Blue Chip India Competition, Blue Chip Comparison with Competitors

The strong financial standing, excellent market valuation and credit worthiness of blue-chip stocks act in favour of their investors and extend multiple benefits to them. These companies are household names that attract all investors irrespective of their experience with the stock markets. Selling by foreign institutional investors propelled by geopolitical tensions, rising inflation, and interest rates, among other factors, are the key reasons behind the added volatility.

blue chip companies list

The same mindset goes for dividend payouts, it is to boost your confidence in the organization which you are investing in so that you keep on investing with the company & maintain your loyalty with them. Besides, dividend payouts benefit the organization as well along with the investors. It helps in reducing the volatility of the stock, increase their share prices & hence increase their net worth, etc. Blue chip companies are reputed and well-established companies that are listed on the Global Stock Exchange.

Debt free blue chip companies

All these are offered and built around Digital, Automation, IoT, Cybersecurity, Cloud, Analytics, Infrastructure Management, and Engineering Services to help enterprises reimagine their businesses for the digital age. They are operating in over 46 countries, with a staff strength of + employed in R & D’s worldwide network, innovation labs, and delivery Annuity Table Definition centers. HCL generated consolidated revenues of USD 9.94 billion for 12 Months Ended 31 March 2020. Blue-chip stocks are a desirable investment option for achieving long-term financial goals. We all know that bluechip stocks are in a league of their own. We also know that they grow at a steady yet slow pace in comparison to small or mid cap companies.

In the decorative paints segment, which comprises about 70-75% of the Indian paints industry; Asian Paints has a share of about 60%. It has also been able to garner a healthy position in the automotive industrial coatings segment with a market share of about 20%. Driven by its leadership position, the company has registered revenue at CAGR of 9% and profit CAGR of 13% over the five fiscals through 2021. Strong brand equity, extensive distribution network, and wide product portfolio has enabled it to maintain a strong market position. Due to the company’s leadership position, it enjoys a healthy operating margin of over16.51% which is higher than peers.

blue chip companies list

The bank’s net profit on a 5-Yr CAGR basis stands at more than 20%., Interestingly, HDFC bank’s net NPAs (non-performing assets) have never crossed 0.5% of loans. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge. Blue chip stocks are slightly expensive but they provide a complete value for your money’s worth. is a financial website which provides news, articles, data and reports related to business, finance and economics. Investopaper is a financial website which provides news, articles, data, and reports related to business, finance and economics.

Why are Blue Chip investments preferred?

In the three-wheeler segment, it is the world’s largest manufacturer and accounts for almost 84% of India’s three-wheeler exports. Blue chip companies have a strong balance sheet and a healthy income statement . As an Added security measure to your account we need to verify your account details.

  • These stock will give you slow and steady growth, but in long term they are very beneficial.
  • Investments in securities market are subject to market risk, read all the related documents carefully before investing.
  • You know, big companies can offer big profits, big dividends, and higher earnings per share, and they become a trusted name.
  • Nevertheless, his investment style is totally different from that of mine.
  • On the other hand, let us consider newbies like Facebook or Twitter.

2020 was a testing time for blue chip companies that miserably failed because of poor capitalization. Let us consider examples like Sun TV Network Ltd, or Godrej Agrovet Ltd, who suffered major losses post-pandemic. However, due to years of decline, they were nowhere near capitalized enough to be blue chip companies. Government bonds are low-risk investment options that are issued by the government of India and monitored by the RBI. Such bonds extend fixed interest to their investors and allow them an opportunity to diversify their investment portfolio. Additionally, government bonds extend tax benefits to investors and offer liquidity.

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It continues to maintain its leadership position in the market through alliances with leading technology partners. It holds significant market share across its business segments and commands a strong brand recall among its customers. Founded by Dhirubhai Ambani, Reliance Industries is a Fortune 500 company and the largest private sector corporation in India. This was done taking into consideration key parameters like growth and profitability to further refine the stock list. But on another note, these can ensure great returns in the longer run for an investor as these companies’ value is more likely to appreciate over time. Investing in the companies can be a great source of regular passive income, however, the returns aren’t as significant as a trader can earn by investing in other options.

How blue chip stocks work?

Blue chip stocks work by providing regular dividend income to their investors along with steady wealth creation. Such blue-chip companies are typically large and well-reputed with market capitalisation values exceeding Rs. 50,000 crores. Blue chip companies are financially sound with strong management.

Blue-chip stocks share large and well-reputed companies with a high market capitalization with a long history of sound financial performance. These stocks are capable of enduring severe market conditions and provide good returns in stable market conditions. However, the shares of these companies are dearer, as they have good credibility and are often market leaders in their respective sectors. These are the key differentiating factors from a normal company. A solid trend which shows that the company is providing timely and consistent dividends to stock holders is treated as an icing on the cake among investors.

Top Blue chip companies in India

HDFC Bank Limited is an Indian banking and financial services company which headquartered is in Mumbai. Depending on their requirement, investors can park their money in fixed deposits for both long-term and short-term. FDs also allow investors to avail of a loan against it in case of an emergency.

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.

The rest may have a diversified spread of mid-cap and small-cap stocks to infuse that right dose of exponential growth prospect. To bypass market risks and inflation, commodities or ETF tracking commodity indices could also be made a part of our portfolios. As with all investment funds, we should avoid duplication of securities. In the Blue Chip funds mentioned above, some of the majorly-held stocks are common.

If sold later, then the LTCG ( Long-term Capital Gain) tax of 10 percent is levied. Direct investment — We may invest in Blue Chip stocks by buying them from the open stock market at market price. In the early 20th century, Blue Chip stocks primarily meant high-priced stocks. If at first, it was the Blue Chip share price determining the status, now it is the inherent value of a Blue Chip share . HCL Technologies Ltd. – HCL Technologies Limited is an Indian multinational information technology service and consulting company headed under the august leadership of Mr. C Vijaykumar. The company offers an integrated portfolio of products, solutions, services, and IP.

You can also figure out the Debt equity ratio from these statements, which should be lower. However, before investing in blue-chip companies,individuals should equip them with a few essential details. The company has a strong presence across the entire steel manufacturing value chain, from raw materials to distribution of steel and other value-added products. It’s well-poised to grow briskly from the government’s spending push on infrastructure. Last on the list is India’s steel manufacturing behemoth and Asia’s first integrated private steel company, Tata Steel.

Five of its brands generate annual turnover of over Rs. 2,000 Crs each and 7 brands generate annual turnover of over Rs. 1,000 Crs each. HUL caters to a variety of product range which includes foods, beverages, cleaning agents, personal care products, and water purifiers. A few famous brands have high visibility and sustained market leadership which is backed by an extensive distribution network and a strong advertising and marketing campaign.

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.

Apart from the characteristics discussed above, an investor must keep a few key financial characteristics of blue chip companies in mind before investing. Most Blue Chip companies in India have market capitalization greater than Rs. 50,000 Crs. These companies have a track record of consistently increasing their topline and operating margins on an upward trajectory. They are generally debt free companies, however, a low and stable debt to equity ratio may also be considered as a significant characteristic. Blue Chip companies are known for rewarding their loyal shareholders with consistent and increasing dividends. Also, these companies should have a high return ratio , high interest coverage ratio, ability to consistently generate cash flows, etc.

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