary of the digitization process. The DTH business also is doing well. With a dividend yield of near 2 per cent, the stock is a great pick as the p/e is just about 25 times, one year forward earnings. Check stock quote of Sun TV here

High on dividend yield

Coal India is a virtual monopoly business, that is cash rich and debt free. The company has aggressive plans to boost production.

The one good thing is that the dividend yield on the stock is nearly 8 per cent. This is a cash rich, solid dividend paying company and dividends upto Rs 10 lakhs are tax free in the hands of investors. We believe that the stock even if it does not rally too much, will keep giving you dividend yields of 8% or so, making it even better then returns earned from bank deposits.

Check share price of Coal India here

Great revenue visibility

Ahluwalia Contacts has major orders from leading private and public enterprises, including orders from hospitals, the police department and banks.

In fact, the order book is close to Rs 40 billion. The company has managed to reduce its debt this year, which is good, as the business can be highly leveraged. With an expected EPS of Rs 20 for 2017-18, the stock is not expensive at Rs 302. In fact, if you give it a p/e of around 20, the stock should trade at Rs 400 at the very least. Check stock quote of Ahluwalia Contracts here

A better performer in difficult environment

Karnataka is among the few banks, that has not seen its net asset quality deteriorate significantly in the last quarter, as compared to other banks which have been woeful. 

The gross NPA moved from 3.18 to 3.56, which is nominal when one considers other players in the business.

What is interesting is that the company pays a dividend of Rs 5 per share, which translates into a dividend yield of almost 3.67 per cent on the current market price of Rs135. This is a stock that is not at all expensive and is trading at a p/e of just 7 times one year forward earnings. With a high possibility that NPAs would improve in the future, this stock is not a bad bet.

A new addition to the Nifty

Tata Motors Differential Voting Rights was last year added to the Nifty.

This is already seeing the gap between the DVR and the underlying shares reducing significantly. The shares are quoted at Rs 462, while the DVRs are available at just Rs 280.

DVR shares are also entitled to 5% extra dividend. The stock of Tata Motors itself is under valued at just 7 times one year forward earnings. With aggressive plans at the company, the DVR has the potential of doubling in the next few years. Read all about the difference between DVRs and equity share here


Disclaimer: This article is strictly for informational purposes only. It is not a solicitation to buy, sell in equity shares mentioned. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author of this article do not accept culpability for losses and/or damages arising based on information in this article. 

Read more about: sun tv, coal india, karnataka bank
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