A blue-chip stock is the share of a well-established company that has consistent growth in revenue and profitability ranging over decades if not years. What’s more, the top blue chip stocks in India are known to be relatively stable across market conditions. We’ve compiled a list of such best blue chip stocks in this blog.
1. Reliance Industries
Reliance Industries is the largest conglomerate in India by market capitalization with a diversified portfolio of businesses in Petrochemicals, Retail, Refining, and Communication. The largest contributor is the Petrochemicals business.
Apart from being one of the most liquid stocks in India, Reliance Industries is known as a top blue chip stock because of its strong financial performance and a long track record of consistently delivering results. Here are the latest details of the RIL stock:
- Share Price: ₹2,335.90
- Market Cap: ₹15,93,720 crores
RIL has given a 137.54% return over the past 5 years and has a current dividend yield of 0.38%.
While these pointers can be considered to be positives, the stock has an average Price-to-Book ratio of 2.23 and Price to Earnings ratio of P/E ratio of 25.00. The following video covers everything about the Reliance stock:
2. Tata Consultancy Services
Tata Consultancy Services (TCS) is a leading subsidiary of the famous Tata Group and is one of the top global IT services and consulting companies. Founded in 1968, TCS has a global presence as it offers IT consulting and IT-enabled services across Asia, North America, and more.
The company has clients in the Retail and Distribution, Telecom, Insurance, Financial Services, and Banking industries. TCS has a well-diversified product portfolio and clients. The details of the stock:
- Share Price ₹3,381.55
- Market Cap: ₹12,83,100 crores
Owning a TCS stock would’ve returned 77.12% in the last 5 years, which is relatively lower than Nifty IT’s growth of 106.13% for the same period.
The P/E ratio of the stock is average at 29.00 but the P/B ratio is decent at 12.75, while dividend yield is 3.28%.
3. Hindustan Unilever
Hindustan Unilever is one of the leading FMCG companies in India. It has famous brands under its name like – Sunsilk, Pepsodant, Lakme, Brookbond, Surf Excel, Wheel, Lifebuoy, and many more.
These are household names across the country and the company has established its stronghold and market share with the help of well-known brands.
Along with its strong portfolio of products the company has a strong distribution network which makes it one of the top blue chip stocks in India. Here are the stock details:
- Share Price: ₹2,519.35
- Market Cap: ₹6,00,896 crores
Over the last 5 years, HUL stock has generated 50.62% returns while the Nifty FMCG index has grown by 77.98%. The stock has a decent dividend yield of 1.53% and a P/B ratio of 11.95 whereas the P/E ratio is above average at 58.00.
4. HDFC Bank
HDFC Bank is one of the leading private sector banks in the country known for its brand value and services. It offers a wide array of services ranging from transactional to commercial banking, banking, and treasury services to retail and wholesale customers.
The company has the leading market share in credit cards, deposit accounts, and others. The combination of brand value and offerings makes it one of the top blue-chip companies in India. Stock details are as follows:
- Share Price: ₹1,604.50+
- Market Cap: ₹8,94,620 crores
HDFC Bank has grown by 57.92% over the last 5 years. For context, Nifty Bank gained 65.34% during the same period. With a decent dividend yield of 1.19% and a solid P/B ratio of 3.09, HDFC Bank has a P/E ratio of 19.00.
5. ICICI Bank
ICICI Bank is the second-largest bank in terms of market capitalization after HDFC Bank. It offers loans, deposits, credit cards, brokerage, and insurance services. The company also has a product portfolio for the NRI segment.
- Share Price: ₹940.70+
- Market Cap: ₹6,54,523.00 crores
ICICI Bank’s stock has grown by 223.01% over the last 5 years compared to Nifty Bank’s growth of 65.34%. The stock has a decent P/B ratio of 3.11 and a dividend yield of 0.85%, whereas the P/E ratio is 19.00.
6. Infosys
Founded by Narayan Murthy, Infosys has emerged to be one of the leading IT services companies in India along with TCS. Infosys serves a large array of clients ranging from banking and financial services, retail, to telecom.
Infosys offers solutions in technology outsourcing and IT consulting. The company has shown a robust financial track record and has played a key role in revolutionizing the IT industry.
- Share Price: ₹1,300.95+
- Market Cap: ₹5,36,122 crores
Infy stock has gained 104.65% in the last 5 years compared to Nifty IT which grew by 106.13%. The stock has an average P/B ratio of 8.20 and a P/E ratio of 22.00 but does give a dividend yield of 2.63%.
7. HDFC
HDFC was established to promote the development of housing and make housing loans affordable. The business involves providing finance to individuals, co-operations, and other entities involved in mainly commercial property projects.
The company has a strong brand name and many businesses with the same brand name.
- Share Price: ₹2,646.95+
- Market Cap: ₹4,87,529 crores
Shares of HDFC gained 44.43% in the last 5 years compared to Nifty Bank’s growth of 65.34%. The stock has a dividend yield of 1.66%, a P/B ratio of 2.42, and a P/E ratio of 19.00.
HDFC and HDFC Bank will be merging soon. Read all about it here: HDFC – HDFC Bank Merger
8. Kotak Mahindra Bank
Kotak Mahindra Bank is involved in personal banking, commercial banking, alternative assets management, asset management, investment banking, and life insurance. The company has a strong foothold in all these segments.
Founded by Uday Kotak, the bank has managed to become a top blue chip stock in India. Details of the stock are as follows:
- Share Price: ₹1,864.95+
- Market Cap: ₹3,73,186 crores
Kotak Mahindra Bank’s stock has seen a growth of 40.22% over the last 5 years, lagging behind Nifty Bank’s growth of 65.34%. While the stock has a relatively low dividend yield of 0.08%, it has a decent Price-to-Book ratio of 3.34 and a P/E ratio of 25.00.
9. Hindustan Zinc
Hindustan Zinc is the leading producer of zinc and lead, which are crucial. The products are used in construction, infrastructure, household appliances, and other industrial uses. Lead is used in ceramic glazes, electrodes, acid batteries, etc.
- Share Price: ₹300.95+
- Market Cap: ₹1,26,337 crores
Hindustan Zinc’s stock has faced some challenges over the past 5 years, with a slight decline of -0.27% compared to Nifty Metal’s growth of 69.92%. The stock compensates investors with an impressive dividend yield of 25.25%, with a Price-to-Book ratio of 9.77 and a reasonable P/E ratio of 12.00.
10. Asian Paints
Asian Paints has compounded investors’ wealth at a higher rate since its existence. The company produces and distributed paints for home and industrial use. In the home segments, the company has the highest market share.
- Share Price: ₹3,250.30
- Market Cap: ₹3,06,315.00 crores
Asian Paints enjoyed substantial growth as the stock has surged by 152.63% over the last 5 years, outperforming Nifty which gained 72.34%. The stock offers a modest dividend yield of 0.80% and the Price-to-Book ratio stands at 19.15 while the P/E ratio is relatively high at 74.00.
11. Bharat Petroleum Corporation
BPCL is one of the well-known petroleum companies in India. The company is into the exploration, retailing, and production of petrol and related products. BPCL also offers products to the aviation sector.
- Share Price: ₹373.75
- Market Cap: ₹80,566.00 crores
12. Larsen & Toubro Ltd.
L&T is into engineering, construction, technology, and manufacturing. The company is more than seven decades old and has earned its reputation in the more in engineering and construction sectors. L&T has a global presence, allowing the company to diversify its client base.
- Share Price: ₹2,351.45
- Market Cap: ₹3,28,820.00 crores
Conclusion
Blue Chip stocks represent some of the most reputed corporations with leaders in the segments they operate in. However, before investing in any stock you must know the business the company is doing and align with your return and risk expectations.
The shares mentioned above in the list of top blue chip stocks are examples, not recommendations. Please do your own research and due diligence before investing.
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FAQs
Q. Is ITC a blue chip?
ITC fits the definition of a blue chip stock and is known for its slow and steady growth over the past few decades.
Q. Is TCS a blue chip stock?
Yes, TCS is a blue chip stock that is known for dividends, steady returns, and a growing book size.
Q. Is Adani blue-chip?
While there are many companies that fall under the bracket of Adani, Adani Enterprises falls under the category of blue chip stocks.
