4 Fundamentally Strong Stocks for Long-Term Investment with returns of up to 81%

Synopsis: This article highlights four fundamentally strong stocks with robust financials, strong capital efficiency, and low leverage, offering long-term investment potential with an expected upside of up to 8 percent.

These stocks stand out due to their strong fundamentals, reflected in high ROCE and ROE, indicating efficient capital allocation and consistent profitability. Additionally, low debt levels enhance financial stability, reducing risk during market volatility and enabling sustainable long-term growth.

Investors should watch these companies as they operate in structurally growing sectors, supported by favourable industry trends and scalable business models. Combined with healthy balance sheets and earnings visibility, they offer potential for steady compounding and meaningful upside over the long term. Here are 4 fundamentally strong stocks, good for long-term investment

Polycab India Ltd

Polycab is India’s leading manufacturer of cables and wires and allied products such as uPVC conduits, lugs, and glands. We have a range of cables and wires for practically every application. More recently, Polycab has also launched a wide range of consumer electrical products like Fans, Switches, Switchgear, LED lights and Luminaries, Solar Inverters, and Pumps.

With a market capitalization of Rs 1,03,457 crore, the share of the company closed at Rs 6,871.85 per share from the previous day’s close. The company has a ROCE of 29.7 percent and ROE of 21.45 percent reflect strong fundamentals, while a low debt-to-equity ratio of 0.02 indicates balance sheet strength. Motilal Oswal has set a target price of Rs 9,600, implying an upside of 39.7 percent.

Persistent Systems Ltd

Persistent Systems provides software engineering and strategy services to help companies implement and modernise their businesses. It has its own software and frameworks with pre-built integration and acceleration. It also has a partnership with providers such as Salesforce and AWS.

With a market capitalization of Rs 82,477 crore, the share of the company closed at Rs 5,228.35  per share from the previous day’s close. The company has a ROCE of 30.4 percent and ROE of 24.1 percent reflect strong fundamentals, while a low debt-to-equity ratio of 0.06 indicates balance sheet strength. Motilal Oswal has set a target price of Rs 8,500, implying an upside of 62.57 percent.

Apar Industries Ltd

Apar, founded by Mr Dharmsinh D. Desai in 1958, is a market leader in India with a global presence. Contributing to India’s process of electrification, it started from manufacturing power transmission cables to having three broad business segments, which are Conductors, Transformers, and speciality oils (TSO), and Power/telecom Cables.

With a market capitalization of Rs 39,516 crore, the share of the company closed at Rs 9,837.65  per share from the previous day’s close. The company has a ROCE of 32.7 percent and ROE of 19.5 percent reflect strong fundamentals, while a low debt-to-equity ratio of 0.14 indicates balance sheet strength. ICICI Securities has set a target price of Rs 12,750, implying an upside of 29.6 percent.

Suzlon Energy Ltd

Suzlon is one of the leading global renewable energy solutions providers. It is a vertically integrated WTG manufacturer. It also undertakes installation and O&M of all WTG sales. Operations include design development and manufacturing of all major components, including rotor blades, tubular towers, generators, control equipment, gears and nacelles.

With a market capitalization of Rs 55,955 crore, the share of the company closed at Rs 40.80 per share from the previous day’s close. The company has a ROCE of 32.5 percent and ROE of 41.4 percent reflect strong fundamentals, while a low debt-to-equity ratio of 0.05 indicates balance sheet strength. Motilal Oswal has set a target price of Rs 74, implying an upside of 81.3 percent.

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