Are you looking for the best Blue Chip Stocks to buy in India for 2023? Do you want to invest your money in blue chip stocks in 2023? if your answer is yes, Then
This blog helps you a lot to know and learn about what blue chip stocks are; what are the advantages as well as disadvantages of blue chip stocks; the best blue chip stocks in which you can invest your money for 2023; and a lot more.
Table of Contents
What are Blue Chip Stocks?
So first of all, we need to understand what blue chip stocks are.
- Blue Chip Companies are those companies that have a huge market capitalisation. And the stocks of these companies are known as “Blue Chip Stocks”.
- Mostly, these companies have a high reputation, pay regular dividends to their investors, and have been running for years. People believe and trust these companies.
- Blue chip companies are the market leaders in their fields. These companies are generally diversified in their products and services.
Advantages of blue chip stocks
Why are blue chip stocks attractive and why do people want to invest in blue chip stocks? Here are some of the advantages of investing in blue chip stocks:
Low risk
- Blue chip stocks are considered low-risk stocks because they are the best company stocks in the country.
- People used to believe in these stocks because they are reputed and well-known companies’ stocks.
- These companies have been running for the past several years. This is why the risk of investing in blue chip companies is low.
Stable And Regular Dividends
- Let’s first discuss dividends. So, dividends are some part of the profit distributed by the companies to their shareholders.
- Blue chip companies make huge profits and revenue. That’s why they are market leaders.
- Hence, they distribute some part of their profit as a dividend to their shareholders. Blue chip companies generally distribute stable and regular dividends to their shareholders.
Liquidity
- As we discussed that these companies are the leaders in their fields, and that’s why the stocks of these companies are popular.
- Due to their popularity among investors, the liquidity of these stocks is high for trading. This means if someone wants to buy or sell these stocks, they can easily do it in the market.
Financially Stable
- Blue chip companies have high profits, high revenue, high surplus cash, etc. So their balance sheets are generally good. They hardly have any debt, or if they have any debt, then they have only a small amount.
- So we can say that they are financially good companies, so in case of any financial disaster or crisis, they can survive independently.
Diversification
- Diversification means investing their money or spreading their products’ variety in different categories and sectors. So that if one industry or product doesn’t work well, then it doesn’t affect much.
- Generally, blue chip companies have a vast variety of products or services. So your investments also get diversified when you invest in them.
Disadvantages of Blue Chip Stocks
Now let’s talk about why investing in blue chip stocks can be a disadvantage:
Moderate growth potential
- Since they are big companies with huge revenue and market capitalisation, they are running now at a moderate speed that’s why the potential for these companies for exponential growth is less.
- You can invest your money in blue chip stocks to get regular and moderate risk but not expect exponential huge growth from these stocks.
Less Innovative
- Since blue chip companies have been running for a long time so the chances of innovating something different are less. Because they are used to the same work, the same market, the same customer and the same image.
- It’s also not easy to start something new for a blue chip company because of its size.
Downside risk
- There is always a downside risk involved in these blue chip companies. Because a lot of investors are invested in these companies, and when there is good news in the market or news for the company, the stock price goes up.
- But in the case of bad news, the stock price gets down rapidly because of the company’s popularity. That’s the downside risk involved in blue chip companies.
Dividends vs. growth
- The last disadvantage of blue chip stocks is that they give regular dividends to their investors. That dividend is like a passive income for investors.
- But giving dividends is not always good for any company as well as investors. For example, if a company has debt and pays dividends to its shareholders instead of paying down the debt, this can be a bad decision for the company in the long run.
- That’s why growth is more important than dividends when looking for a company to invest in.
Best Blue chip Stocks For 2023
Reliance Industries Ltd.
Reliance Industries is a private sector company running for more than 45 years. In its initial days, it dealt with the manufacturing of textile products. But now it’s India’s largest private sector company and deals in almost every sector like oil, FMCG, telecom, jewellery, etc. It is also a Fortune Global 500 company. For more Click Here
| Market Capitalisation: ₹ 16,50,564.24 Cr. |
| P/E Ratio: 36.21 |
| P/B Ratio: 3.39 |
| Sector PE: 12.71 |
| Sector PB: 1.42 |
| EPS: ₹ 67.37 |
| Dividend Yield: 0.32% |
| Sales Growth: 72.27% |
| Profit Growth: 22.35% |
| Promotor’s Holding: 50.62% |
| ROE: 8.63% |
| ROCE: 8.21% |
| Cash: ₹ 21,714 Cr. |
| Debt: ₹ 1,94,563 Cr. |
| Debt/Equity Ratio: 0.41 |
Tata Consultancy Services Ltd.
Tata Consultancy Service (TCS) is a part of the Tata group of companies. Any Tata company is considered to be very reputable when it comes to its values and work culture. TCS was stabilised in 1968 and listed on the stock market in 2004. Tata Consultancy Services is the Leader in IT services, consulting, & business solutions. Tata Consultancy Services (TCS) is India’s largest IT business in terms of revenue and market capitalisation. Learn More About TCS
| Market Capitalisation: ₹ 10,91,147.41 Cr. |
| P/E Ratio: 28.35 |
| P/B Ratio: 12.81 |
| Sector PE: 24.08 |
| Sector PB: 6.68 |
| EPS: ₹ 105.20 |
| Dividend Yield: 1.44% |
| Sales Growth: 17.93% |
| Profit Growth: 23.34% |
| Promotor’s Holding: 72.3% |
| ROE: 50.76% |
| ROCE: 66.74% |
| Cash: ₹ 13,692 Cr. |
| Debt: ₹ 0 Cr. |
| Debt/Equity Ratio: 0 |
Hindustan Unilever Ltd.
Hindustan Unilever Ltd. (HUL) is India’s largest Fast Moving Consumer Goods (FMCG) company in terms of revenue and market capitalisation. Hindustan Unilever Ltd (HUL) had several brands with so many distinguished categories such as skin care, soaps, detergents, toothpaste, shampoos, cosmetics, tea, coffee, packaged food, ice cream, and so much more. Due to its vast category, Hindustan Unilever Ltd (HUL) is an everyday part of the lives of millions of people. More
| Market Capitalisation: ₹ 6,30,172.12 Cr. |
| P/E Ratio: 69.66 |
| P/B Ratio: 12.34 |
| Sector PE: 49.88 |
| Sector PB: 9.41 |
| EPS: ₹ 38.50 |
| Dividend Yield: 1.27% |
| Sales Growth: 11.30% |
| Profit Growth: 10.86% |
| Promotor’s Holding: 61.9% |
| ROE: 18.33% |
| ROCE: 24.61% |
| Cash: ₹ 3,618 Cr. |
| Debt: ₹ 0 Cr. |
| Debt/Equity Ratio: 0 |
Infosys Ltd.
Infosys is a New York Stock Exchange (NYSE) listed global IT services and consulting company. The company became the first Indian IT company to be listed on NASDAQ. Infosys is India’s leading technology, consulting, unique digital services and outsourcing company. Infosys is the 2nd largest IT service company in India.
| Market Capitalisation: ₹ 5,74,557.81 Cr. |
| P/E Ratio: 26.83 |
| P/B Ratio: 7.81 |
| Sector PE: 24.08 |
| Sector PB: 6.68 |
| EPS: ₹ 50.88 |
| Dividend Yield: 2.23% |
| Sales Growth: 20.98% |
| Profit Growth: 17.66% |
| Promotor’s Holding: 13.81% |
| ROE: 30.37% |
| ROCE: 40.65% |
| Cash: ₹ 12,270 Cr. |
| Debt: ₹ 0 Cr. |
| Debt/Equity Ratio: 0 |
Bharti Airtel Ltd.
Bharti Airtel . is a leading global telecommunications company. The company operates in countries across Asia and Africa. The company ranks among the top 3 mobile service providers globally in terms of subscribers. In India, the company offers wireless mobile internet, high-speed home broadband, DTH and much more.
| Market Capitalisation: ₹ 4,59,378.98 Cr. |
| P/E Ratio: 0 |
| P/B Ratio: 5.43 |
| Sector PE: -168.70 |
| Sector PB: 6.68 |
| EPS: ₹ -4.67 |
| Dividend Yield: 0.39% |
| Sales Growth: 9.82% |
| Profit Growth: 85.61% |
| Promotor’s Holding: 55.93% |
| ROE: -4.64% |
| ROCE: 5.60% |
| Cash: ₹ 328.50 Cr. |
| Debt: ₹ 1,03,408.10 Cr. |
| Debt/Equity Ratio: 1.31 |
Asian Paints Ltd.
Asian Paints has been manufacturing a wide range of paints for industrial and decorative use since 1942. The company provides products like paints, chemicals, wall coverings, waterproofing solutions, wall stickers, kitchen fittings and so much more. They also provide services like home painting services, interior design services, colour consultancy, etc.
| Market Capitalisation: ₹ 3,25,671.63 Cr. |
| P/E Ratio: 91.58 |
| P/B Ratio: 22.69 |
| Sector PE: 13.39 |
| Sector PB: 2.63 |
| EPS: ₹ 37.07 |
| Dividend Yield: 0.56% |
| Sales Growth: 36.03% |
| Profit Growth: 2.72% |
| Promotor’s Holding: 52.62% |
| ROE: 24.66% |
| ROCE: 33.48% |
| Cash: ₹ 308.57 Cr. |
| Debt: ₹ 16.16 Cr. |
| Debt/Equity Ratio: 0 |
Nestle India Ltd.
Nestle India Ltd. continuously focuses its effort on providing a new lifestyle for Indian people through its offerings in taste, nutrition, health and wellness. The product variety of the company includes beverages, breakfast cereals, dairy, chocolates, nutrition, food, etc.
| Market Capitalisation: ₹ 1,78,329.54 Cr. |
| P/E Ratio: 84.35 |
| P/B Ratio: 76.59 |
| Sector PE: 49.88 |
| Sector PB: 9.41 |
| EPS: ₹ 219.27 |
| Dividend Yield: 1.08% |
| Sales Growth: 10.18% |
| Profit Growth: 3% |
| Promotor’s Holding: 62.76% |
| ROE: 104.53% |
| ROCE: 147.86% |
| Cash: ₹ 735.41 Cr. |
| Debt: ₹ 34.06 Cr. |
| Debt/Equity Ratio: 0.02 |
HCL Technologies Ltd.
HCL Technologies Ltd. is a leading global IT services company. They offer enterprises the benefit of reaching their maximum through their services. HCL provide their products and services in three units. These are OT and Business Services (ITBS), Engineering and R&D Services (ERS), and Products and Platforms (P&P).
| Market Capitalisation: ₹ 2,43,103.69 Cr. |
| P/E Ratio: 22.34 |
| P/B Ratio: 5.38 |
| Sector PE: 24.08 |
| Sector PB: 6.68 |
| EPS: ₹ 40.09 |
| Dividend Yield: 4.68% |
| Sales Growth: 13.92% |
| Profit Growth: 24.37% |
| Promotor’s Holding: 60.72% |
| ROE: 25.27% |
| ROCE: 30.90% |
| Cash: ₹ 4,849 Cr. |
| Debt: ₹ 226 Cr. |
| Debt/Equity Ratio: 0.01 |
Titan Company Ltd.
Titan Company Ltd. is a joint company between the Tamil Nadu Industrial Development Corporation (TIDCO) and the Tata Group. It started its operations in 1984 under the name Titan Watches Ltd. Tata Company Ltd. offers a variety of products and services such as watches & accessories, jewellery, eyewear, and others.
| Market Capitalisation: ₹ 2,37,256.41 Cr. |
| P/E Ratio: 81.48 |
| P/B Ratio: 23.34 |
| Sector PE: 141.12 |
| Sector PB: 5.87 |
| EPS: ₹ 32.80 |
| Dividend Yield: 0.28% |
| Sales Growth: 32.07% |
| Profit Growth: 148.57% |
| Promotor’s Holding: 52.9% |
| ROE: 25.76% |
| ROCE: 23.68% |
| Cash: ₹ 1,049 Cr. |
| Debt: ₹ 5,386 Cr. |
| Debt/Equity Ratio: 0.57 |
Britannia Industries Ltd.
Britannia Industries Ltd. is among the most trusted food brand in India and manufactures some of the country’s favourite brands like Tiger, Good Day, NutriChoice, Milk Bikis, and Marie Gold, which are common household names in India. The product offerings of Britannia are biscuits, bread, dairy, cakes, etc.
| Market Capitalisation: ₹ 91,450.47 Cr. |
| P/E Ratio: 62.68 |
| P/B Ratio: 33.57 |
| Sector PE: 49.88 |
| Sector PB: 9.41 |
| EPS: ₹ 60.57 |
| Dividend Yield: 1.49% |
| Sales Growth: 8.02% |
| Profit Growth: -8.91% |
| Promotor’s Holding: 50.55% |
| ROE: 56.31% |
| ROCE: 47% |
| Cash: ₹ 52.29 Cr. |
| Debt: ₹ 2,178.14 Cr. |
| Debt/Equity Ratio: 0.91 |
Eicher Motors Ltd.
Eicher Motors Ltd. is the leading company in the Indian automobile industry. The company manufactures and sells motorcycles, as well as spare parts and related services. One of the favourite motorcycles of Eicher Motors is the Royal Enfield, which almost every Indian wants to buy.
| Market Capitalisation: ₹ 1,00,862.78 Cr. |
| P/E Ratio: 53.11 |
| P/B Ratio: 8.9 |
| Sector PE: 52.99 |
| Sector PB: 5.19 |
| EPS: ₹ 69.45 |
| Dividend Yield: 0.57% |
| Sales Growth: 17.45% |
| Profit Growth: 19.29% |
| Promotor’s Holding: 49.21% |
| ROE: 15.57% |
| ROCE: 20.70% |
| Cash: ₹ 2,698.56 Cr. |
| Debt: ₹ 5.98 Cr. |
| Debt/Equity Ratio: 0 |
Dr. Reddy’s Laboratories Ltd.
Dr. Reddy’s Laboratories Ltd. has been a generic business in India since 1986. Today is a trusted name in the healthcare industry and serves the needs of millions of patients with high-quality, affordable and innovative medicines across India.
| Market Capitalisation: ₹ 68,903.63 Cr. |
| P/E Ratio: 40.31 |
| P/B Ratio: 3.69 |
| Sector PE: 34.43 |
| Sector PB: 4.21 |
| EPS: ₹ 102.68 |
| Dividend Yield: 0.72% |
| Sales Growth: 7.91% |
| Profit Growth: -25.76% |
| Promotor’s Holding: 26.71% |
| ROE: 9.26% |
| ROCE: 11.68% |
| Cash: ₹ 2,030.50 Cr. |
| Debt: ₹ 2,205.40 Cr. |
| Debt/Equity Ratio: 0.12 |
Avenue Supermarts Ltd. (Dmart)
Avenue Supermarts Ltd. is a Mumbai-based supermarket chain known as D-Mart. It has been running since 2002. The company is the most affordable and largest F&G retailer in India. It offers a wide range of products, including foods, non-foods (FMCG) and generic merchandise and apparel product categories.
| Market Capitalisation: ₹ 2,82,883.21 Cr. |
| P/E Ratio: 129.72 |
| P/B Ratio: 19.42 |
| Sector PE: 141.12 |
| Sector PB: 5.87 |
| EPS: ₹ 33.66 |
| Dividend Yield: 0% |
| Sales Growth: 27.60% |
| Profit Growth: 38.69% |
| Promotor’s Holding: 74.99% |
| ROE: 12.36% |
| ROCE: 16.94% |
| Cash: ₹ 284.31 Cr. |
| Debt: ₹ 0 Cr. |
| Debt/Equity Ratio: 0 |
Pidilite Industries Ltd.
Pidilite Industries Ltd. offers adhesives, sealants, waterproofing solutions, construction chemicals for arts & crafts, industrial resins, polymers and many more. Today, Pidilite is a trusted company in household and industrial sectors. Also, Pidilite is the market leader in adhesives in India.
| Market Capitalisation: ₹ 1,42,356.75 Cr. |
| P/E Ratio: 108.38 |
| P/B Ratio: 21.19 |
| Sector PE: 13.39 |
| Sector PB: 2.63 |
| EPS: ₹ 25.84 |
| Dividend Yield: 0.36% |
| Sales Growth: 34.17% |
| Profit Growth: 17.31% |
| Promotor’s Holding: 69.94% |
| ROE: 21.29% |
| ROCE: 27.25% |
| Cash: ₹ 119.31 Cr. |
| Debt: ₹ 105 Cr. |
| Debt/Equity Ratio: 0.02 |
HDFC Bank Ltd.
HDFC Bank Ltd. was among the first to receive approval from the Reserve Bank of India (RBI) to set up a private bank in 1994. Now HDFC Bank is one of the leading private banks in India. HDFC offers a wide range of banking services.
| Market Capitalisation: ₹ 8,05,047.51 Cr. |
| P/E Ratio: 20.95 |
| P/B Ratio: 3.22 |
| Sector PE: 21.01 |
| Sector PB: 2.19 |
| EPS: ₹ 69.03 |
| Dividend Yield: 1.04% |
| CASA %: 48.17 |
| Profit Growth: 18.78% |
| Promotor’s Holding: 25.73% |
| ROE: 16.67% |
| ROCE: 14.62% |
| CAR %: 18.9 |
| Cost To Income %: 36.88 |
| Cost Of Liabilities %: 3.20 |
Tata Power Company Ltd.
Tata Power Company Ltd. is in the business of generation, transmission, and distribution of electricity. The products & services of Tata Power are power supply, EV charging solutions, solar rooftops, solar pumps, solar RO systems and much more.
| Market Capitalisation: ₹ 71,735.37 Cr. |
| P/E Ratio: 15.48 |
| P/B Ratio: 6.35 |
| Sector PE: 30.00 |
| Sector PB: 3.96 |
| EPS: ₹ 14.50 |
| Dividend Yield: 0.78% |
| Sales Growth: -15.65% |
| Profit Growth: 856.92% |
| Promotor’s Holding: 46.86% |
| ROE: 33.76% |
| ROCE: 14.15% |
| Cash: ₹ 78.55 Cr. |
| Debt: ₹ 24,708.38 Cr. |
| Debt/Equity Ratio: 2.27 |
Bajaj Finserv Ltd.
Bajaj Finserv Ltd. handles the financial services of the Bajaj Group. The core businesses are lending, insurance, and wealth advisory.
| Market Capitalisation: ₹ 2,74,266.36 Cr. |
| P/E Ratio: 417.51 |
| P/B Ratio: 61.47 |
| Sector PE: 21.01 |
| Sector PB: 2.19 |
| EPS: ₹ 4.12 |
| Dividend Yield: 0% |
| Sales Growth: 92.70% |
| Profit Growth: 137.29% |
| Promotor’s Holding: 60.8% |
| ROE: 10.81% |
| ROCE: 13.79% |
| Operating Revenue: ₹ 623.83 |
| Net Profit: ₹ 424.23 |
| ROA %: 10.21 |
Wipro Ltd.
Wipro is a leading global IT, consulting and business process services company. The company helps its clients to adapt to the digital world and make them successful. Services offered by Wipro is Data, Analytics & AI, applications, digital operations and platforms, consulting, and much more.
| Market Capitalisation: ₹ 2,16,319.36 Cr. |
| P/E Ratio: 17.24 |
| P/B Ratio: 3.86 |
| Sector PE: 24.08 |
| Sector PB: 6.68 |
| EPS: ₹ 22.87 |
| Dividend Yield: 1.52% |
| Sales Growth: 18.44% |
| Profit growth: 20.62% |
| Promotor’s holding: 73% |
| ROE: 24.58% |
| ROCE: 27.65% |
| Cash: ₹ 4,898.10 Cr. |
| Debt: ₹ 7,679.10 Cr. |
| Debt/Equity Ratio: 0.14 |
ICICI Bank Ltd.
ICICI Bank is the leading and largest private sector bank in India. ICICI Bank offers a wide range of financial products and services to retail, corporate, and SME customers.
| Market Capitalisation: ₹ 6,14,701.01 Cr. |
| P/E Ratio: 23.99 |
| P/B Ratio: 3.53 |
| Sector PE: 21.01 |
| Sector PB: 2.19 |
| EPS: ₹ 36.78 |
| Dividend Yield: 0.57% |
| CASA %: 48.70 |
| Profit growth: 44.14% |
| Promotor’s holding: 0% |
| ROE: 14.99% |
| ROCE: 14.01% |
| CAR % : 19.16 |
| Cost To Income %: 40.52 |
| Cost To Liabilities %: 3.32 |
Deepak Nitrite Ltd.
Deepak Nitrite was established in 1970. The company is one of India’s fastest-growing intermediate companies. It manufactures Phenol, Acetone & Iso-Propyl Alcohol through its subsidiary, Deepak Phenolics Limited. They manufacture their products for domestic and international markets.
| Market Capitalisation: ₹ 29,511.36 Cr. |
| P/E Ratio: 65.81 |
| P/B Ratio: 12.54 |
| Sector PE: 13.39 |
| Sector PB: 2.63 |
| EPS: ₹ 32.88 |
| Dividend Yield: 0.32% |
| Sales Growth: 38.80% |
| Profit growth: 37.07% |
| Promotor’s holding: 45.72% |
| ROE: 23.71% |
| ROCE: 31.34% |
| Cash: ₹ 9.04 Cr. |
| Debt: ₹ 13.99 Cr. |
| Debt/Equity Ratio: 0.01 |
Note: The above stocks are just recommendations; don’t invest blindly. Always do your own research or consult your financial advisor and invest according to your needs.
Conclusion
Investing in blue chip stocks can be a good decision for your investments. But it’s always advisable to invest in different kinds of companies or assets to minimise your losses and to make a good profit. And always remember the golden rule that “Don’t invest blindly, do your own research before investing”.