InvestorQ : Are there some safe stocks to buy in this market from a 3 year perspective?
Moii Chavate made post

Are there some safe stocks to buy in this market from a 3 year perspective?

Sam Eswaran answered.
4 years ago

That is a difficult question at a time when majority of the stocks are falling vertically. However, you need to focus on defensives at this point of time. No point in buying high beta names as they are likely to falter and a bounce in the market look to be some time away. Here are four stocks you can consider from a 2-3 year perspective.

· Infosys has been holding well in such a bad market after its last quarter results saw a much better guidance than expected. A much bigger share of digital revenues and maintaining margins despite higher cost are favorable.

· D-Mart or Avenue Supermarts is another stock that looks good even in these bad markets. It has a solid business model with owned real estate, low costs, substantially lower debt and best in class revenue per store and revenue per square feet.

· Britannia looks specifically attractive after it corrected nearly 25% from its peak levels. While there is a slowdown in consumption, as evidenced by Parle, there is also an opportunity for niche high value players like Britannia. Price correction offers a buy.

· Reliance Industries has been one stock that has redefined wealth creation in the last 2 years. With the latest Aramco deal giving them a much richer valuation and their leadership in telecom should help the company hold value.

Of course, be prepared for some downside risk in a volatile market but over the next 2-3 years, these stocks should create good value on your investment.