Best Stocks to Watch Over the Next 3 Years

Overview

• Bharti Airtel shows strong long-term growth backed by telecom expansion and rising data demand.

• Larsen & Toubro benefits from India’s infrastructure and capital spending cycle.

• NTPC offers stability with consistent earnings, dividends, and renewable energy expansion.

The Indian stock market is attracting long-term investors amid strong economic growth, infrastructure spending, rising consumption, and government-led reforms. Many large companies are showing great fundamentals and consistent returns. Based on current market data and long-term performance, the stocks listed below are strong candidates to watch over the next 3 years.

Bharti Airtel

Bharti Airtel is one of the strongest players in the Indian telecom sector. The company has a market capitalization of Rs. 11,93,565 crore and a PE ratio of 26.57. Over the last 5 years, the stock has provided returns of 309.90%, indicating strong revenue growth and profits. Airtel’s focus on 5G, higher average revenue per user, and growth in its digital and enterprise segments support long-term investment. Return on equity is 8.11%, while return on capital is 18.01%, showing great operational efficacy.

Larsen & Toubro

Larsen & Toubro is a beneficiary of India’s infrastructure and capital expenditure push. With a market capitalization of Rs. 5,54,046 crore and a PE ratio of 29.04, the company has a large domestic and international order book. The stock has provided 213.48% returns over 5 years and 90.81% over 3 years. ROE is 15.18%, and ROCE is 18.71%, indicating disciplined money management. Long-term growth is supported by infrastructure, defense, power, and heavy engineering projects.

Maruti Suzuki

Maruti Suzuki leads the Indian passenger vehicle market and benefits from rising income levels. The company has a market capitalization of Rs. 5,22,380 crore and trades at a PE of 35.23. Over the past year, the stock has gained 53.86%, while 5-year returns stand at 122.95%. Strong product launches, focus on fuel-efficient vehicles, and exports help the company’s growth. ROE of 15.75% and ROCE of 19.54% suggest decent profits.

Mahindra & Mahindra

Mahindra & Mahindra has decent growth across automobiles, farm equipment, and electric vehicles. The company’s market capitalization is Rs. 4,51,637 crore with a PE ratio of 28.80. Over 5 years, the stock has provided returns of 413.67%, displaying a turnaround and demand. ROE of 15.83% and consistent growth in SUV sales and tractor demand make it a strong long-term contender. The company’s push into electric mobility also adds future growth potential.

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Adani Ports & SEZ

Adani Ports & SEZ is India’s largest commercial port operator with a market capitalization of Rs. 3,15,748 crore. The stock trades at a PE of 27.99 and has delivered a 202.38% return over the past 5 years. Growth in cargo volumes, logistics integration, and port-led industrialization supports long-term expansion. ROE stands at 15.69%, while ROCE is 13.60%, indicating stable returns from capital-intensive assets.

NTPC

NTPC remains a key player in India’s power generation sector. With a market capitalization of Rs. 3,15,481 crore and a PE ratio of 12.94, the stock trades at relatively reasonable valuations. Five-year returns stand at 229.97%, supported by steady earnings and dividend income. The company offers a dividend yield of 2.57%, making it attractive for long-term investors seeking stability. Expansion into renewable energy further strengthens its outlook for the future.

Hindustan Aeronautics

Hindustan Aeronautics has emerged as a major beneficiary of India’s defense indigenization push. The company has a market capitalization of Rs. 2,91,726 crore and trades at a PE of 34.56. Over five years, the stock has delivered massive returns of 943.19%. Strong order books, rising defense exports, and government support drive growth. ROE stands at 26.15%, highlighting efficient use of capital.

Bharat Electronics

Bharat Electronics is crucial in the defense electronics sector. The company has a market capitalization of Rs. 2,87,859 crore and a PE ratio of 50.50. Despite higher valuations, the five-year return of 929.54% shows strong earnings growth and execution. ROE of 24.13% and ROCE of 33.72% suggest strong profitability. Increasing defense spending and export opportunities hint at long-term growth.

Adani Power

Adani Power has shown a sharp turnaround in recent years. The company has a market capitalization of Rs. 2,71,567 crore and trades at a PE of 23.10. Over 5 years, the stock has offered returns of 1,295.64%. ROE stands at 48.28%, indicating strong profitability after balance sheet improvement. Rising power demand and improved plant utilization support future performance.

Eternal

Eternal works in the fast-growing food delivery and quick commerce space. The company has a market capitalization of Rs. 2,70,306 crore and a high PE ratio of 1,489.21, showing growth expectations. While short-term returns have been volatile, 3-year returns stand at 360.31%. Long-term growth depends on cost control and expansion into new services.

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Final Thoughts

These stocks represent stability, growth, and industrial leadership. Strong financial performance, solid long-term returns, and alignment with India’s economic growth make them important stocks to watch over the next 3 years. While market conditions may fluctuate, companies with strong fundamentals have a better chance at providing sustained value over time.

FAQs

What makes these stocks suitable for the next three years?
These stocks have strong financials, consistent returns, and benefit from long-term growth trends in the Indian economy.

Are these stocks suitable for long-term investors?
Yes, they are large, established companies with proven business models and stable market positions.

Do these stocks offer both growth and stability?
Most of these companies provide a balance of steady earnings, sector leadership, and future expansion opportunities.

How important are past returns when selecting stocks?
Past returns indicate performance consistency, but should be considered along with fundamentals and future growth drivers.

Can market volatility affect these stocks?
Short-term volatility may impact prices, but strong fundamentals help these stocks perform better over the long term.