Top Stocks to Buy for Long-Term Investment: Pankaj Pandey of ICICI Securities Recommends Persistent, SBI, DLF & More

Stocks to Buy for the Long Term: Pankaj Pandey of ICICI Securities Picks Persistent, SBI, DLF and More

Introduction: Long-Term Investing Amid Volatile Markets

In an environment where market sentiment swings rapidly and geopolitical tensions stir volatility, retail and institutional investors are increasingly seeking solid, long-term investment opportunities. Understanding this need, Pankaj Pandey, Head of Research at ICICI Securities, has outlined a select list of stocks that hold strong long-term growth potential. His recommendations include Persistent Systems, State Bank of India (SBI), DLF, and other fundamentally robust companies that align with India’s economic trajectory.

This article dives deep into each of these picks, their investment rationale, and why they could be a valuable addition to your long-term portfolio.

1. Persistent Systems: The Flagbearer of Digital Transformation

Overview

Persistent Systems has emerged as a leader in the IT services domain, particularly in digital engineering and cloud transformation. Its consistent financial performance and robust deal wins have caught the eye of top analysts, including Pankaj Pandey.

Why It’s a Top Pick

• Revenue Growth: Persistent has recorded a compounded annual growth rate (CAGR) of over 20% in the last three years.

• Client Stickiness: The company has a diversified clientele with repeat business forming a significant chunk of revenue.

• Future Outlook: With growing demand for AI, cloud solutions, and data analytics, Persistent is well-positioned to capitalize on digital transformation trends.

Analyst Take

Pandey emphasizes that the shift towards technology adoption across sectors will continue to fuel Persistent’s growth. He also highlights the company’s strong balance sheet and disciplined cost management.

2. State Bank of India (SBI): Banking on India's Growth Story

Overview

India's largest lender, SBI, stands as a rock in the country’s financial system. From retail to corporate lending and digital banking, SBI has evolved into a holistic banking powerhouse.

Investment Thesis

• Stable Asset Quality: SBI’s gross non-performing asset (NPA) ratio has improved significantly, reflecting sound credit underwriting.

• Profitability Metrics: Strong growth in net interest income (NII) and healthy margins.

• Government Backing: SBI continues to benefit from implicit government support and policy alignment.

Expert Insight

Pankaj Pandey believes that SBI offers the perfect mix of stability and growth. With a focus on rural expansion and digital infrastructure, the bank is poised to serve the next wave of financial inclusion in India.

3. DLF: Building Wealth through Real Estate

Company Snapshot

DLF, a name synonymous with India's real estate boom, is riding on a renewed interest in both commercial and residential segments. With a rich portfolio of land banks and rental assets, DLF is being repositioned as a wealth creation opportunity.

Why It Makes the List

• Residential Revival: Post-COVID, housing demand has seen a resurgence, especially for premium and mid-income projects.

• Rental Income Stability: DLF’s commercial assets continue to deliver steady rental income, offering resilience against market fluctuations.

• Balance Sheet Strength: The company has made strides in deleveraging, enhancing investor confidence.

Pandey’s Take

According to Pandey, DLF is not just a real estate stock—it’s a bet on India’s urbanization and rising middle-class aspirations. The company's strategic land monetization and luxury projects are expected to boost earnings over the next decade.

4. Bharti Airtel: The Data Powerhouse

Overview

While not always viewed as a typical long-term stock, Bharti Airtel has transformed into a data-centric telecom and digital services company. With robust subscriber growth and a strong presence in Africa, its future looks bright.

Investment Rationale

• ARPU Expansion: The Average Revenue Per User (ARPU) has shown consistent upward momentum, driven by tariff hikes and data consumption.

• 5G Monetization: Airtel is strategically deploying 5G services, opening new avenues of revenue.

• Diversified Offerings: From broadband to enterprise solutions, Airtel is more than just a telecom player.

Analyst Perspective

Pandey considers Airtel as a long-term compounding story driven by India’s digital acceleration. Its ability to monetize across verticals sets it apart from the competition.

5. Infosys: Time-Tested IT Giant

Company Insight

Infosys needs no introduction. As one of the pillars of India’s IT sector, the company has not only weathered storms but also led the pack in digital transformation.

Key Drivers

• Consistent Margins: Despite macroeconomic challenges, Infosys has managed to maintain industry-leading operating margins.

• Strong Client Pipeline: Large deal wins from global giants underline its credibility and execution strength.

• ESG Compliance: Infosys ranks high on environmental and governance metrics, attracting sustainable investors.

Expert Commentary

Pandey believes Infosys represents reliability and innovation. In an era where automation and AI are changing business models, Infosys’ investments in these areas ensure future-readiness.

Sectoral Diversification: A Smart Strategy

Pankaj Pandey’s list spans across sectors—IT, Banking, Real Estate, and Telecom—showing a deliberate effort to hedge sector-specific risks. For retail investors, this presents a blueprint to construct a balanced and future-proof portfolio.

Long-Term Investment Strategy: Tips from Pankaj Pandey

In a recent interaction, Pandey shared key principles that investors should keep in mind:

1. Focus on Fundamentals: Look beyond short-term noise. Strong earnings, efficient management, and market leadership are crucial.

2. Stay Patient: Wealth creation takes time. Avoid the temptation to time the market.

3. Rebalance Annually: While long-term investment is the goal, periodic re-evaluation helps weed out laggards.

4. Use SIP Approach for Stocks: Just like mutual funds, Systematic Investment Plans (SIPs) in stocks can average out entry prices.

Risk Considerations

Every investment comes with risk. While the above stocks have strong fundamentals, investors must be aware of:

• Macroeconomic Headwinds: Inflation, interest rates, and global events can impact performance.

• Regulatory Challenges: Especially for sectors like telecom and banking.

• Execution Risks: Growth projections are contingent on how well companies execute strategies.

As always, conducting due diligence or consulting a certified financial advisor is recommended before investing.

A Portfolio for the Next Decade

Pankaj Pandey’s curated list of long-term stocks is not just a set of popular names—it is a well-thought-out strategy rooted in fundamentals, trends, and economic foresight. Whether it’s Persistent’s digital edge, SBI’s banking strength, or DLF’s real estate potential, each company offers a unique growth narrative.

For investors looking to navigate the next decade with confidence, this portfolio serves as an excellent starting point.