The stocks of blue chip companies are priced at high rates because these companies have a well-proven track record of appreciating over time. – As the blue chip companies stocks are comparatively more stable than others, they can in turn ensure greater profits on the investment. These companies tend to grow with time and hence an investor is more likely to profit from staying invested in the long term.
This basket is designed for investors to grow and create wealth with India s biggest and largest brands. Blue Chip stocks are stocks of large cap companies & have a strong brand presence. Bear in mind that investing in stocks comes with a inherent risks. Doing thorough research won’t eliminate them, but it will surely minimise them. And when it comes to investing in stocks, that is what truly matters.
Investing Lessons from Legendary Investors
It is also the largest bank in India by market capitalization and the third-largest company by market capitalization on the Indian stock exchanges. On the other hand, one can choose an index fund for these stocks from the blue chip stocks list. When you invest in index funds, essentially you get exposed to dozens or perhaps hundreds of stocks in a single go. A fall in one of your equities is typically offset by an increase in the other stocks. This helps in mitigating the direct risk of losing your money if the stocks of a company fall. Blue chip equities can be purchased as individual securities or via a blue chip index fund.
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.
A subsidiary of the Swiss-based Nestle, the company’s business is spread across the country with 8 manufacturing and processing units. Hindustan Unilever Ltd. – Hindustan Unilever Limited is the subsidiary of Unilever PLC, which is a British-Dutch multinational company. Hindustan Unilever Limited is India’s largest FMCG with a heritage of over 80 years in India.
Tata Consultancy Services Ltd.
– Blue chip company shares remain high in demand as more and more investors want to leverage the greater level of security they offer. Since they are traded most often they are more liquid in nature. Every investor knows about them or at least has heard about them. Their stocks perform better than others because of them being among the most reputable brands. – Blue chip companies have earned a reputation in the market over time and their stocks usually are able to endure tough periods such as stock market crashes, catastrophes, etc.
- The business owns each store it operates, and does not function on a leasing model, but rather a ‘greenfield’ model.
- Generally, a blue-chip stock is a market leader in its sector or amongst the top three by market capitalization.
- A pioneer in the culinary segment, it offers a range of products under the brand name Maggi.
- Investopaper.com is a financial website which provides news, articles, data and reports related to business, finance and economics.
- 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.
- While small-cap investments held by brokerages are easy to find, one should be capable of finding blue chip shares with some of the big names when it comes to brokerage firms.
Inflation is really on the high rise and its not getting funny. Blue chip companies are low-risk high-return bets for the long term. Asian Paints is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home décor, bath fittings and providing of related services. HUL is one of the largest Fast Moving Consumer Goods Company in India with a heritage of over 80 years.
Suppose you have invested the company like DHFL, Gitanjali Gems etc, then what will happened with your money. Its totally depends on the company when they will pay the dividend and how much they pay the dividend. Blue chip companies are financially very strong companies , they have enough cash flow.
Diversification of investments
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. Our ‘Leaders of Tomorrow’ basket contains top blue chip stocks in India which generated a whopping return of 38.12% in 2020. So, now that you have the list of the best blue chip stocks in India, the critical question is, ‘which blue chip stock will you invest in? He returned to his office after noticing these high trading prices to write about “Blue chip stocks”.
Nestle India Ltd has 8 manufacturing facilities and 4 branch offices in India. In the three-wheeler segment, it is the world’s largest manufacturer https://1investing.in/ and accounts for almost 84% of India’s three-wheeler exports. As an Added security measure to your account we need to verify your account details.
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. Ever thought of investing in giant MNCs like Google, Apple, IBM, Walmart, etc? Let us consider some Indian Business Giants like Bharti Airtel, Tata Consultancy Services, Reliance Industries, ITC, Infosys, etc. 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. Investing in such big names is considered a sound investment. These are well-capitalized, well-established, and have shown traits of growth and profitability for years, earning the trust of many.
These companies have entrenched market operations running for many years. The best blue-chip shares to buy now usually are stocks of the bellwethers and trailblazers, currently occupying the highest ranks of any industry. HPCL has a strong business model, a solid management group, strong earnings growth, and a good dividend payout along with a low P/B ratio. Since July 27, 2000, Hindustan Petroleum Corporation Ltd. has announced 33 dividends. The enterprise also boasts of a sound long-term growth strategy making it one of the best low price blue chip stocks. The Advantage to invest in blue chip stocks is regardless of market condition, blue chip companies pay regular dividends to their shareholders, which is a great ways to earn passive income.
Are blue-chip stocks safe?
No stocks assure the safety of the investment. However, blue-chip stocks are considered relatively less risky as they are the stocks of well-established companies and have fewer chances of going out of business in a recession.
While you are busy with your job or running your business, your portfolio is constantly monitored by us. To invest in StockBasket, Login with your SAMCO Account or Open a SAMCO Account . 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.
Risks would include significant weakening of operating margin due to large gestation losses from new stores, larger than expected debt-funded capex increasing the now comfortable debt to equity ratio. Hindustan Unilever Ltd. is one of the largest Fast Moving Consumer Goods Companies in India with a heritage of over 80 years. Five of its brands generate annual turnover of over Rs. 2,000 Nielsen Global Connect is Shaping a Smarter Market — Nielsen 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.
Advantages of Investing in Blue Chip Stocks India
Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020. WealthDesk helps you make your investment journey rewarding and hassle-free by enabling you to invest in WealthBaskets. WealthBaskets are combinations of equities and ETFs that reflect an investment idea, theme, or strategy and are built and closely monitored by SEBI-registered professionals. Want to maximize your profits, invest in IIFL NCD before its closure date and reap the benefits of the profits. These are trusted, household names whose products, services are loved by millions. The SBI Bluechip Fund is headed by Fund Manager Sohini Andani and its major holdings include stocks of HDFC Bank, ITC, and L&T.
Kotak Bank has maintained its cautious stance towards unsecured retail, credit cards and small business lending. Bank’s 70% advances are given to corporate and business, home loans &LAP and agriculture segment, with corporate and business division having the highest exposure of nearly 58%. In the past five years, the share price has increased by 164%. The share price rising 14% over the previous quarter is also encouraging.
Blue chip stocks are the more reliable and give robust performance. As on Sept 2022 the market cap of Sun Pharma was 2.23 trillion INR. In starting company have started their business by just 5 products from Bihar and West Bengal.
Blue chip equities can be riskier but also tend to perform better than index funds. If there are specific stocks in which you believe there will be significant increases, buying individual shares is a great option. Wipro Ltd. is an Indian IT, consulting, and business process services provider. They use robotics, analytics, the cloud, and other technological advancements to assist its clients, who are spread across six continents, in adjusting to digital trends and thriving toward success. The business also produces and sells furniture, electrical appliances, and healthcare products.
Which are blue chip companies?
A blue-chip company is a multinational firm that has been in operation for a number of years. Think companies like Coca-Cola, Disney, PepsiCo, Walmart, General Electric, IBM, and McDonald's, which are dominant leaders in their respective industries.
The company offers a wide range of services, including consulting, IT support, business solutions, digital transformation, and IT platforms. It had also scavenged via emerging technologies including machine learning, artificial intelligence, cloud computing, and blockchain based technology. This is one of the best high dividend blue chip stocks in India.
The high liquidity of a stock depicts the ease in carrying out trade. The term originally found its way into the investment world through Oliver Gingold who worked at the giant American publishing firm, Dow Jones. 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. For example, we have the Kotak Nifty ETF which holds stocks of companies such as HDFC Bank, Reliance Industries, HDFC, ICICI Bank, and Infosys, which are all Blue Chips. If all of their parameters are to be considered, Blue Chips are the ones with the lowest risk to reward ratio.
The dividend yield in the past 5 years has been averaged around 3.4%, a little below the industry average of 5%. The company’s net debt to equity ratio has fallen precipitously from 1.7x to 1x in the past five years and current interest coverage ratio stands at 2.8x. Despite piling up cash on its books, the company has not been very generous to its shareholders. The dividend yield has been in the range of 0.4%, much lower than the industry average of 1.9%. A global IT player, Wipro has a wide presence across sectors with clients in banking, financial services, healthcare, energy, natural resources, and manufacturing.
Infosys Ltd. – Infosys is a global leader in next-generation digital services and consulting. They serve clients across 46 countries to navigate their digital transformation. The Company is currently being led under the able management of Salil Parekh. Cushions the impact of the recession, inflation, and economic stagnation. There is a perception among investors that blue-chips can survive market challenges of many kinds; while this may be mostly true, it is not a guarantee. Every Indian Pincode has a branch of this biggest bank in the country.