Long-Term Strategy in Volatile Markets: 3 Stocks on the Radar

Larsen & Toubro (L&T) is an Indian company founded by two Danish refugees - Henning Holck-Larsen and Soren Kristian Toubro. If you talk engineering and infra stocks in India, L&T is the first name which comes to mind.

It's one of the top 5 construction companies in India. The company is also engaged in defence manufacturing, IT, and financial services.

L&T's financial statements make for pleasant reading. Sales and profits have seen a steady increase. The company recovered quickly from the pandemic and is now setting growth records.

The company's fundamentals are strong. It has a moderate debt-equity ratio and a steadily growing return on equity. Its cash flows are strong.

Big orders and many sectoral tailwinds have ensured L&T's long term prospects are positive.

L&T Financial Snapshot

In Q3 FY26, L&T's net profit decreased about 4% YoY of Rs 32.15 billion (bn).

Revenue from operations increased 10% Rs 714.5 bn.

The decline in profits compared to the growth in revenue was due to the impact of the implementation of the new labour code to the tune of Rs 13.4 bn.

On a segmental basis, revenue from IT services was up 12% to Rs 136.8 bn, revenue from infrastructure was up 4.9% to Rs 340 bn, and revenue from energy projects was up 15% 127.3 bn.

For more information, check out the L&T's factsheet and quarterly results.

#3 Sun Pharma

Sun Pharmaceutical Industries is India's largest drugmaker by market value.

It's engaged in manufacturing, developing, and marketing a wide range of branded and generic formulations and active pharmaceutical ingredients (API). The company has a wide product portfolio, including generics, branded generics, and speciality products.

It offers medicines in all forms of dosage, including injectables, sprays, ointments, tablets, capsules, and liquids across various therapeutic areas such as cardiology, neuropsychiatry, gastroenterology, dermatology, ophthalmology, and onco-dermatology.

Sun Pharma has 43 manufacturing facilities across India, America, Asia, Africa, Australia, and Europe.

It also has 6 state-of-the-art research and development (R&D) labs in India, Israel, Canada, and the US, focused on generics, finished dosage development, biological support, and new drug development.

Sun Pharma Financial Snapshot

In Q3 FY26, Sun Pharma's net profit jumped 16% YoY to Rs 33.7 bn.

Revenue increased 13.5% YoY to 155.2 bn.

At the operating level, the company's earnings before interest, tax, depreciation and amortisation (EBITDA) increased 23.4% to Rs 42.85 bn.

All the reported numbers were higher that expectations on Dalal Street.

For more information, check out Sun Pharma's factsheet and quarterly results.

Conclusion

We often hear stories on how investing in stocks delivered unbelievably high returns. Investors are fascinated by the multibagger returns that fundamentally strong stocks keep on delivering.

But the most important aspect of investing is often ignored, i.e. the time horizon. History is proof that some of the largest gains have come from investing in long-term stocks.

The key to finding the best long-term stocks is to look at all the aspects of the company. You need to look at the growth opportunities for both revenues and profits, quality of the management, financial performance, track record of dividends, and much more.

Consider all these points holistically. The best stocks for the long term are the ones that have a tick mark against all of them.

Happy investing.