In this article, we will discuss the 10 Best Indian Stocks to Buy for Next 5 Years.
Over the last 5 years, MSCI India delivered a total return in US dollars of 145% as compared to 94% for global equities and 39% for the emerging markets, according to Morgan Stanley. The firm also highlighted that Indian equities remain its most preferred market within Asia for 3 critical reasons- Its strong economic and earnings growth, reduced exposure to trade tariffs, and a robust domestic investor base.
Morgan Stanley believes that these factors result in structural outperformance not just in Asia but globally, and with significantly reduced volatility as compared to the peer group markets.
What Lies Ahead for the Broader Indian Economy?
Morgan Stanley expects India to make up 20% of the overall incremental global GDP growth over the coming decade. Notably, manufacturing competitiveness continues to improve due to the robust infrastructure in power, ports, roads, freight transport systems, and investments in social infrastructure, including water, sewage, and hospitals.
Also, India’s growing middle class has been providing market opportunities to companies throughout several product categories. There is strong domestic consumption, a robust investment cycle led by public and private capital expenditure, and structural reforms, added Morgan Stanley. It also expects strong corporate earnings growth.
Amidst such trends, we will now have a look at the 10 Best Indian Stocks to Buy for Next 5 Years.
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Our Methodology
To list the 10 Best Indian Stocks to Buy for Next 5 Years, we used a screener to shortlist Indian companies trading on the US exchanges. Next, we narrowed our list by choosing the ones popular among hedge funds. Finally, the stocks have been arranged in ascending order of their hedge fund sentiments, as of Q1 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Indian Stocks to Buy for Next 5 Years
10. Sify Technologies Limited (NASDAQ:SIFY)
Number of Hedge Fund Holders: 1
Sify Technologies Limited (NASDAQ:SIFY) is one of the Best Indian Stocks to Buy for Next 5 Years. The company remains focused on its commitment to cost efficiency and fiscal discipline despite navigating an increasingly complex business environment. The company saw revenues of INR10,723 million in Q1 2026, reflecting an increase of 14% YoY. The revenue split among the businesses was as follows: Network services (41%), Data Center services (37%), and Digital services (22%). During the quarter, Sify Technologies Limited (NASDAQ:SIFY) commissioned 8.6 MW of additional data center capacity.
Sify Technologies Limited (NASDAQ:SIFY) highlighted that national programs such as Digital India and the India AI mission are resulting in investment in compute infrastructure and digital access, with regulatory clarity unlocking private capital into hyperscale data centers, 5G, and beyond. Moving forward, the company plans to deepen its focus on enabling AI workloads and bringing a new generation of forward-thinking enterprises. Given Sify Technologies Limited (NASDAQ:SIFY)’s integrated infrastructure, digital infrastructure, and proven service maturity, it remains uniquely placed to lead.
Sify Technologies Limited (NASDAQ:SIFY) provides information and communication technology solutions and services in India and internationally. It has its headquarters in Chennai, India.
9. Yatra Online, Inc. (NASDAQ:YTRA)
Number of Hedge Fund Holders: 5
Yatra Online, Inc. (NASDAQ:YTRA) is one of the Best Indian Stocks to Buy for Next 5 Years. Analyst Scott Buck of H.C. Wainwright reiterated a “Buy” rating on the company’s stock, while retaining a price objective of $3.00. The analyst’s rating is backed by a combination of factors demonstrating Yatra Online, Inc. (NASDAQ:YTRA)’s robust performance and growth potential. The company showcased significant strength in its corporate travel and MICE (Meetings, Incentives, Conferences, and Exhibitions) segments, offsetting the weaker trends in the B2C sector.
Yatra Online, Inc. (NASDAQ:YTRA) onboarded 35 new corporate clients in Q4 2025, fueling its annual billing potential significantly. The acquisition of Globe Travels strengthened Yatra Online, Inc. (NASDAQ:YTRA)’s position, which enabled it to target for top-three spot in the broader Indian MICE market ahead of schedule. The growth opportunities in this market offer the company a unique opportunity to tap more market share.
Yatra Online, Inc. (NASDAQ:YTRA) ended FY 2025 on a strong footing, delivering revenue for 3 months to March 31, 2025 of INR2,192.5 million (US$25.7 million), up by 114.0% YoY. This was aided by growth in the company’s MICE business and the inorganic contribution from the Globe Travels acquisition. Moving forward, robust corporate client acquisition, growth in the MICE segment, and ongoing investment in its proprietary technology platform, which includes AI-powered personalization and booking tools, place it well for the next growth phase.
Yatra Online, Inc. (NASDAQ:YTRA) operates as an online travel company. It is based in Gurugram, India.
8. Dr. Reddy’s Laboratories Limited (NYSE:RDY)
Number of Hedge Fund Holders: 16
Dr. Reddy’s Laboratories Limited (NYSE:RDY) is one of the Best Indian Stocks to Buy for Next 5 Years. Dr. Reddy’s Laboratories Limited (NYSE:RDY) and Alvotech announced that they have entered into a collaboration and license agreement to co-develop, manufacture, and commercialize a biosimilar candidate to Keytruda® (pembrolizumab) for the global markets. Just to provide a brief overview, Keytruda® (pembrolizumab) is indicated for treating numerous cancer types.
This collaboration combines Dr. Reddy’s Laboratories Limited (NYSE:RDY)’s and Alvotech’s proven capabilities in biosimilars, which will help speed up the development process and extend the global reach for the biosimilar candidate. Dr. Reddy’s Laboratories Limited (NYSE:RDY)’s top management believes that the collaboration reflects its ability to develop and manufacture high-quality and affordable treatment options. Furthermore, oncology remains a top focus therapy area, and this collaboration is expected to further enhance its capabilities in oncology, with pembrolizumab representing one of the most critical therapies in immuno-oncology.
Dr. Reddy’s Laboratories Limited (NYSE:RDY) reported its financial results for the quarter and year ended March 31, 2025. It saw double-digit growth across its businesses, thanks to the successful product launches, higher revenues from key products in the US, and the integration of the acquired NRT business. Its FY 2025 consolidated revenues came in at INR325.5 billion, reflecting YoY growth of 17%. Its underlying revenue growth, excluding NRT business, stood at 12% YoY.
Headquartered in Hyderabad, India, Dr. Reddy’s Laboratories Limited (NYSE:RDY) operates as an integrated pharmaceutical company.
7. Wipro Limited (NYSE:WIT)
Number of Hedge Fund Holders: 19
Wipro Limited (NYSE:WIT) is one of the Best Indian Stocks to Buy for Next 5 Years. Reuters highlighted that Wipro Limited (NYSE:WIT) reported better-than-expected quarterly earnings, thanks to the improved client spending in segments of its Americas business. The company’s gross revenue came in at INR221.3 billion ($2,581.6 million), reflecting a decline of 1.6% QoQ and an increase of 0.8% YoY. Net income for Q1 2026 came in at INR33.3 billion ($388.4 million), a decline of 6.7% QoQ and an increase of 10.9% YoY.
Reuters, while quoting analysts at Morgan Stanley, highlighted that robust deal wins at Wipro Limited (NYSE:WIT) place it well for growth in the second half of the fiscal year. The firm also highlighted that analysts at Investec believe deal wins were the highlights for Q1 2026, and these were the highest in over 13 quarters. Notably, total bookings came in at $4,971 million, reflecting a rise of 24.1% QoQ and 50.7% YoY in constant currency. The large deal bookings amounted to $2,666 million, implying 49.7% growth QoQ and 130.8% growth YoY in constant currency.
Reuters also reported that Morgan Stanley believes that such large deals remain concentrated among Wipro Limited (NYSE:WIT)’s top clients, reflecting greater wallet share.
Wipro Limited (NYSE:WIT) operates as an IT, consulting, and business process services company. The company is based in Bengaluru, India.
6. ReNew Energy Global Plc (NASDAQ:RNW)
Number of Hedge Fund Holders: 23
ReNew Energy Global Plc (NASDAQ:RNW) is one of the Best Indian Stocks to Buy for Next 5 Years. Roth Capital lifted the price objective on the company’s stock to $8 from $7.50, while keeping a “Buy” rating, as reported by The Fly. This comes after a consortium of investors announced a plan to raise the offer price for ReNew Energy Global Plc (NASDAQ:RNW) to $8.00 per share from $7.07 per share offer. The firm opines that the proposal is more likely to be acceptable to investors, considering the higher premium.
ReNew Energy Global Plc (NASDAQ:RNW) announced its unaudited consolidated IFRS results for Q4 2025 and FY 2025. It registered its second consecutive year of profit since listing, with commissioned capacity increasing 12.4% YoY to ~10.7 GWs (net of 300 MWs of assets sold during FY 2025) as at March 31, 2025. Subsequent to the fiscal year-end, ReNew Energy Global Plc (NASDAQ:RNW) commissioned 466 MWs, of which 436 MWs is solar and 30 MWs is wind. This took the total commissioned capacity to ~11.2 GWs.
ReNew Energy Global Plc (NASDAQ:RNW) saw a 4x jump in Q4 2025 net profit, thanks to the robust growth in the manufacturing business. Notably, its net profit for Q4 2025 came in at INR 3,137 million (US$ 37 million) as compared to INR 609 million (US$ 7 million) for Q4 2024.
ReNew Energy Global Plc (NASDAQ:RNW) is engaged in generating power via non-conventional and renewable energy sources in India.
5. WNS (Holdings) Limited (NYSE:WNS)
Number of Hedge Fund Holders: 24
WNS (Holdings) Limited (NYSE:WNS) is one of the Best Indian Stocks to Buy for Next 5 Years. Deutsche Bank analyst Nate Svensson resumed coverage of the company’s stock with a “Hold” rating and a price objective of $76.50, as reported by The Fly. Notably, the firm resumed coverage on 25 stocks in the broader payments processors and IT services industry. As per the analyst, both industries have significantly underperformed the S&P 500 Index on a YTD basis as investor expectations increased around the November election, resulting in an end-of-year run-up, which has since proven overly optimistic.
In the current uncertain environment, Deutsche favors the high-quality compounders possessing consistent sales growth, margin expansion, and FCF generation. WNS (Holdings) Limited (NYSE:WNS)’s profit in Q4 2025 came in at $50.8 million compared to $14.5 million in Q4 2024 and $48.6 million in the prior quarter. On a YoY basis, the profit growth was because of $30.9 million goodwill impairment charge in Q4 2024, $12.2 million from a facility asset sale in India in Q4 2025, reductions in ADS transition costs, as well as favorable currency movements.
However, such benefits were partially offset by increased acquisition-related expenses, higher investments, and an elevated effective tax rate. Apart from the facility asset sale, WNS (Holdings) Limited (NYSE:WNS)’s sequential growth in Q4 2025 profit stemmed from increased volumes, operating margin expansion, and favorable currency movements. Diamond Hill Capital, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“On an individual holdings’ basis, top contributors to return in Q1 included several positions from our long book, including American International Group (AIG), WNS (Holdings) Limited (NYSE:WNS) and VeriSign. Business process management company WNS indicated it expects to return to steady, predictable growth following several quarters of uncharacteristically volatile fundamentals, giving a boost to shares in the quarter.”
WNS (Holdings) Limited (NYSE:WNS) is a business process management (BPM) company that provides data, voice, analytical, and business transformation services. It is based in Mumbai, India.
4. MakeMyTrip Limited (NASDAQ:MMYT)
Number of Hedge Fund Holders: 26
MakeMyTrip Limited (NASDAQ:MMYT) is one of the Best Indian Stocks to Buy for Next 5 Years. MakeMyTrip Limited (NASDAQ:MMYT) delivered record gross bookings and revenue in FY 2025, while strong growth and expanding margins continue to underscore the strength of its platform, brands’ popularity, and the sustained momentum across domestic and international travel demand. MakeMyTrip Limited (NASDAQ:MMYT)’s investments in new demand segments and personalized customer experiences supported it in growing its customer base and fueling high repeat bookings. The company’s repeat rate in Q4 2025 remained healthy at a 70%+ rate.
The company saw revenues of $245.5 million in the quarter ended March 31, 2025, reflecting 21.0% growth YoY, mainly due to an increase of 11.9% in revenue from its air ticketing business, and a rise of 16.9% in revenue from its hotels and packages business. However, a revenue increase of 40.8% from its bus ticketing business and a rise of 46.0% from its “others” business also contributed to the overall revenue growth.
During the year, MakeMyTrip Limited (NASDAQ:MMYT) announced the acquisition of the Happay Expense Management Platform from CRED in order to strengthen its corporate business proposition. This acquisition reinforces MakeMyTrip Limited (NASDAQ:MMYT)’s commitment to be a go-to platform for comprehensive corporate travel and expense management solutions.
Based in Gurugram, India, MakeMyTrip Limited (NASDAQ:MMYT) operates as a travel service provider.
3. Infosys Limited (NYSE:INFY)
Number of Hedge Fund Holders: 30
Infosys Limited (NYSE:INFY) is one of the Best Indian Stocks to Buy for Next 5 Years. In FY 2025, the company delivered $19,277 million in revenues, reflecting a rise of 4.2% in constant currency. Infosys Limited (NYSE:INFY)’s performance for the year remained robust in terms of revenues, expansion in operating margins, and the highest-ever free cash generation. Moving forward, the company’s depth in AI, cloud, and digital, and its strength in cost efficiency, automation, and consolidation place it well.
Infosys Limited (NYSE:INFY) announced the expansion of its collaboration with Siemens AG in a bid to accelerate Siemens AG digital learning initiatives with Gen AI. For FY 2025, Infosys Limited (NYSE:INFY)’s FCF was the highest ever at $4.1 billion, reflecting an increase of 42% YoY. Notably, the FCF as a percentage of net profit for the financial year stood at 129%. The company expects FY 2026 FCF to be more than 100% of net profit.
Infosys Limited (NYSE:INFY) highlighted that, because of recent tariff announcements, client budgets are expected to be tightened, while there remains an increased caution. Decision cycles have been getting stretched with respect to discretionary spend and large deals. Throughout the geos, there remains an increased focus on AI, cloud, estate modernization, cost takeout, and investments in core tech capabilities.
Headquartered in Bengaluru, India, Infosys Limited (NYSE:INFY) provides consulting, technology, outsourcing, and digital services.
2. ICICI Bank Limited (NYSE:IBN)
Number of Hedge Fund Holders: 36
ICICI Bank Limited (NYSE:IBN) is one of the Best Indian Stocks to Buy for Next 5 Years. Reuters highlighted that ICICI Bank Limited (NYSE:IBN) beat profit forecasts for Q1 2026, thanks to healthy loan growth that led to increased core lending income. The bank’s standalone net profit went up by 15.5% to INR127.68 billion ($1.48 billion) during the April-to-June quarter, above the average analyst forecast of INR120.24 billion.
Despite slower credit growth throughout the industry, ICICI Bank Limited (NYSE:IBN) saw 12% growth in its loan book, driven primarily due to a 29.7% growth in loans to businesses, added Reuters. ICICI Bank Limited (NYSE:IBN)’s net interest margin declined to 4.34% from 4.36% a year earlier and 4.41% in the previous quarter. This was because of the central bank’s recent rate-cut actions. Its asset quality improved, with the gross non-performing assets ratio coming at 1.67% at the end of June compared to 2.15% in the same period last year.
Reuters highlighted that Indian lenders continue to closely monitor unsecured lending, following an increase in bad loans in the segment. This move supported the asset quality. ICICI Bank Limited (NYSE:IBN)’s net NPA ratio came at 0.41% as of June 30, 2025, compared to 0.43% as of June 30, 2024.
ICICI Bank Limited (NYSE:IBN) provides various banking and financial services to retail and corporate customers. It has its headquarters in Mumbai, India.
1. HDFC Bank Limited (NYSE:HDB)
Number of Hedge Fund Holders: 51
HDFC Bank Limited (NYSE:HDB) is one of the Best Indian Stocks to Buy for Next 5 Years. Reuters highlighted that the company reported higher-than-expected quarterly profit thanks to a surge in interest income from loans and treasury gains, despite an increase in provisions for bad loans. HDFC Bank Limited (NYSE:HDB)’s standalone net profit went up by 12.2% to INR181.55 billion ($2.11 billion) during the April-to-June quarter, above the average analyst forecast of INR172.84 billion, reported Reuters. Its provisions for bad loans increased five-fold to INR144 billion.
Reuters, while quoting HDFC Bank Limited (NYSE:HDB)’s exchange filing, noted that most of such provisions were not related to any actual bad loans. These acted as a countercyclical buffer so that the balance sheet becomes more resilient. The lenders in India continue to face higher bad loans in segments like microfinance and unsecured portfolio, prompting them to set aside more funds for potential defaults and to strengthen the balance sheets, noted Reuters.
This firm also added that, while overall bank credit growth witnessed a slowdown in India, HDFC Bank Limited (NYSE:HDB) saw growth of 6.7% for its overall loan book, thanks to the 17.1% increase in loans to small and medium businesses.
Brown Advisors, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“HDFC Bank Limited (NYSE:HDB) has shown robust fundamental business drivers, but the shares have relatively underperformed since its merger with former parent HDFC Ltd. This merger enhances HDFC Bank’s long-run business opportunities, particularly mortgages, in the Indian market but comes with short-term sub-optimal funding which we expect to unwind over the next couple of years. With an enhanced competitive position, we feel it unlikely this remains an issue over time. HDFC Bank has also shown good downside protection historically when the credit cycle turns, and the bank’s defensive lending practices allow it to outperform peers. Impressively, management has expanded lending at the right time historically too. We believe these characteristics remain intact.”
Headquartered in Mumbai, India, HDFC Bank Limited (NYSE:HDB) is engaged in providing banking and financial services to individuals and businesses.
While we acknowledge the potential of HDB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HDB and that has 100x upside potential, check out our report about this cheapest AI stock.
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