Top Performing Blue Chip Stocks to Buy in NSE India (2024)

Last Updated on Oct 24, 2024 by Aishika Banerjee

Blue chip stocks are a publicly traded stock that is part of a well-established and financially sound company. These stocks are typically known for their stability, consistent growth, providing regular dividend payouts, and strong brand recognition. As they are less resistant to fluctuation in the economy and less volatile, these stocks are a safe choice if you’re looking to build an investment portfolio for the long-term. 

The term ‘blue chip’ is derived from the game of poker, in which blue chips are the most valuable chips.

Top Performing Blue Chip Stocks in India

Here are the top 10 blue chip companies in India sorted according to their price to intrinsic value rank:

Name	Sub-Sector	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio (%)	Percentage Buy Reco’s (%)	Price to Intrinsic Value Rank
Adani Enterprises Ltd	Commodities Trading	327,273.72	2835.55	101.02	100.00	94.85
Bharat Electronics Ltd	Electronic Equipments	196,377.21	268.65	49.29	77.27	77.21
Adani Ports and Special Economic Zone Ltd	Ports	289,555.82	1340.45	35.70	93.33	76.1
Reliance Industries Ltd	Oil & Gas – Refining & Marketing	1,811,341.94	2677.05	26.02	80.00	65.32
State Bank of India	Public Banks	701,475.13	786	10.46	76.92	64.83
Oil and Natural Gas Corporation Ltd	Oil & Gas – Exploration & Production	340,736.86	270.85	6.92	75.00	62.5
Mahindra and Mahindra Ltd	Four Wheelers	334,852.68	2793.5	29.72	94.29	59.31
Coal India Ltd	Mining – Coal	292,174.95	474.1	7.81	75.00	59.07
Larsen & Toubro Ltd	Construction & Engineering	475,115.74	3455.4	36.38	85.29	57.6
Axis Bank Ltd	Private Banks	358,985.98	1160.4	13.61	78.57	54.17

Note: The data on this top-performing blue chip share list was taken on 23rd October 2024. Apply the following filters on Tickertape Stock Screener to get this list:

• Stock universe – Nifty 50 
• Market capitalisation – Large cap
• Percentage Buy Reco’s – High
• Price to Intrinsic Value – Sorted from highest to lowest

Intrinsic value is its fair value as far as you or the analyst is concerned. High intrinsic value signifies the stock is underpriced, whereas low value signifies that the stock is overpriced on the bourse.

🚀 Pro Tip: Utilise Tickertape’s Market Mood Index to gauge market sentiment and make informed investment decisions based on real-time market data and trends.

Discover Blue Chip Investments Through smallcase!

Did you know that you can invest in readymade stock portfolios managed by SEBI-registered experts?

But first, what is a smallcase?

smallcases are modern investment products that help investors build low-cost, long-term & diversified portfolios with ease. A smallcase is a basket or portfolio of stocks/ETFs representing an idea – an objective, theme, or strategy. They are created and managed by SEBI-registered experts.

With over 500 smallcases to choose from, here are some of the most popular smallcases you can check out if you are interested in large-cap stocks:

Blue-Chip Value Mix smallcase by StoxBazar

Large Cap Momentum (AUM) smallcase by Flameback Capital

Note: The smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.

• Disclosures for the Blue-Chip Value Mix smallcase
• Disclosures for the Large Cap Momentum (AUM) smallcase

Overview of the Top-Performing Blue Chip Stocks Listed Above

Here are brief overviews of the companies on the list of blue chip stocks in India with price:

Adani Enterprises Ltd

Adani Enterprises Limited (AEL), the flagship company of the Adani Group, incorporated on 2nd March 1993, has established several unicorns, including Adani Power, Adani Transmission, Adani Ports & SEZ, Adani Total Gas, and Adani Green Energy. 

As of 23rd October 2024, the company had a market capitalisation of Rs. 327,273.72 cr., and its share price closed at Rs. 2835.55. Furthermore, its PE ratio is 101.02, and its percentage buy reco’s is 100.00%. The company has a price-to-intrinsic value rank of 94.85.

Bharat Electronics Ltd

Bharat Electronics Limited (BEL), founded in 1954 under the Ministry of Defence, caters to the specialised electronic needs of India’s defence sector. Over the years, the company has expanded into manufacturing various civilian products. Key customers in India include the Department of Telecommunication, Paramilitary Forces, Railways, DRDO, and the Election Commission of India.

As of 23rd October 2024, the company had a market capitalisation of Rs. 196,377.21 cr., and its share price closed at Rs. 268.65. Furthermore, its PE ratio is 49.29, and its percentage buy reco’s is 77.27%. The company has a price-to-intrinsic value rank of 77.21.

Adani Ports and Special Economic Zone Ltd

Adani Ports and Special Economic Zone Limited (APSEZ), India’s leading private port and SEZ enterprise, began as Gujarat Adani Port Ltd (GAPL) on 26th May 1998 to develop a private port at Mundra on India’s west coast. The company focuses on developing, operating, and maintaining port infrastructure, including port services and related projects. 

As of 23rd October 2024, the company had a market capitalisation of Rs. 289,555.82 cr., and its share price closed at Rs. 1340.45. Furthermore, its PE ratio is 35.70, and its percentage buy reco’s is 93.33%. The company has a price-to-intrinsic value rank of 76.1.

Reliance Industries Ltd

Reliance Industries Limited, an Indian multinational conglomerate based in Mumbai, was founded in 1958 by Dhirubhai Ambani as Reliance Commercial Corporation, a small textile manufacturing unit. 

As of 23rd October 2024, the company had a market capitalisation of Rs. 1,811,341.94 cr., and its share price closed at Rs. 2677.05. Furthermore, its PE ratio is 26.02, and its percentage buy reco’s is 80.00%. The company has a price-to-intrinsic value rank of 65.32.

State Bank of India

The State Bank of India (SBI), established on 1st July 1955, is an Indian multinational public sector bank and financial services provider headquartered in Mumbai. It holds about 25% of the Indian banking market and serves over 480 million customers.

As of 23rd October 2024, the company had a market capitalisation of Rs. 701,475.13 cr., and its share price closed at Rs. 786. Furthermore, its PE ratio is 10.46, and its percentage buy reco’s is 76.92%. The company has a price-to-intrinsic value rank of 64.83.

Oil and Natural Gas Corporation Ltd

Oil and Natural Gas Corporation (ONGC), India’s largest crude oil and natural gas producer, was founded by the Indian government on 14 August 1956. Established to boost India’s crude oil output through oil exploration, ONGC has discovered 8 of the country’s 9 producing basins.

As of 23rd October 2024, the company had a market capitalisation of Rs. 340,736.86 cr., and its share price closed at Rs. 270.85. Furthermore, its PE ratio is 6.92, and its percentage buy reco’s is 75.00%. The company has a price-to-intrinsic value rank of 62.5.

Mahindra and Mahindra Ltd

Mahindra & Mahindra (M&M), the flagship company of the Mahindra Group, was founded in 1945 as ‘Mahindra & Mohammed’, initially focusing on steel trading. In 1948, it rebranded as Mahindra & Mahindra. The company launched its IPO on 15th June 1955 and was listed on the Bombay Stock Exchange (BSE) in 1956, followed by the National Stock Exchange (NSE).

As of 23rd October 2024, the company had a market capitalisation of Rs. 334,852.68 cr., and its share price closed at Rs. 2793.5. Furthermore, its PE ratio is 29.72, and its percentage buy reco’s is 94.29%. The company has a price-to-intrinsic value rank of 59.31.

Coal India Ltd

Coal India Limited (CIL), founded on 1st November 1975, operates as a leading central public sector enterprise under the Ministry of Coal, Government of India. Headquartered in Kolkata, CIL is the world’s largest government-owned coal producer and employs approximately 2,72,000 people, making it the 9th largest employer in India.

As of 23rd October 2024, the company had a market capitalisation of Rs. 292,174.95 cr., and its share price closed at Rs. 474.1. Furthermore, its PE ratio is 7.81, and its percentage buy reco’s is 75.00%. The company has a price-to-intrinsic value rank of 59.07.

Larsen & Toubro Ltd

Larsen & Toubro Ltd (L&T), an esteemed Indian multinational conglomerate, actively engages in engineering, construction, manufacturing, technology, information technology, and financial services. Founded in Mumbai with its technical services headquarters in Chennai, L&T ranks among the world’s top five construction firms.

As of 23rd October 2024, the company had a market capitalisation of Rs. 475,115.74 cr., and its share price closed at Rs.3455.4. Furthermore, its PE ratio is 36.38, and its percentage buy reco’s is 85.29%. The company has a price-to-intrinsic value rank of 57.6.

Axis Bank Ltd

Axis Bank, established in 1994, is one of India’s pioneering new-generation private sector banks. Promoted in 1993 by the Specified Undertaking of Unit Trust of India (SUUTI) (formerly Unit Trust of India), along with General Insurance Corporation of India (GIC), Life Insurance Corporation of India (LIC), and other insurance companies, Axis Bank went public with its IPO in 1998. 

As of 23rd October 2024, the company had a market capitalisation of Rs. 358,985.98 cr., and its share price closed at Rs.1160.4. Furthermore, its PE ratio is 13.61, and its percentage buy reco’s is 78.57%. The company has a price-to-intrinsic value rank of 54.17.

What are the Blue Chip Stocks in India?

Blue chip companies are market leaders in their respective sectors and are very popular among investors. This is because they are well-established and reputed companies with strong financial resources to fend off tough times like recession, inflation, etc., and pay regular dividends to their investors. 

Features of Blue Chip Stocks in India

Blue chip stocks in India are known for their stability and reliability, making them an attractive option for investors. Here are the key features that define these blue chip stocks India:

Assured Returns

Blue chip stocks typically provide regular dividends, usually every quarter. This consistent income stream reflects the financial stability of these well-established companies, offering investors a sense of security.

Creditworthiness

These companies possess substantial capital, allowing them to fulfil financial obligations easily. Their strong credit ratings signify reliability, making their blue chip in stock market low-risk investments.

Low Risk Factor

Issued by financially stable companies, blue chip stocks, including top blue chip stocks, carry lower risk compared to other equities. Investors can further mitigate risk through portfolio diversification.

Long Investment Horizon

Blue chip stocks are generally suited for long-term investments, often requiring a horizon of over seven years. This extended timeframe aligns well with strategic financial planning and growth objectives.

Steady Growth Prospects

While blue chip companies may have reached their peak growth potential, they continue to show slow yet steady growth over time. This characteristic makes them attractive for investors looking for reliable capital appreciation.

Established Brand Reputation

Blue chip companies are often well-known and respected within their industries. Their strong brand presence contributes to consumer trust and loyalty, further enhancing their stability.

Resilience and Credibility

These companies have weathered various market fluctuations and crises, demonstrating resilience and maintaining a robust reputation. Their strong balance sheets reflect consistent profitability and effective management.

Taxation Considerations

In India, gains from blue chip stocks fall under Section 80C of the Income Tax Act. For short-term capital gains (assets held for less than 36 months), the tax rate is 15%. For long-term capital gains (assets held for more than 36 months), the tax rate has been revised to 12.5%, effective from 23rd July 2024, for gains exceeding Rs. 1 lakh in a financial year​. This structure makes blue chip stocks a tax-efficient investment choice.

How to Identify Blue Chip Companies in India?

Steady growth

Blue chip companies have been in the market for a long time and have witnessed growth over the years. You can identify blue chip stocks by filtering out stocks based on ‘5-yr historical revenue growth.’

High credibility

With strong balance sheets, established business strategies, etc., blue chip companies offering stocks can easily meet their financial obligations, making them creditworthy among investors. 

Low risk

Companies that offer blue chip stocks have survived market cycles and economic downturns. Therefore, on Tickertape Screener, blue chip stocks, including top 50 blue chip stocks in India, bear the ‘Low Risk’ tag.

Consistent returns

Blue chip stocks have demonstrated a good track record of paying consistent dividends to their investors over the years.

Low volatility

Blue chip stocks are not highly influenced by market volatility. Therefore, events that can shatter the market don’t dictate the price of these stocks.

Four Reasons to Invest in Blue Chip Stocks

Apart from their impressive track record of yielding dividends, here are some other reasons why you should invest in blue chip stocks – 

Safe alternative

Blue chip companies are well-established entities, and hence, their stocks, including the top 5 blue chip stocks, are considered relatively safer.

Constituents of benchmark indices

Many blue chip companies form part of benchmark indices such as Nifty 50, Nifty 100, and Sensex.

Strong cash flow

Blue chip companies often have a strong cash flow. However, this doesn’t mean the cash flow has to be positive. A negative cash flow can mean good when the company uses it for productive purposes such as funding expansion, which is a good sign too.

Suitable for long-term investment

Blue chip stocks are ideal for investors with a long-term horizon, preferably 5 to 7 years. In the table above, all the listed blue stock companies have generated substantial returns for investors over a long period.

Benefits of Investing in Blue Chip Companies in India

Investing in blue chip companies in India offers a variety of advantages that make them an attractive option for investors seeking stability and growth. Below are some of the key benefits:

• Stable and Regular Dividends: Blue chip stocks are renowned for providing consistent returns through dividends, which are usually paid quarterly. This stability is particularly valuable during fluctuating market conditions, offering investors a reliable source of income.
• Opportunity to Achieve Financial Goals: With an investment horizon typically exceeding seven years, blue chip stocks give investors ample time to accumulate wealth. This long-term perspective facilitates the creation of a robust financial corpus, enabling individuals to meet their financial aspirations effectively.
• Portfolio Diversification: Blue chip companies often operate across multiple sectors and revenue streams, which mitigates the impact of economic downturns. This diversification helps investors spread their risk, making blue chip stocks a safer addition to their portfolios.
• Liquidity: The high market reputation and creditworthiness of blue chip companies enhance their stock values. This characteristic ensures that investors can easily buy and sell these stocks in the market, providing them with the liquidity necessary to manage their investments efficiently.

Risks of Investing in Blue Chip Stocks in India

Investing in blue chip stocks in India is often seen as a stable choice, but it is essential to know the potential risks associated with this investment strategy. Here are some key risks to consider:

• Slow Growth Rate: Blue chip companies are typically well-established and mature, which can lead to slower growth compared to smaller, high-growth firms. Investors may need patience, as capital appreciation may not be as rapid, even in the best blue chip shares.
• Low Dividend Yields: Although blue chip stocks in Nifty 50 are known for their reliability, they may offer lower dividend yields due to their slow growth rates. This can be disappointing for income-focused investors who depend on regular dividend payments.
• Comparative Expense: The high demand for blue chip stocks—from their perceived stability and low risk—often results in elevated market prices. This can make them comparatively expensive when viewed alongside similar-sized stocks, potentially impacting the value of future returns.
• Dividend Cuts: While blue chip stocks, including the top 25 blue chip stocks, seek consistent dividends, there is no guarantee that these dividends will be maintained. Economic fluctuations or company-specific challenges can lead to reductions or eliminations of dividends, which may significantly affect investors relying on this income.
• Overvaluation Risks: In times of market uncertainty, investors may flock to blue chip stocks, driving up their prices and leading to potential overvaluation. This can limit future returns and increase the risk of a market correction, where the stock’s price may fall sharply, negatively impacting investors.

Alternative Investment Options to Blue Chip Stocks in India

Investors seeking alternatives to blue-chip stocks in India may consider the following options:

Real Estate

Real estate in India remains a lucrative investment avenue, offering both income through rentals and potential capital appreciation. Investors can diversify into residential or commercial properties, with opportunities to buy, sell, or lease. While the market may not be as fast-growing as before, it still offers long-term stability and growth prospects, making it a viable alternative to blue-chip stocks.

Exchange-Traded Funds (ETFs)

ETFs are a collection of securities that trade on exchanges, similar to stocks. They offer exposure to various asset classes, including equities, bonds, and commodities, with lower risk compared to direct stock investments. ETFs typically have lower expense ratios and are available in various forms, such as Gold ETFs, Bank ETFs, or International ETFs, providing a flexible, diversified investment choice.

Fixed Deposits (FDs)

For risk-averse investors, fixed deposits are a safe option, offering assured returns over a fixed tenure. FDs come with the added benefit of tax savings under specific conditions and provide liquidity through loans against deposits. This option is suitable for both short-term and long-term investment needs, offering stability without market volatility.

Government Bonds

Government bonds are debt securities issued by the Government of India and are considered one of the safest investment options. These bonds provide fixed returns and are monitored by the Reserve Bank of India (RBI). They are ideal for conservative investors looking to diversify their portfolios with low-risk, fixed-income instruments while also availing tax benefits in some cases.

Factors to Consider When Investing in Blue Chip Stocks in India

Here are a few key factors to consider when investing in blue chip stocks in India:

Market Capitalisation

Blue chip shares to buy are generally associated with companies that have a market capitalisation of over Rs. 20,000 cr. This large size often reflects their established position in the market. Understanding market capitalisation can provide insights into the stability and scale of these companies, making them significant players in their respective industries.

Financial Health

Analysing a company’s financial health is essential in assessing its stability and long-term viability. Key financial documents, such as balance sheets and profit and loss statements, offer a view into how the company manages its finances. In particular, a lower debt-to-equity ratio is often interpreted as a sign of sound financial management.

Return on Assets (ROA) and Return on Equity (ROE)

Metrics like Return on Assets (ROA), Average Rate of Return on blue chip stocks, and Return on Equity (ROE) highlight how effectively a company utilises its resources. ROA measures how well a company generates blue chip stock returns or profit from its assets, while ROE shows the returns generated on shareholders’ equity. Both indicators provide a deeper understanding of the company’s financial efficiency and profitability over time.

Historical Performance

The performance of blue chip stocks during economic downturns can be particularly revealing. Blue chips often maintain resilience in difficult market conditions, offering a window into their ability to navigate future challenges. Studying past performance provides a broader context for their market behaviour over time.

Dividend Yield

Many blue chip companies distribute a portion of their profits as dividends, which can appeal to investors seeking regular income. By exploring the dividend yield, one can understand how much income these companies typically return to shareholders compared to the stock’s price. This provides an additional perspective on the stock’s potential to offer returns beyond capital gains.

Growth Potential

Although blue chip stocks are known for stability, their growth tends to be gradual. Investigating the future growth potential of a company, such as its expansion plans or innovations, helps to understand whether these stocks still offer significant growth opportunities, especially as they are often closer to their peak market value.

Valuation and Intrinsic Value

Valuation plays a crucial role in understanding whether a stock is priced appropriately. The intrinsic value, which estimates the stock’s worth based on financial history and future earnings potential, serves as a comparison point to the market price. This concept provides a clearer view of whether the stock might be undervalued or overvalued.

Conclusion

The future of blue chip stocks in 2023 in India looks promising, as blue chip companies have strong business models and impressive track records of returns for investors. These returns often include regular dividend payments, making blue chip stocks top-rated among conservative investors. Even risk-tolerant investors should consider buying blue chip stocks to diversify their portfolios better and provide some stability during turbulent stock market periods.

Frequently Asked Questions About Blue Chip Stocks