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The blue-chip stocks to buy are stocks that are issued by financially sound and fundamentally strong blue-chip with humongous market capitalisation and enviable market reputation. Blue Chip companies are equity shares of companies with larger market capitalisation. The best blue-chip shares to buy now usually are stocks of the bellwethers and trailblazers, currently occupying the highest ranks of any industry. Similar to the game, these stocks are more valuable in the market and hence are termed Blue Chip stocks.
1. Reliance Industries Ltd
Reliance Industries is India’s largest company. Their business of oil exploration, refining of petroleum and marketing & distribution of the same along with operations in petrochemicals is primarily engaged. This company has diversified further by foraying into the retail, telecom and technology space with Reliance Retail and Reliance Jio, respectively. Reliance had pulled in revenues of over 6 trillion in FY20. Their majority of cash flows from the business of oil but has been proactive towards diversifying into business which might help the company achieve high growth and leverage its scale in the right order while allaying the risks associated with the business of oil on the company. This company delivered an ROE at 10.6% for FY20 though they had pressure on oil companies globally affecting their margins. It also sold a stake in Reliance Retail while raising an additional sum of Rs 47,265 crores.
2. Tata Consultancy Ltd
Tata Consultancy Services Ltd is the largest IT company in India according to Market Cap and the world’s largest IT Services provider. The company provides a wide spectrum of services such as IT Services, Consultancy, business solutions, digital transformation and IT products and platforms. It has a proven track record which is reflected in the company’s financials as it has been delivering industry-leading results such as a 5-year average RoE of about 38.12% which is an operating profit margin of about 26.8% and a high cash flow generating business with FCF at about rs 18,752 crores. This company has also delivered strong financial performance while the stock carries premium valuations vs it speers a PE ratio at 35.2 times vs industry average PE ratio of 32.9 times.
3. Hindustan Unilever Ltd
Hindustan Unilever Ltd (HUL) is one of the largest fast-moving consumer goods companies in India with a heritage of over 80 years. This company’s five brands generate an annual turnover of over Rs 2,000 crores each and seven brands generate an annual turnover of over Rs 1,000 crores each. It caters to a variety of product range which includes foods, beverages, cleaning agents, personal care products and water purifiers. HUL has ample liquidity which is indicated by cash and bank balance of Rs 3,974 crores as of September 30, 2020. The company is known for its aggressive dividend payout policy which is approx 75-83%.
4. Infosys Ltd
This company is the leading provider of consulting, technology, outsourcing and next-generation digital services which enables clients to execute strategies for their digital transformation. Infosys strategic objective is to build a sustainable organization that remains relevant to the agenda of clients while creating growth opportunities for employees and generating profitable returns for investors. The total combined turnover of the last traded share price of Infosys Ltd was Rs 685.23 crores.
5. Housing Development Finance Corporation (HDFC) Ltd
It is an Indian financial services company based in Mumbai, India. The company has a presence in banking, life and general insurance, asset management, venture capital, reality, education, deposits, and education loans. HDFC’s total combined turnover of the last traded share price was Rs 676.38 crores. The stock price of HDFC Ltd is up by 1% over the last month.
6. Bharti Airtel Ltd
Bharti Airtel Ltd is one of the World’s leading providers of telecommunications services with a presence in 18 countries representing India, Sri Lanka, 14 countries in Africa. Its total combined turnover of the last trade share price was Rs 557.32 crores. The stock price of Bharti Airtel Ltd is down by -3% over the last month and -5% by last year.
7. ITC Ltd
This company was established in 1910. ITC is the largest cigarette manufacturer and seller in the country. It operates in five major businesses segments those are; FMCG Cigarettes, FMCG others, Hotels, Paperboards, Paper and Packaging and Agri Businesses. ITC’s total combined turnover was Rs 582.90 crores. the stock price of ITC is up by 5% over the last month and 8% up by the last year.
8. Asian Paints Ltd
This company was set up in 1942. The Asian Paints group is the largest paint manufacturer in India also engaged in the business of manufacturing varnishes, enamels or lacquers, surfacing preparation, organic composite solvents and thinners. It operates in 15 countries and has 26 paint manufacturing facilities in the world serving consumers in over 60 countries. Asian Paints’ total combined turnover of the last trade share price was Rs 224.96 crores. Their stock price is up by 13% over the last month and 755 up by the last year.
9. Nestle India Ltd
It is an Indian-based company engaged in the food business. the company operates only in the food segments. the total combined turnover of the last trade share price of this company was Rs 98.48 crores. Their stock price is up by 7% since last month and down by -0% since the last year.
10. HCL Technologies Ltd
This company is a leading global IT services company currently ranked amongst the top five IT services companies in terms of revenues. HCL offers an integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO. It has a network of offices in 46 countries to provide multi-service delivery in key industry verticals. HUCl’s total combined turned over of the last trade share price was Rs 399.88 crores. Their stock is up by 4% since last month and 74% up since the last year.