The Indian stock market investors are making efforts to ensure the selection of fundamentally strong stocks that can deliver exponential returns in the long term. Stocks known for their overall financial resilience and stability can be found and selected by investors through thorough research.
Out of all the stocks listed on the Indian stock market, Sensex stocks are known for their long-term value and the ability to generate returns to its investors. Tata Motors and ITC are two such Sensex stocks that investors can select for their diversifying investment portfolio. While Tata Motors is engaged in the automotive industry, ITC is a well-established company engaged in FMCG, agricultural, and hospitality businesses.
The following article explores the outlook on the Sensex stocks that investors can select for their investor portfolio to generate the best returns.
Tata Motors
A leading company engaged in the automotive industry, Tata Motors serves as a powerful organization that develops highly efficient automobiles for normal users and commercial trucks. Customers can find diesel-powered and even electric vehicles developed by the company through years of research and development.
The company also works through its luxury subsidiaries, Jaguar and Land Rover, to serve its clients with a larger disposable income. It even has a strong portfolio of electric vehicles both for normal users and even commercial trucks for corporations and companies.
The manifold increase in Tata Motors share price is a testament to its ability to generate returns for its investors, a strong balance sheet, and stable operational margins which makes it a proficient and reliable company for investment purposes.
ITC
ITC is one of the best companies that is known for its diversified business portfolio. Traditionally engaged in cigarette and tobacco sales, the company has completely reinvented itself. It has emerged as a leading FMCG company in India. The company has been able to penetrate its operations across both urban and rural areas through the best discounts and products to its customers.
Moreover, the company has been able to expand beyond its FMCG business into the tourism and hospitality sector. It has allowed the company to diversify its revenue generating capabilities. Stable dividend yields, low debt in the financial books, and a steady flow of income are all the positive points that make ITC a reliable company for long-term investment.
The ITC share price is currently trading at ₹422 per share which is quite low from its 52-week high. This serves as a reliable investment opportunity for investors who wish to select ITC for their portfolio.
Conclusion
Both Tata Motors and ITC are reliable stocks listed on the Indian stock market and are a part of the Sensex. Their strong financial portfolio, stable revenue flow, diversified revenue-generating models, and various other benefits make them a popular choice for investors who wish to include them in their long-term investment portfolio. However, investors must go for proper in-depth research to make a reliable selection. With careful research, investors can make a sound decision regarding stock selection and their inclusion in an investment portfolio.
