Best Blue Chip Stocks to Buy in India – List of Top 10 Blue Chip Industry Shares of 2024

If you are thinking of investing in Blue Chip Companies in India, you have landed on the right page.

Here in this article, we will discuss the Best Blue Chip Stocks to buy, and not only that; we will be discussing Blue chip stocks’ features, pros, and cons of investing.

We will also guide you about how to invest in them and select the right Blue chip stock as per your portfolio. So, this article will be an all-in-all guide for those investors looking to invest in Blue chip stocks.

What are Blue Chip Stocks?

Before looking for the Blue Chip Stocks to buy, it is better to understand their backgrounds.

So, Blue chip stocks are shares of those companies with huge market capitalization, years of experience, and enormous goodwill created over the years.

These stocks are known for enduring tough market conditions and provide good returns throughout.

However, these stocks are highly priced as they are already of established companies, but they offer a non-volatile return due to those years of experience and goodwill.

Top Blue Chip Companies in India include big names like Tata, Reliance, Hindustan Unilever, and others. We will be discussing the ten of the Top Blue Chip Companies in India in this article.

Top 10 Blue Chip Companies in India

Check out the Blue Chip Share Price & Ranking of Best Blue-Chip Shares to buy Today or Tomorrow or for Long Term –

The table above briefly mentions the Best Blue Chip Shares in India and their details.

As you can see in the table given above, the Best Blue chip Shares in India include Reliance Industries, TCS or Tata Consultancy Services, HDFC Bank, Infosys, ICICI Bank, and others. We have ranked these stocks as per their market capitalization in the first place.

We have also evaluated the return of the stocks provided over last year and six months. So, if you are looking for Blue chip Shares to Buy, you can use this article as a guide.

However, you need to do your research to understand which Blue chip stocks are the right fit for your investment portfolio.

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Reliance Industries – Best Blue chip Stocks in India

At the first place of Best Blue chip Stocks in India, we have Reliance Industries.

There would be hardly anyone in this country who hasn’t heard of reliance industries. Reliance Industries is the largest private-sector enterprise in the country.

This huge enterprise’s primary or core business includes exploration and production, refining and marketing of petroleum, petrochemicals and related products, textiles, and other business segments.

It has multiple businesses and domains where it operates from energy to materials to others. It is a fortune 500 company as well, which makes it more reliable for investment.

Reliance Industries creates around 50 lakhs of employment (indirectly) within a year. Reliance industries are also into the telecommunication business, JIO, as you may know.

There are many first to this name and many more to come.

Why should you invest in Reliance Industries?

There are ample reasons to buy Reliance Industries stocks, and the most important ones are as follows:

• Amongst the Blue chip companies, it is one of those which has been providing much higher returns over the years. Reliance Industries returned a whopping 23.31% to the stakeholders in the past year. Even if you see the half-yearly return, it is 14.59% which is one of the highest amongst the other Blue chip companies.
• The company has showcased high TTM EPS growth in the past few years.
• Even the quarterly results showcase higher growth in returns.
• Even after being such a huge enterprise, Reliance Industries keeps its debt low. This is an added advantage for the stakeholders.
• The revenue has increased over the past two quarters, which is a positive sign for growth again. Along with revenue, the profits have also been increasing.
• The book value per share of the enterprise has also been improving for the last two years.
• There is Zero promoters pledge in Reliance Industries.
• Reliance Industries Stock predictions say that the stock prices will rise in the next few months.

Check out Best Stocks to Buy from Other Sectors & Industries

TCS – Best Blue Chip Shares to Buy

Tata Consultancy Services needs no introduction in India as this is one of the biggest Information Technology companies in the country or the largest.

It offers different IT-related consulting services. It has provided services across various industries like financial services and banking, insurance, retail and distribution, telecom, and many others.

If you wonder which would be the Best Blue chip Shares to buy, you can blindly trust TCS.

Why should you invest in TCS stocks?

The factors which suggest that TCS stocks can be a good buy for your investment portfolio are –

• The company’s revenue has been increasing for all the past quarters in the past year.
• The profits have also been increasing for the past two quarters, and the annual net profit has been growing over the past two years. This signifies the growth and potential for further growth.
• Another critical factor is that the cash flow from the core business activities has improved over the past two years.
• TCS has no debt, which is a significant advantage for the company’s stakeholders. This enterprise is efficient enough to generate revenue with its capital/ working capital.
• The RoCE has been improving over the past two years as well.
• The return TCS shareholder got in the past year is 20.85%, one of the highest amongst the Blue Chip Stocks in India.

HDFC Bank – Top Blue Chip Stocks

The third Top Blue Chip Stocks is HDFC Bank. The company offers a broad range of banking services, including commercial and transactional.

It also provides treasury products and other financial services to institutional and retail customers.

It also offers foreign exchange and derivatives and equities, and a lot more. HDFC Bank is one of the largest private sector banks in the country.

The services it offers are not restricted to the domestic clientele but also include international clients. Apart from banking products and services, it also offers insurance products.

Why should you invest in HDFC bank stocks?

The reasons for investing in HDFC Banks stocks are listed below:

• An increasing net cash flow, especially from the core business operations, signifies the company is efficient enough to generate revenue from its core business.
• The TTM EPS growth over the last few years also suggests the firm’s potential. It has a TTM EPS of 65.02, which is relatively high.
• The TTM PE is around 22.41, close enough to the sector PE Ratio.
• The company’s net profit has been going up along with the profit margin as per quarter on quarter basis. Not only that, but the quarterly net profit has also been increasing.
• The revenue has been increasing along with the profits for the past two quarters.
• There is Zero Promoter Pledge in the company, which is an added benefit to the stakeholders.
• HDFC Bank has returned 7.48% in the past six months on its shares.

Infosys – Top Blue Chip Companies in India

At the fourth position of Top Blue Chip Companies in India, we have Infosys. Formerly, Infosys Limited was known as Infosys Technologies Limited.

This company offers business consulting, engineering, technology, and outsourcing services.

This is an end-to-end business solution provider which offers consulting, system integration, advanced technologies, enterprise solutions, business information technology services – including application development, maintenance, validation, and a lot more.

The clientele of Infosys includes banks and financial companies in the first place from different parts of the world.

Why should you invest in Infosys Stocks?

This Blue Chip Share Price is worth keeping a note of because of these below-mentioned reasons –

• The company’s cash flow from operating activities has been increasing over the years. This signifies that the business the company offers is in demand and the company management is efficient enough to churn profit out of those businesses.
• There is no debt in the financial structure of the firm.
• For the last four quarters, the revenue has been increasing along with profits increasing for past three quarters.
• The annual net profit has also been improving for the last two years.
• The book value per share has also increased in the last two years.
• There is a Zero promoter pledge in the company.
• Infosys has returned the highest amongst all Blue chip companies in the country. It returned a whopping 38.98% to the shareholders in the past year.
• Infosys Share Forecast suggests that it has very good future potential.

ICICI Bank – Top Blue Chip Stocks in India

ICICI Bank is our fifth pick for Top Blue Chip Stocks in India. It was established in 1994 by ICICI Limited as a fully-owned subsidiary.

At present, ICICI Bank is one of the leading banks in the private banking sector. As per a survey done in 2020, the firm has more than 5000 branches across the country with over 13500 ATMs.

It offers both retail and institutional banking and financial services. From loans to insurance to equities derivatives, this banking institution offers everything under the sun that comes under financial products and services.

Why should you invest in ICICI Stocks?

The reasons for tracking this Blue chip Share Price and buying the shares could be:

• Its strong growth of EPS on an annual basis. At present, the TTM EPS is 33.43.
• The ROE has been increasing, suggesting that the banking institute uses the shareholder’s fund efficiently.
• Even the ROA has been improving, signifying the company’s management is efficient enough to generate profits out of the company’s assets.
• The net profit margin and the net profit have been increasing on a YoY basis.
• The revenue has been increasing for the past year, in every quarter.
• The cash flow that the firm has been generating is mainly from the core business activities.
• Shareholders have got a 30.9% return in the past year from the shares of ICICI Bank.

Hindustan Unilever (HUL) – Top 10 Blue Chip Stocks

Hindustan Unilever is the sixth out of the Top 10 Blue Chip Stocks that we have picked. It is one of the country’s largest fast-moving consumer goods enterprises.

It has a considerable market share in the segments like home and personal care products, food, and beverages. Some of the most common names under HUL are lifebuoy, Rin, Wheel, Sunsilk, Pepsodent, and others.

All these names are so familiar, right and thus it is easy to understand about the company’s businesses. There are many such brands that HUL produces and supplies.

Why should you invest in Hindustan Unilever stocks?

The reasons for investing in this stock are following –

• There is a Zero promoter pledge in this company.
• Annual net profits have been increasing over the past two years. The revenue has also increased every quarter for the past two years. The profit margin is also improving and not only the profit which suggests huge growth in the company.
• There is no debt in this firm.
• The cash flow generated in this company has been primarily coming from the core activities.
• Book value per share has also been increasing for the past two years.
• The company has returned a 3.57% return in the past year.
• Another benefit for the shareholders can be the regular dividend that this company provides. The dividend yield of this firm is over 1. It is one of the High Dividend Blue Chip Stocks in India.

HDFC – Best Blue Chip Stocks to Buy

Housing Development Finance Corporation Limited (HDFC Ltd.) is our pick for the 7th Best Blue Chip Stocks to buy.

The primary service of this company is to provide finance to corporates, retail customers/ individuals, developers, and co-operative societies to purchase, construct, repair, and develop houses, commercial properties, and apartments in India.

It was built to encourage homeownership by providing financial support on a long-term basis to the homeowners.

Why should you invest in HDFC stocks?

The primary reasons for investing in this Blue Chip Share in India can be the following:

• The company has been providing positive returns after recovering from a sluggish period in the past six months. It returned 3.63% in the past six months.
• The book value per share of the company has been improving for the past two years.
• One of the most significant positive signs is an increase in the FII and FPI investment in the company. The foreign institutional investors are increasing their shareholding in HDFC. This signifies the future potential of the firm.
• There is growth in the operating profit margins as well every year.

Kotak Mahindra Bank – Top Blue Chip Stocks to Buy

As per our evaluation, the eighth Top Blue Chip Stocks to buy is Kotak Mahindra Bank. Kotak Mahindra Bank Limited is one of the premier banks in the country.

It is engaged in different segments of banking and other financial services. Kotak Mahindra Bank has it all, from commercial to investment banking to stockbroking.

It also offers a wide range of insurance products, loans, and asset management services.

Why should you invest in Kotak Mahindra Bank Limited stocks?

There are ample reasons for investing in this Blue Chip Company in India, and you can get the idea after looking at its fundamentals:

• The TTM EPS has been growing, and it is pretty high compared to its peers. It is at present 54.37
• The ROA of the company has been improving, which signifies the company management has been managing the assets pretty well.
• Net profit margin as per quarter on quarter basis has increased and also the net profit as per both quarterly, and yearly basis has been increasing.
• For the past three quarters, the revenue has been growing.
• Book value per share has been improving for the past two years.
• There is a Zero promoter pledge in Kotak Mahindra Bank.
• The Kotak Mahindra shareholders earned around 15.39% in the past six months.
• According to Kotak Mahindra Bank Stock Prediction, it is expected to provide decent returns.

Asian Paints – Best Blue Chip Company in India

Asian Paints is a name that most of us know, isn’t it? So, our 9th Best Blue Chip Company in India is Asian Paints. It manufactures and supplies different paints for multiple sectors.

If you think that it only produces paints for homes, it has multiple segments like automotive paints, industrial paints, etc. Apart from paints, other products are related to home décor and painting like primer, putty, filters, etc.

It has a vast chain of distributors across the country. The research and development team of Asian Paints works tirelessly to bring in new advanced ways of painting your home or cars or industrial machinery.

Why should you invest in Asian Paints stocks?

There are ample reasons to buy this Blue chip Stock:

• It has a high TTM PE, and so is the TTM EPS, and both are growing as well, which signifies the company’s potential.
• Asian Paints is not high on debts. Rather the percentage of debt in their capital structure is relatively low
• The revenue and profits have been increasing over last two quarters
• The net profit margin has also been growing for the last quarters
• The cash flow from operating business activities has been increasing, which is another good sign.
• Book value per share has been improving for the past two years
• The promoter’s pledge has been decreasing in the company.
• Stakeholders of Asian Paints have gained 30.74% from the returns on shares in the past year.
• Asian Paints Share Forecast suggests that it has very good future potential.

ITC – Top 10 Blue Chip Shares to Buy

ITC is our tenth pick out of the Top 10 Blue Chip Shares to buy. It is one of India’s largest private sector companies, with a huge market capitalization and yearly turnover.

The company has also been ranked as India’s top 10 most valuable brands in a survey conducted by Brand Finance and Economic times published same.

The core business includes hotels, packaging, FMCG, Agriculture-related businesses, and Information technology. It is one of the premium brands in producing cigarettes in the country.

It has a wide range of business segments, including the above, and then there are stationery items, branded clothes, personal care items, and a lot more.

Why should you invest in ITC Limited stocks?

The factor which you can rely on for investing in this Blue chip Stock are –

• Usually, Blue chip companies have higher share prices. However, ITC is a Low price Blue chip Stock that you can buy. This also signifies that the company has a long way ahead while other Blue chip companies are nearing their saturation points.
• The company maintains a low debt which is beneficial for the stakeholders.
• For the past two quarters, the revenue has been increasing and the profit for long term investment.
• ITC stakeholders gained around 12.9% in the past six months.

Larsen & Toubro – Blue Chip Stocks to Buy

Apart from the top ten Blue Chip Stocks to buy, we have a few more Blue chip stocks worth investing in. The first is Larsen & Toubro, commonly known as L&T.

In the past year, it returned 28.16% to the stakeholders. This company is primarily engaged in construction and engineering businesses.

Apart from that, it also has technology-related products and services and also manufactures multiple products. The book value of the company on a per-share basis has been increasing for the last two years.

There has been increasingly investing from the foreign institutional investors in this company which signifies potential growth of the firm.

Other financials suggest that this stock can be a good buy if you consider investing in Blue chip stocks in India.

Avenue Supermarts – Blue Chip Companies Stocks to Buy

The 12th Blue Chip Companies Stocks to buy is Avenue Supermarts, which provided 44.94% return in the past year, the highest amongst all these 15 companies mentioned in this article.

The company is engaged in supplying multiple retail products or consumer goods like garments, toys, stationeries, beauty, personal care products, home utility products, and many more.

It buys these businesses basically and then offers the products to the customers. The reasons for investing in this stock can be its increasing profits for the past two quarters or the increase in profit margin.

Then the book value per share has also been increasing, and there is no debt in the company’s financial structure.

Maruti Suzuki – Blue chip Companies Shares to Buy

Maruti Suzuki needs no introduction, and it is our 13th pick for the Blue chip Companies Shares to buy. The firm has been consistent in its performance and has provided decent returns with inevitable ups and downs over the years.

As everyone would know, it is engaged in the production and manufacturing of motor vehicles (four-wheelers), automobile components, and other spare parts.

The primary reason for investing in this company is its brand value, increasing FII and FPI investments, improving profits and profit margin.

There is also a low debt ratio in this firm, another added benefit. In the past year, it returned around 14.08% to the stakeholders.

Axis Bank – Blue Chip Company in India

The 14th Blue Chip Company in India is Axis Bank to invest in. It provided a decent return of 12.74% in the past year. The bank has been excellently performing well in retail and commercial segments.

The reasons you can look at to pick this stock include its growing TTM EPS and annual EPS growth. Then there is growth in the net profit and profit margin as well. The company has a Zero promoters pledge.

The revenue of the company has been increasing over the past four quarters continuously. The company has been witnessing growth in FII/FPI investments over the years.

Coal India – Blue Chip Stocks in India

Coal India is a Low Price Blue chip Stocks in India that you can include in your portfolio if you are looking for equities that provide a decent return with low risk.

It is the largest coal-producing company in India and around the world. The primary product is coal, but it also produces coking coal, non-coking coal of different grades for multiple uses.

The clients of Coal India include thermal power plants, steel manufacturing companies, industrial producers, and others.

The reason for investing in this stock can be rising net cash flow, and the primary cash flow comes from operating activities.

There are Zero promoters pledged in this company. The profit margin along with net profit has been increasing over the quarters. It returned 23.62% in a year to the stakeholders’ equity.

How to identify a good Blue Chip Stock for Trading?

The ways to trade in Blue Chip Stocks and identify the best stock include:

• A thorough analysis of the fundamentals
• You need to check whether the EPS is high or not. If yes, then whether it is at par with the sector EPS or not.
• Then you need to consider the profit and profit margins for the past five years at least to check whether the company is consistent with its return or not.
• In the case of Blue chip companies, the price can be higher, so you need to check the investment time and plan it accordingly.
• You need to check dividend yield if you look for regular income from these companies’ stocks.
• The returns need to be evaluated over the short-term and the long-term.
• Then you need to analyze the opportunities the company has, potentials, risks, and threats.

Why invest in Blue Chip Stock?

There are abundant reasons to Invest in Blue Chip Shares, and some of them are:

• Firstly, the Brand value and goodwill of Blue chip shares make them consistent with their return. They can withstand challenging markets compared to other companies. The volatility factor is relatively minor in Blue chip companies.
• Secondly, it is easier to get all the information about Blue chip companies. You can quickly get the annual reports, fundamentals, and financial data compared to new companies. This helps in proper company analysis and helps you make the right investment decision.
• Blue chip companies provide decent returns, and also you can earn dividends from most of these companies as a regular income source.
• The risk of investment in Blue chip stocks is pretty low.

Blue chip Companies & its Price Valuation

Before you trade in Blue Chip Companies, you need to understand these companies’ valuation or market capitalization.

As mentioned above, these companies’ valuation or market capitalization is very high, so let us look at the market capitalization and its pricing. Reliance Industries has a market capitalization of around 1612234.882 crores, followed by TCS with 14241324.79 crores; then HDFC Bank has a market capitalization of 851047.769 crores.

Market capitalization is calculated by multiplying the share market price of the share with the total number of shares outstanding.

Suppose the market price of a company is Rs. 1000 and the total number of shares outstanding of this company is 400000. Then the market capitalization would be Rs. 4000000.00.

How to Invest in Blue Chip Stocks?

To Invest in Blue Chip Stocks, you need to have a Demat account and trading account.

You can open the same with any brokerage house. Then once you have the Demat and trading account, you can select the stock you want to invest your money in.

Now click on the buy button and enter the units you want to purchase.

Suppose you want to buy 100 shares of Reliance Industries, then select the Reliance Industries stock, enter the unit, enter the price at which you want to buy, or if you want to buy at the market price, then click on enter and place the order.

Once the order gets executed, your Demat account will have 100 shares of Reliance Industries. You can keep the shares until your desired price is reached, then sell and book profit.

Is there any risk of investing in Blue chip Companies? – Cons

Blue Chip companies are low-risk stocks, and High Dividend investment. However, there are certain drawbacks such as :

Sluggish growth: Since most Blue chip companies have surpassed the stage of growth, you cannot expect exponential returns from these stocks.

You will see sluggish but decent and constant growth in these stocks (in most cases).

Higher price: Another drawback is the high price of these blue-chip stocks.

Since these companies are well-established and have very high market capitalization, the prices of their stocks are also on the higher end, making it a little difficult for traders and investors to buy these shares in bulk.

Best Blue Chip Stocks to buy in India – Conclusion

We have already discussed the top Blue Chip Stocks in India and why to invest in them. Investing in stocks is risky and should be done carefully.

While investing, it is better to avoid the instructions of others. One should rely on their research and analysis of the market. Good luck with investing!

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