They are especially well suited for retirees and conservative investors looking for low-risk investments. Blue chip shares are also beneficial for new investors because it can be reassuring to put money into a business you are aware of and that you like. Your asset allocation in the portfolio relies on your risk appetite, if you are a conservative investor who does want to take much risk can allocate most of their capital into blue chip stocks. If you have tried a game of poker, you would know that the blue chips represent the highest dollar value in the game as compared to the white and red poker chips. Oliver Gingold, an employee of Dow Jones, gave businesses the phrase ‘Blue Chip’ in 1923. Thus, this term has been included in the stock markets and is an attribute to well-established and well-performing companies.
We have received your acceptance to do payin of shares on your behalf in case there is net sell obligation. On Redemption of Demat units, funds will always be credited in ledger account held with Reliance Securities. Your first installment will be deducted from ledger & subsequent from the bank. Every Sunday we email people like you with top tips, insights and opportunities to manage your finances and build your online business. In the table given below, you can find all the stocks mentioned above and compare them easily in different categories.
- Apart from the cigarette industry, few other well-known businesses of ITC are Aashirvaad, Mint-o, gum-o, B natural, Sunfeast, Candyman, Bingo!
- The business has continued to pay off its debt, which has contributed to some of the best earnings in Tata Steel’s history.
- However, it is well-positioned to grow organically as a result of the enormous untapped market that lies in front of them.
- These stocks will help your portfolio to overcome from market volatility.
Nestle a big brand in India makes many products like Maggi, Nescafe, etc. There was a big blow to Nestle a few years ago when the entire stock of Maggi had to be returned because of testing issues. There was a slight variation in the stock value, but Nestle being a big brand, overcame this blow and was back in the market standing strong. On the other hand, let us consider newbies like Facebook or Twitter. They are undoubtedly famous but still don't come in the category of 'Blue Chip Companies'. Additionally, they must realize the need to prioritize their financial goals, income and risk appetite before investing in any investment option.
Fast-moving consumer goods , agri-business, hotels and hospitality, paperboards & packaging, and information technology are among its five business segments. Hindustan Unilever Ltd., is one of the biggest and most successful consumer goods corporations, with a history in India spanning more than 80 years. HUL offers a wide range of goods, including groceries, household cleaners, cosmetics, beverages, and water purifiers.
The story behind the term “Blue Chip Stocks”
If you are still confused about investing in them then check out some pros and cons of these stocks. One can use the profits as a source of source income or can reinvest these funds to buy more shares. It’s a chance to profit from the stock market while boosting a company you enjoy and wish to succeed. EdgeVerve Systems, Infosys Consulting, and Infosys BPM are the three divisions that make up Infosys. The company has a solid 27.49% ROE track record making it one of the best high dividend blue chip stocks in India. In case you have a limited budget and you can’t invest a high amount then don’t worry, there are blue chip stocks for you as well.
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.
Some of them are dividend aristocrats, i.e. consistently paid increasing dividends for over 25 years. For investors depending on or wanting regular income from stock investments, such blue-chip stocks may be suitable. Blue-chip companies have usually been in business for a long time and have proved their potential to survive a financial crunch in a market. Plus, you may be able to access their stock price and market share data and compare their performance over the long run. Some big companies might also release case studies that help you better understand the industries they belong to.
A large private lender in the country, Axis Bank has also been a favourite among retail and institutional borrowers with a well-spread network of over 4,500 branches. The company recently absorbed Citibank's retail portfolio, giving a boost to its business. A stable debt-to-equity ratio with a sustainable return on equity , interest coverage ratio and superior cash flows. Asset/Liability Management Definition Because of their brand reputation and creditworthiness, blue-chip stocks usually have high demands, which makes it easy for investors to buy and sell them quickly. Some blue-chip dividend stocks include Hero MotoCorp, Britannia Industries, Shree Cement, etc. Few blue-chip stocks also offer high dividend yield, i.e. good dividends as a percentage of their market price.
What Qualifies a Company as a Blue Chip?
The company has ample liquidity which is indicated by cash and cash equivalents balance of Rs. 3,846Crs as on March 31, 2021. HUL is known for its aggressive dividend payout policy which is around 90%. However, HUL’s strong financial risk profile and its leading position in the domestic FMCG industry would help to maintain its leadership position and tide through any economic slowdown/ crisis. These companies are financially resilient with negligible to zero debt levels and are capable of surviving turbulent economic situations. Most of the best blue-chip stocks to buy are market leaders in their respective industries.. Further, it is often seen that a Blue Chip business is less affected by unfavorable financial conditions during recessionary periods.
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.
Therefore, an investor’s portion should always be allocated to blue chips in order to cushion their portfolio during difficult times. \HDFC’s outstanding loan portfolio stood at Rs. 5,68,363Crsas on March 31, 2022 and the outstanding individual loans stood at Rs. 28,455 Crsduring the year. During the financial year 2022, 78% of individual loans disbursedin value termswere from the salaried category, whereas the remaining 22%were from the self-employed category. This NBFC continues to maintain healthy capitalization levels supported by its strong capital raising ability with Capital Adequacy Ratio of 22.8% with Tier-I CAR being 22.2%as on March 31, 2022.
BCCI ends the gender pay gap – Equal...
Growth stocks are of those companies which plough back their profits into the business, instead of paying dividends to equity shareholders. Such companies have been around for some time but are not as well-established as Blue Chip companies. They straddle the middle ground in a market and can easily be identified by their other name — mid-caps. Return on equity – Returns earned by the stocks’ equity investors are more stable than returns from other companies. HDFC Bank provides a number of products and services which include Wholesale banking, Retail banking, Treasury, Auto Loans, Two Wheeler Loans, Personal Loans, Loan Against Property and Credit Cards.
HDFC Bank Limited is an Indian banking and financial services company which headquartered is in Mumbai. The company have diversified businesses in different sectors across India like energy, petrochemicals, retail, telecommunications, textiles and natural resources. Blue chip companies are generally large cap companies; they are financially very strong companies. These tocks facilitate the construction of a sound investment corpus.
Best Blue Chip Companies in India that You Should Know!
The company has delivered strong financial performance, the stock carries premium valuations vs. its peers at a PE ratio of 032.1 times vs. industry average PE ratio of 26.3times. While the PE ratio is higher, the premium is justified as TCS has also delivered industry leading growth and returns for shareholders, making it attractive at the price offered. Digital transformation deals are no longer discretionary as clients continue to spend, despite their sector being in economic down-cycle.
Stock market because of their better performing quality stocks. You can often find the term Blue Chip companies commonly thrown in conversations among investors. It wouldn’t be an exaggeration when we say, investors would literally “kill” for an opportunity to invest in these companies. There are mutual funds that track Blue Chip stocks such as SBI Bluechip Fund, Axis Bluechip Fund, and Mirae Asset Emerging Bluechip Fund. If sold later, then the LTCG ( Long-term Capital Gain) tax of 10 percent is levied. Here you can find the list of Blue Chip Stocks in India which has a market value of more than ₹ 10,000 Cr.
In India under Nifty 50 index mostly listed companies are bluechip companies – like Reliance Ind, TCS, Infosys, Tata motors, HDFC Bank, Bharti Airtel, Sun Pharma etc. As on 29 sept 2022 , share price of Sun Pharma share was trading around 931 INR. Infosys mainly operates in software development, maintenance, and independent validation services to companies in finance, insurance etc. 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.
How to invest in top blue chip stocks?
With over 35 brands ranging from soaps, detergents, shampoos, skincare, toothpaste, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers. Coal India Ltd. - Coal India Limited is a government-owned coal mining and refining company headquartered in Kolkata. It is the largest coal-producing Company in the world and a Maharatna Public sector undertaking.
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. In India, penny stocks are those which are of some https://1investing.in/ of the lowest value, not just in terms of their price but also in their fundamentals. Low market capitalization and sketchy dealings are other characteristics of these low-on-accountability companies.
Why is it called blue chip company?
Origin. As befits the sometimes high-risk nature of stock picking, the term 'blue chip' derives from the card game poker. The simplest sets of poker chips include white, red, and blue chips, with American tradition dictating that the blues are highest in value.
Keep reading to know about the best blue chip stocks and their lists made on various factors. The best blue chip shares in Nepal is listed below based on different sectors of the economy. Read all the documents or product details carefully before investing. WealthDesk Platform facilitates offering of WealthBaskets by SEBI registered entities, termed as "WealthBasket Managers" on this platform.
On 18 October 2007, Reliance Industries became the first Indian company to reach $100 billion in market capitalization. It is also the highest income taxpayer company in the private sector in India. As of July 2022, RELIANCE Industries is the biggest company in India with a marketcap of Rs. 16,19,000 crores. Any investor would want to stake a business that has demonstrated profitability over multiple generations. They may not be among the set of buzzing stocks all the time, however; over the long term, blue-chip stocks tend to make money for the shareholders.