With its large scale of operations, Infosys has been able to maintain lower operating costs than its immediate industry rivals that in turn has allowed the company to offer more competitive pricing to its customers. Across the last decade, the company has averaged a dividend yield of 2.4% and recorded an ROE of 30.4%. The company has delivered a good profit of Rs 221.5 bn, a YoY increase of 14%. The company has no debt and continues to maintain a strong liquidity position. TCS has comfortably outperformed its biggest industry peers globally recording a PAT of Rs 384.5 bn, an increase of Rs 58.9 YoY.
But before we go into the history of blue chip stocks, let me reveal the top 10 blue chip stocks in India. With that in mind, we pen down a list of 5 bluechip stocks hitting their 52-week lows. The weak market sentiments, driven by a variety of factors, have sent the stock markets on a roller coaster ride.
Infosys mainly operates in software development, maintenance, and independent validation services to companies in finance, insurance etc. TCS operates in consulting-led, cognitive-powered, integrated portfolio of business, technology, and engineering services and solutions. As on 29 sept 2022, the share price of Nestle India was trading at 18,938 INR. As on Sept 2022 the Market cap of HUL was $78.60 Billion, wchich makes makes HUL the world’s 149th most valuable company by market cap. In private sector Reliance Ind is the highest tax payer company in India.
Open Free Demat Account
The best blue-chip shares to buy now usually are stocks of the bellwethers and trailblazers, currently occupying the highest ranks of any industry. Infosys Ltd was incorporated https://1investing.in/ in 1981 and is now a global IT services and consulting company. They have started their journey from the capital of USD250 to now a USD79.7 Billion company.
There are biggies such as TCS, Birla, Reliance that everyone would expect to be on the list as their global recognition has only led to strengthening their foothold in the domestic markets. Recent times has seen many Indian companies take the globalization route to expand their market reach and enjoyed great success while doing so. The Indian market has grown over the years because of the subsequent rise of Indian domestic companies to gaining the status of a multinational company. Inflation is really on the high rise and its not getting funny.
When The Going Gets Tough, Blue Chips Keep Going
D-Mart is a national supermarket chain that offers customers a range of home and personal products under one roof. As of March 31, 2022 the Company had 284 stores with a Retail Business Area of 11.5million sq. Ft. across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab. Strong procurement abilities, lower priced products along with healthy cost control measures all may result in higher growth in footfalls going ahead. Ft. and translates into industry leading retail store productivity. Hindustan Unilever Ltd. is one of the largest Fast Moving Consumer Goods Companies in India with a heritage of over 80 years.
Blue Chip companies are sought after ones on the stock market due to all the factors that we have detailed out in this article. However, like every other investment, the stocks of these companies must also be tracked as there have been cases where these sought after companies have failed due to poor management or mismanagement. Including them as part of your core holdings within your larger diversified portfolio is advisable. However, a prudent investor would irrespective of the stocks he holds – be it small caps or blue chips will always keep a tab on the latest news, price movements, and chart patterns. Hampered economic scenario and uncertainty which lies ahead of investors, prevalent risk-aversion among market participants have all brought back the interest of many market participants to Blue Chip stocks. Given that these quality companies are more resilient to economic downturns, they may continue to grow or operate profitably even during adverse market conditions.
- The bank has improved its provisions and asset quality sharply over the past few years.
- He related all the high priced stocks with the blue chips which have the highest value in the Game of Poker.
- Profitable companies with low P/B ratios are always preferable as they usually outperform when the market recovers, said analysts.
- Even the best of the companies can struggle, and therefore you should diversify your investments to reduce the risk of losing all your money during a bad run.
- Shares of a company that has been making profits for a long time and paying high dividends to investors are called blue chip shares.
- Blue Chip companies are sought after ones on the stock market due to all the factors that we have detailed out in this article.
We have listed other stocks that we could not include in the top 17 in the ‘honorable mentions’. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for the refund as the money remains in investor’s account. Any investor would want to stake a business that has demonstrated profitability over multiple generations.
As a savvy retail investor, it should be our aim to diversify our portfolio, and not buy into similar funds. ITC Ltd. -ITC Limited is an Indian multinational conglomerate company established in 1910 as the Imperial Tobacco Company of India Limited. ITC boasts of businesses spanning FMCG, Hotels, Paperboards and Packaging, Agri-Business, and Information Technology. The Company is one of India’s most valuable business corporations with a market capitalization of nearly US$ 50 billion and a gross sales value of US$ 10.8 billion. – Since blue chip companies are well-reputed names in the market they cannot risk any delays in paying out the dividends to their shareholders. – One of the biggest benefits of investing in high performing blue stock companies is that it can help investors generate a regular source of passive income.
Nifty Blue Chip Stocks
The second advantage to add blue chip stocks in your portfolio is , it balanced your portfolio in a volatile market condition. So You must add blue chip stocks with strong fundamentals and future growth to achieve a diversified portfolio. So it is always suggested for those person always invest in blue chip stocks, these stock have very low risk comparatively small cap and mid cap. For senior citizens who want to invest in stock market with a limited risk for their portfolio blue chip stocks are good bet. To help you diversify your portfolio, StockBasket has expert-curated baskets of stocks or mini portfolios that can help you to invest in top blue chip companies in the right weightage.
How to buy blue chip stocks?
You can buy blue-chip stocks either individually through your Demat and Trading account or you can invest in various mutual funds (MFs) and thematic exchange-traded funds (ETFs) that track the blue-chip stocks that you are interested in buying.
For Indian businesses, the market standard is S&P CNX Nifty – a well-diversified 50 stocks index of companies from 14 sectors of the economy. Blue chip stocks are high-priced market stocks that are highly respected in the stock market because of their stable financial position and credibility. These companies pay attractive dividends and are highly sought-after by many. Investors would jump at the first chance they get to invest in blue chip companies. The reason why there’s a fight among investors for investing in blue chip company stocks is the fact that these stocks offer a reasonable amount of stability. – The only downside of investing in blue-chip company shares is that they are way more expensive than all available options.
For example Coal India is known to give very good dividend to their shareholder. Generally these companies are either deft Average Entry Level Financial Advisor Salaries in the United States free, or keep partial debt to save some taxes. As on 29 sept 2022, the share of Bajaj Auto was trading around 3487 INR.
More from markets
With a SAMCO account you can invest in StockBasket, Direct Stocks and also Mutual Funds. Written by Deepika Khude Deepika Khude The author is a Certified Financial Planner with 5 years experience in Investment Advisory and Financial Planning. Her strength lies in simplifying complex financial concepts with real life stories and analogies. Her goal is to make common retail investors financially smart and independent.
This has built the foundation of the company’s portfolio of steel products such as hot rolled, cold rolled, coated steel, rebars, wire rods, tubes, wires, etc. With its long presence in the market, ONGC continues to enjoy a leadership position with its proven reserves, stable performance of its subsidiaries and competitive cost structure globally. Over the next few years, the company intends to achieve a zero debt status while continuing to foray into new business opportunities in emerging sectors like new energy. What’s more, the company has largely invested in high growth sectors that is set to lead the company’s next leg of growth. Some are even saying this could be a bubble phase in select bluechip stocks that was just waiting for the pin to burst. Every investor would like to invest in safer stocks and hence are willing to pay higher sums for the luxury.
Which are blue chip companies?
Based on market capitalization, India's leading blue chip companies are the state bank of India, Bharti Airtel, Tata consultancy services, Reliance Industries, Coal India, HDFC, ITC, Infosys, ICICI Bank, ONGC, GAIL, and Sun pharma.
His is going to be a long post, but I promise that it will be worth reading. Therefore, without wasting any further time, let us understand the blue chip companies in India. The modus operandi observed is that once a client pays amount to them, huge profits are shown in his account online inducing more investment. However, they stop responding when client demands return of amount invested and profit earned. Blue Chip companies are stalwarts in their own industry and belong to the mature lot on exchanges. The term ‘Blue Chip’ originates from the round of poker where the blue colored chips are relatively more valuable.
A number of services are provided by HDFC Bank, which include Wholesale banking, Retail banking, Treasury, Auto Loans, Two Wheeler Loans, Personal Loans etc. Reliance is India’s first Indian retailer to cross US $10 billion revenue. With their past performance they have created lots of wealth for their investor. Generally they are market leader in their sector, and they sustained from very long time in the market. Individuals can invest in Blue-chip stocks in India either directly or through Mutual Funds.
The Company is currently being led under the able management of Salil Parekh. A stable debt-to-equity ratio with a sustainable return on equity , interest coverage ratio and superior cash flows. The bank has a market share of 22.9% in deposits and 19.7% share in advances in India with well-diversified loan book exposed to various sectors. The only Indian bank to be featured on the Fortune 500 company list, the State Bank of India is the country’s largest and oldest public sector banks with a history of over 200 years. To strengthen its digital capabilities and expand its global footprint, Infosys has acquired key companies.
Is Tata Motors blue chip?
Many blue chip companies in India like Tata, Reliance, Infosys etc are considered as 'Too-big-to-fail' companies as they have survived and remained profitable for a very long time.
They have one thing in common – they are supreme companies that can fight internal and external financial hurdles, make profits year after year, and are running sustainable businesses for years. These are well-capitalized, well-established, and have shown traits of growth and profitability for years, earning the trust of many. Blue chip companies meaning is having such traits and a firm standing in their respective market and industry. Hence, you can clearly come to a conclusion that if a stock has stable earnings, it is backed up by a strong management team which is doing something right, to take the company’s growth on a stable note. You can earn rich dividends on your investment portfolio and that is the first and the foremost expectation of all investments. In case of Nepal, there are several blue cheap stocks which have provided generous returns to the investors over long period of time.
Additionally, Reliance is focussed on strengthening its capabilities through key partnerships and acquisitions. These are trusted, household names whose products, services are loved by millions. Pay 20% or “var + elm” whichever is higher as upfront margin of the transaction value to trade in cash market segment. He is an NSE Certified Equity Fundamental Analyst with +7 Years of Experience in Share Market Investing.