Blue Chip Stocks

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Blue chip stocks in India are most stables stocks for investing. Therefore those have long history of stable earnings and dividends. Because of their large size there is no potential for high growth rate. So most of return of these stocks is in form of dividends. However, capital gains can be earned from these stocks. If they are bought in bear market when stock prices are depressed overall. See list of blue chip companies in Indian stock market.

History of Blue Chip Stocks

However, blue chip stocks are best for long term returns. And fundamentals of blue chip companies are very strong. Therefore Blue chip stock companies can make profits even in bad times. Hence, experts give special attention to these stocks. But blue chip stocks also display excellent dividend payment history.

Therefore, company can distribute dividends even in bad times. And it show how confident they are about their cash inflows. But such assured cash inflow happens only when company is enjoying strong competitive advantage. Probably, blue chip stocks are like by all investors.  See list of blue chip stocks helps to reduce this risk.

Similarly, expert investors likes steady returns and low price volatility in stocks. Moreover, blue chip companies is fulfilled your requirement. Probably, value investors do not buy blue chip stocks always. In addition, on trading days blue chip stocks trade at exorbitant price levels. Check best blue chip stock to buy now.

Therefore this is why value investors trace its price movement closely. Hence, blue chip companies are buying at undervalued price levels and it ensures very good returns.  View best blue chip stocks for long term.

Investing in blue chip companies

However, before you invest in any blue chip company. You must read and analyse all information available about company history. Moreover, nowadays see reality and outlook for future. Because, no one knows what going to happen in next few months. And every year growing stock doesn’t have to follow its twenty years history. Blue chip investment is almost opposite of penny stock investment.

How to identify these Blue Chip Stocks for medium to long term investment

Blue chip stocks are those which has continuous growth along with stable return. Therefore these blue chip stocks create wealth over period of time. Hence, for better understand check blue chip investment. You can see best blue chip companies. Check top 20 blue chip companies in India.

In last 5 year annual earnings growth: you can filter companies which are contueous growth in earning. Therefore best way to identify good stock is more than 20 % growth of annual revenue is considered. Hence, see examples of blue chip stocks. And also see top 10 blue chip stocks.

Debt- Equity Ratio: However, this ratio of company financial leverage is calculated by dividing total liabilities by shareholders equity. Because, it means for every Rs 1 of investment by shareholder must not be more than 2 Rs of liabilities. Moreover, when ratio is low you have greater chances to manage funds to company within own sources.

Interest coverage ratio: Interest coverage ratio is used to determine. How easily company can pay interest on outstanding debt. Therefore if any company where interest coverage ratio is lower than 2. So such company performance is questionable. In addition, such companies struggle to make interest payment from profits. And such profit was decline year on year.

Interest coverage ratio = CBIT / interest expenses

Market capitalization: Market capitalization is total value of company outstanding shares. And it is simple arithmetic of outstanding shares issue by company at market value. Moreover, any company market cap of Rs 3000 crores can be consider as blue chip stock. Hence, higher market cap is higher the confidence in such company.

Price to earnings growth (PEG): PEG is key ratio that is used to determine time. It must take for an investor to double money with such stock investment.And also read Top midcap stocks that can double or triple your money. To understand see difference between market capitalization and the value of the company itself.

Blue Chip stocks are High Dividend yield companies

However, blue chip companies are preferred because they offer high dividend yield. Moreover, several companies are well known for their blue chip are offer dividend yield 5% high. Because, investing in Blue chips stocks has dual advantage of giving you benefit of high dividend yield and also capital appreciation.

Similarly, on parameter basis see all stocks that are listed in BSE. List of Blue chip companies in BSE exchange shared below. Moreover, these companies are listed priority. However, read recent annual and quarterly reports of the company.

  • Adani Ports and Special Economic Zone LTD
  • Asian Paints LTD
  • Axis Bank LTD
  • Bajaj Auto LTD
  • Bharti Airtel LTD
  • Cipla LTD
  • Coal India LTD
  • Dr. Reddys Laboratories LTD
  • HDFC Bank LTD
  • Hero MotoCorp LTD
  • Hindustan Unilever LTD
  • Housing Development Finance Corporation LTD
  • ICICI Bank LTD
  • Infosys LTD
  • ITC LTD
  • Kotak Mahindra Bank LTD
  • Larsen & Toubro LTD
  • Lupin LTD
  • Mahindra & Mahindra LTD
  • Maruti Suzuki India LTD
  • NTPC LTD
  • Oil & Natural Gas Corporation LTD
  • Power Grid Corporation Of India LTD
  • Reliance Industries LTD
  • State Bank Of India
  • Sun Pharmaceutical Industries LTD
  • Tata Consultancy Services LTD
  • Tata Motors – DVR Ordinary
  • Tata Motors LTD
  • Tata Steel LTD
  • Wipro LTD

However, see benefits of investing in Blue chip stocks. See Blue chip Stocks list in NSE exchange with sector find below. Check advantages and disadvantages in blue chip stocks. Hence, read all possible analyst reports and make your judgment.

  • ABB India LTD
  • ACC LTD
  • Adani Ports and Special Economic Zone LTD
  • Ambuja Cements LTD
  • Ashok Leyland LTD
  • Asian Paints LTD
  • Aurobindo Pharma LTD
  • Axis Bank LTD
  • Bajaj Auto LTD
  • Bajaj Finance LTD
  • Bajaj Finserv LTD
  • Bank Of Baroda
  • Bharat Electronics LTD
  • Bharat Heavy Electricals LTD
  • Bharat Petroleum Corporation LTD
  • Bharti Airtel LTD
  • Bharti Infratel LTD
  • Bosch LTD
  • Britannia Industries LTD
  • Cadila Healthcare LTD
  • Cipla LTD
  • Coal India LTD
  • Colgate-Palmolive (India) LTD
  • Container Corporation Of India LTD
  • Cummins India LTD
  • Dabur India LTD
  • Divis Laboratories LTD
  • DLF LTD
  • Dr. Reddys Laboratories LTD
  • Eicher Motors LTD
  • Emami LTD
  • GAIL (India) LTD
  • Glaxosmithkline Consumer Healthcare LTD
  • Glaxosmithkline Pharmaceuticals LTD
  • Glenmark Pharmaceuticals LTD
  • Godrej Consumer Products LTD
  • Havells India LTD
  • HCL Technologies LTD
  • HDFC Bank LTD
  • Hero MotoCorp LTD
  • Hindalco Industries LTD
  • Hindustan Petroleum Corporation LTD
  • Hindustan Unilever LTD
  • Hindustan Zinc LTD
  • Housing Development Finance Corporation LTD
  • ICICI Bank LTD
  • ICICI Prudential Life Insurance Company LTD
  • Idea Cellular LTD
  • Indiabulls Housing Finance LTD
  • Indian Oil Corporation LTD
  • IndusInd Bank LTD
  • Infosys LTD
  • Interglobe Aviation LTD
  • ITC LTD
  • JSW Steel LTD
  • Kotak Mahindra Bank LTD
  • Larsen & Toubro LTD
  • LIC Housing Finance LTD
  • Lupin LTD
  • Mahindra & Mahindra LTD
  • Marico LTD
  • Maruti Suzuki India LTD
  • Motherson Sumi Systems LTD
  • NHPC LTD
  • NMDC LTD
  • NTPC LTD
  • Oil & Natural Gas Corporation LTD
  • Oil India LTD
  • Oracle Financial Services Software LTD
  • Petronet LNG LTD
  • Pidilite Industries LTD
  • Piramal Enterprises LTD
  • Power Finance Corporation LTD
  • Power Grid Corporation Of India LTD
  • Procter & Gamble Hygiene & Health Care LTD
  • Tech Mahindra LTD
  • Titan Company LTD
  • Torrent Pharmaceuticals LTD
  • Ultratech Cement LTD
  • United Breweries LTD
  • United Spirits LTD
  • UPL LTD
  • Vedanta LTD
  • Wipro LTD
  • Yes Bank LTD
  • Zee Entertainment Enterprises LTD

Finally, blue chip companies best stock available in Market. See list of top 10 blue chip companies in India.  Therefore check blue chip shares list. Hence, view benefits of blue chip stocks. For more details read how does blue chip fund work.

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