Blue chip stocks to buy in india

B lue chip stock is qualified as a high-quality and usually high-priced stock. It has high price because of public confidence in company's long record of steady earnings. Blue chip company is very strong financially, with a solid track record of producing earnings and only a moderate amount of debt.

It also has a strong name in its industry with dominant products or services. Typically, these companies are large corporations that have been in business for many years and are considered to be very stable. Most of the people in the stock market for the long term need to make sure that they always possess few blue chip stocks in their portfolio. So before you venture into small and mid-cap category have few of blue chip companies in your portfolio so as to have stability in your portfolio for the long run.

Click NEXT for more. I don't have any position in stocks mentioned above but we may have recommended some of stocks to our clients time to time. This article is for information purpose only. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons.

Opinions expressed herein are subject to change without notice. B lue chip stocks are those stocks which have been known to be the stocks that have following characteristics:. Click NEXT for an analyses of these 10 stocks which can help you accumulate wealth over a long term:.

Best Blue Chip Stocks India To Buy And

T ata Consultancy Services Limited TCS is an Indian IT services, business solutions and outsourcing company headquartered in Mumbai, India. It is the largest provider of information technology in Asia and second largest provider of business process outsourcing services in India. TCS, a Tata group company 74 per cent shareholding is the largest software services exporter from India.

It is a global technology services company that provides end-to-end business solutions to its clients.

TCS offers a consulting-led, integrated portfolio of IT and IT-enabled services delivered through a Global Network Delivery Model, recognised as the benchmark of excellence in software development. Along with its subsidiaries, TCS operates in 55 countries with over 1,60, employees. TCS has performed robustly in all its parameters over the last six years.

Its impressive fundamentals in the past form a strong base for its future. TCS has registered an impressive 5 year Net Sales CAGR of Also, the company has managed to clock a consistent growth in profits, registering a robust 5 year EPS CAGR of TCS has a great past and with its last few quarters performance, it has proved that it has the ability to be a winner, even in tough times. TCS is India's largest IT company and one of the strongest brands. In the recent past it has outperformed its peers in terms of registering great financial performance.

B harti Airtel is a leading Indian telecommunication service provider with It has more than It has three strategic business units namely Mobile Services, Telemedia Services and Enterprise Data Services. The company provides services to all 23 telecom circles of India. Bharti's mobile network covers approximately 81 per cent of the country's population. Bharti Airtel has been the leader in market share on subscriber base as well as on turnover basis.

Also, it generates the maximum Average Revenue Per User. I TC is the market leader in the Indian tobacco space, as its foray into FMCG, particularly foods and cigarettes. The company has been able to build strong positions in completely new businesses such as soaps, packaged staples and snacks over the past few years.

This adds another strong leg to the medium-term growth prospects for ITC. Dominant player in tobacco space: ITC is by far the biggest player in cigarette market with a strong -- 70 per cent market share is more than 5x the size of its nearest competitors. ITC has significantly invested in expending its food business portfolio and the related supply chain which helped the company to create strong backbone.

The company is expected to deliver strong earnings growth in medium term considering packaged and processed food as the next growth driver.

Agri business -- Benefits from continued mix change: The company's conscious decision to focus on higher profitability products and move away from lower-margin products like sesame, rice, pulses, etc. Leaf tobacco is at present 50 per cent of category sales -- with soya, coffee and wheat accounting for the rest. C oal India is the largest producer and reserve holder of coal in the world with raw coal production of million tonnes MT.

CIL operates mines across 21 coalfields this includes open-cast mines, underground mines and 35 mixed mines. The company produces coking and non-coking coal and also undertakes beneficiation of raw coal. CIL transports approximately 47 per cent of sales volume through railways. Hence, availability of rake is of key importance. Historically, CIL has been facing a lot of issues on availability of rakes, which has led to lower offtake and higher inventory at the pit head. In FY11, during the first half of the year availability of rakes was slightly lower approximately rakes per day [rpd] , whereas the full year average was approximately rpd.

Rakes availability has improved in April to approximately rpd from approximately rpd in April For May and June rakes availability has improved to approximately rpd and approximately rpd, respectively, from approximately rpd each in May and June CIL plans to add 20 new coal washeries of which 15 would be non-coking coal and five would be coking coal with a capacity of MT.

Is It Safe To Invest Only In Blue Chip Companies' Stocks?

It currently has 17 coal washeries with a capacity of Washed coal commands higher realisation compared to raw coal. Hence, going forward, higher realisation due to higher sales from washed coal will lead to strong growth in revenues of CIL. A major cost to CIL is wage cost, which accounts for approximately 47 per cent of the total cost FY The national wage agreement IX is due in July , which will subsequently lead to higher wage cost.

However, CIL has been proactive and has undertaken a price hike in February increase of approximately 12 per cent in blended realisations as compared to Q3FY Hence, we expect CIL's EBITDA margin to remain intact at approximately 22 per cent. Currently, as per Planning Commission estimates, the coal deficit in India in FY12 is expected at approximately MT, indicating huge demand for coal. With the ramp up in production and liquidation of inventory, the revenues and profitability of CIL are slated to post healthy growth, going forward.

H DFC Bank was incorporated in August , and, currently has a nationwide network of 2, branches and 5, ATMs in Indian towns and cities. HDFC Bank is among the top banks in the private sector domain. It has a very strong franchise. That has led to a huge amount of operational efficiencies for the bank over the years. It has got the strongest asset quality, good coverage ratios.

The bank has aggressively looked into rural areas and tier-V and tier-VI cities. And that would lead to almost 30 per cent plus compound annual growth rate CAGR in revenues for the bank in the next two-three years. It has positive net interest margins NIMs of almost 4. Going forward bank would be able to maintain that for the next two-three years easily. Given the kind of good asset quality, traction of business, reduced credit cost going forward, HDFC Bank is a definite good long term buy.

T ata Motors, a leading player in the global and domestic auto industry, benefited from a sharp improvement in the performance of its Europe-based marquee brands Jaguar and Land Rover JLR during FY Apart from strong vehicle sales growth, especially in China and Russia, the company's cost-saving measures in Europe also paid off.

As a result, the company's JLR operations reported a segment profit of Rs 7, crore for FY11, a rise of more than times from a year earlier, while revenues in this segment grew by Total JLR sales grew 25 per cent y-o-y to 2. Tata Motors has also improved its ranking in the latest Fortune Global list to , from last year's rank of Tata Motors will shortly launch the SUV Evoque in Europe. Consumer interest for this model is understood to be strong. This should help the company to deal with the fallout of the European debt crisis.

In addition, there are fears of a slowdown in the fast-growing BRIC countries. This has cast a shadow on its growth momentum in the short term. In the domestic market, auto finance rates are on the rise and there are signs of a slowdown in the broader auto sector.

Tata Motors' consolidated vehicles sales including JLR grew 11 per cent y-o-y in the first two months of this fiscal. Tata Motors is understood to have received strong consumer interest for its SUV Evoque, which will be launched soon. This should drive growth in Europe in the short term.

In its domestic operations, however, rising auto finance rates remain a key cause for concern. Also, while commodity prices have shown signs of easing, they still remain at elevated levels. The company has also approached the judiciary with regard to its dispute with the West Bengal government for its Singur land. C ipla has a product range comprising antibiotics, anti-bacterials, anti-asthmatics, anthelmintics, anti-ulcerants, oncology, corticosteroids, nutritional supplements and cardiovascular drugs.

It is into anti-bacterial and anti-asthmatic segments and is the first player in Asia to launch non-CFC metered dose inhaler. DPCO coverage of Cipla is around 40 per cent. Exports grew by 30 per cent, exceeding Rs l0, million. Both active pharmaceutical ingredients APIs and formulations contributed to the growth in business in the international market. Overseas business forms 45 percent of the company's total turnover.

The company has its manufacturing facilities at Goa, Kurkumbh, Bangalore, Patalganga and Baddi. Cipla has been among the major suppliers of anti-malarial drugs and drugs for neglected diseases such as schistosomiasis to international markets. With the launch of Lamivudine, the company has become one of the few companies in the world to offer all three component drugs of retroviral combination therapy sidovudine and stavudine already launched.

Development of agrotechnology, genetics and biotechnology for cultivation of medicinal plants and isolation of active ingredients from plant materials is also foreseen. It is one of India's leading engineering and construction company.

Let's see what is its business and how it operates:. Also, it has improved its margins over the years from a stagnant average of 10 to 11 per cent from FY 03 to FY 06 to 15 per cent in the last 4 years.

In fact in the company's operating margin has increased to 19 per cent. It's sales have registered a CAGR of Over the past 5 years the CAGR of order inflows has been 33 per cent.

Blue Chip Companies in India - ywegyrayeku.web.fc2.com

This has helped the company register an impressive The company has been witnessing an increase in order inflows since the past few months. Order inflow for the quarter ended June was Rs crore, up 63 per cent on y-o-y basis.

The company expects increased bidding activities in the next few months and expect this momentum to continue.

India blue chips | Blue Chip Companies

As of June the company has a healthy order book of Rs 1,00, crore to be completed over the next 2 to 3 years. Recently, the company bagged 2 projects worth Rs. Hence, this is expected to ensure good revenue growth in the coming quarters.

But it needs to work on a plan to manage its operating inefficiencies. N TPC Limited, a maharatna status company, is the largest state-owned power generation company in India.

NTPC is primarily in the business of generation and sale of bulk power and is engaged in the engineering, construction and operation of power generation plants. The total generation capacity of NTPC is 34, MW with 15 coal-based and 7 gas-based stations, located across the country.

The company is emerging as a diversified power major with presence in the entire value chain of the power generation business. Apart from power generation, NTPC has already ventured into consultancy, power trading, ash utilisation and coal mining. The performance of the company over the past 10 years has not been very impressive. The company has registered good growth rates in its net sales from FY05, but the same has not been reflected in the EPS growth rate, primarily because of high tax payments.

Over the past 5 years, sales of NTPC has grown at a CAGR of In FY, the low growth in EPS was because of high expenditure incurred for buying fuel Coal. The BVPS of the company has grown at a CAGR of 8. Though NTPC has managed a good six-year ROI return on investment average of The debt-to-net profit ratio for FY11 is 4.

The debt-to-net profit ratio is expected to remain high considering the company's plans of expanding its capacity to 75, MW more than double of current capacity by Robust capacity addition plans, growth from a well-diversified fuel-mix and the long-term demand for power are expected to augur well for NTPCs long-term prospects.

H indalco Industries Ltd. It is also one of the biggest producers of primary aluminium in Asia. The company has captive bauxite mines, that source around 70 per cent of its requirements for its 1. The company also produces copper and its copper smelting capacity is the largest in Asia. Hindalco's products include standard and speciality grade aluminas and hydrates, aluminium ingots, billets, wire rods, flat rolled products, extrusions, foil, alloy wheels copper cathodes, continuous cast copper rods along with other by-products, including gold, silver and DAP Di Ammonium Phosphate fertilisers.

On a consolidated basis, Hindalco is a global player operating through its global subsidiary Novelis global leader in aluminium rolled products and aluminum beverage can recycling which has 32 plants in 11 countries. Hindalco has been performing well since the last four quarters on standalone as well as on consolidated basis. It has reported good growth in net sales and profits in the last 4 quarters as a result of better price realisation and rising demand in domestic markets. Also, on a consolidated basis, Novelis recently witnessed a turnaround and has significantly contributed to the rapid growth of Hindalco in FY Novelis continues to enjoy pricing power in the developed markets due to recovery in demand and has been able to increase product prices continuously this year.

However, the rise in sales realisation has not been fully converted in net profit mainly because of higher coal a key raw material prices. A slight dampener to the company's copper business was planned shutdown of 3 weeks in one of its smelters. With the buoyant demand from domestic and global market, we can expect the growth to continue in coming quarters as well. Hindalco is the industry leader with a strong global and domestic presence in aluminum and copper segments and is one of the world's largest aluminium rolling companies.

To strengthen its position further, the company is planning to enhance its refining capacity from 1. The demand for aluminium and copper is expected to grow rapidly in the coming years.

Hindalco is the largest player in the above segments and with its expansion plans it is likely to benefit the most from the rise in demand for aluminum and copper. A xis Bank, formerly UTI Bank, is India's third largest private-sector bank after the significantly larger ICICI Bank and HDFC Bank. It has the largest EDC Electronic Data Capturing network, the third largest ATM network and the fourth largest base of debit cards in India. As of December 31, it had a very wide network of more than 1, branches including service branches and over 5, ATMs.

With a customer base of over lakh 15 million , it also has overseas branches at Singapore, Hong Kong and Dubai and representative offices at Shanghai and Dubai.

Since its inception, Axis Bank has been jointly promoted by UTI-I, LIC, GIC and four other PSU insurance companies, that is, National Insurance Company Ltd. The economy is expected to grow roughly by per cent in the next five years. The banking sector is poised to grow in line with the growth of the economy. Considering its large size and its strengths, we can expect this economic growth to have a positive impact on Axis Bank's growth.

ZaraBol - Trending Topics. NewsApp Free Read news as it happens Available on. Click NEXT for more Courtesy: B lue chip stocks are those stocks which have been known to be the stocks that have following characteristics: Leaders in their individual industry segments Large capitalisation Stability of earnings Sustained growth Regular dividend payouts Good governance model Widely held Some of the blue chips which can be considered by retail investors are as follows: Tata Consultancy Services T ata Consultancy Services Limited TCS is an Indian IT services, business solutions and outsourcing company headquartered in Mumbai, India.

Bharti Airtel Limited B harti Airtel is a leading Indian telecommunication service provider with Bharti vs the telecom industry: Outperformed the industry's net profit margin in the last 3 years.

It is well-poised for growth in the long term due to the growing telecom market, the competitive advantage of its leadership position and opportunities available in the 3G space.

Competition is giving it a bumpy ride right now, but it is well-armed to fight and remain successful. ITC I TC is the market leader in the Indian tobacco space, as its foray into FMCG, particularly foods and cigarettes.

In spite of high valuations, ITC seems a good long term pick. Coal India C oal India is the largest producer and reserve holder of coal in the world with raw coal production of million tonnes MT. HDFC Bank H DFC Bank was incorporated in August , and, currently has a nationwide network of 2, branches and 5, ATMs in Indian towns and cities.

Tata Motors T ata Motors, a leading player in the global and domestic auto industry, benefited from a sharp improvement in the performance of its Europe-based marquee brands Jaguar and Land Rover JLR during FY Investors could consider Tata Motors as an investment on a long-term basis. Cipla C ipla has a product range comprising antibiotics, anti-bacterials, anti-asthmatics, anthelmintics, anti-ulcerants, oncology, corticosteroids, nutritional supplements and cardiovascular drugs.

Considering strong growth prospects, Cipla can be considered for investment on long term basis. Let's see what is its business and how it operates: Its business operations are categorised in three segments, as given below: NTPC N TPC Limited, a maharatna status company, is the largest state-owned power generation company in India.

In , NTPC stood st in the 'Forbes Global ' ranking for the world's biggest companies. Hindalco Industries Ltd H indalco Industries Ltd. Axis Bank A xis Bank, formerly UTI Bank, is India's third largest private-sector bank after the significantly larger ICICI Bank and HDFC Bank.

It is India's third largest private bank, with 1, branches and 5, ATMs, and a customer base of over lakh as on Dec 31, It has the largest EDC network, the third largest ATM network, and the fourth largest base of debit cards in India. It already has branches in Singapore, Hong Kong and Dubai International Financial Centre. About 14 per cent of the bank's asset book is from international operations.

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