Top 10 Blue-Chip Stocks in India for July 2024: Your Exciting Guide to High-Value Investments

Blue-chip stocks are high-quality stocks of well-established companies with proven financial stability and consistent growth track records. The best blue-chip stocks in India are considered safe and reliable investments, making them a popular choice for long-term investors. They are also more resistant to economic fluctuations. This blog will give you the Top 10 Blue-Chip Stocks in India for July 2024 and highlight their importance in an investment portfolio.

Here is a list of the top blue-chip stocks sorted according to their price-to-intrinsic value rank and other fundamentals like Percentage Buy Reco’s and PE Ratio:

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data in the blue-chip share list of best stocks is from 5th June 2024.

1. Indusind Bank Ltd

IndusInd Bank Limited is engaged in banking and para-banking services. The Bank is involved in accepting deposits, such as savings accounts, current accounts, and fixed deposits, and banking solutions. The company’s revenue has grown at a yearly rate of 15.12%, higher than the industry average of 12.11%, over the past 5 years. In the same period, the company’s market share has increased from 4.92% to 5.66%.

2. Coal India Ltd

Coal India Limited (CIL) is a holding company. The Company is engaged in the production and sale of coal. It serves power and steel sectors, as well as cement, fertilizer, brick, and kilns industries, among others. The company’s revenue has grown at a yearly rate of 9.92% over the past 5 years, equal to the industry average. Additionally, the company’s market share has remained 100% during the same period.

3. State Bank of India

State Bank of India is a public sector bank providing a range of products and services to personal, commercial enterprises, large corporates, public bodies, and institutional customers. The company’s return on equity (ROE) is 16.72%, and its net profit margin is 11.28%. The stock has a market capitalisation of ₹7,39,493 crores and is ranked 6th.

4. Axis Bank Ltd

Axis Bank Limited (the Bank) provides a suite of corporate and retail banking products. The Bank’s segments include Treasury, Retail Banking, Corporate/Wholesale Banking, and Other Banking Business. The company’s revenue has grown at a yearly rate of 12.67%, higher than the industry average of 12.11%, over the past 5 years. In the same period, the company’s market share has increased from 13.06% to 13.49%.

5. NTPC Ltd

NTPC Limited is engaged in the generation of electricity. The Company is engaged in the generation and sale of bulk power to state power utilities. The company’s revenue has grown at a yearly rate of 13.79%, higher than the industry average of 13.69%, over the past 5 years. In the same period, the company’s current ratio has been 77.98, also higher than the industry average of 68.06.

6. ICICI Bank Ltd

ICICI Bank Limited is engaged in providing a range of banking and financial services, including commercial & retail banking, project & corporate finance, insurance, venture capital and private equity, investment banking, and broking. The company’s net income has grown at a yearly rate of 34.57%, higher than the industry average of 24.56%, over the past 5 years. In the same period, the company’s current ratio has been 14.44, also higher than the industry average of 11.88.

7. Hindalco Industries Ltd

Hindalco Industries Limited is an aluminum rolling company. The Company is a producer of aluminum and copper. The company’s revenue has grown at a yearly rate of 13.64%, higher than the industry average of 12.97%, over the last 5 years. In the same period, the company’s market share has increased from 89.99% to 92.51%, and the company’s net income has grown at a yearly rate of 10.67%, which is also higher than the industry average of 7.48%.

8. HDFC Bank Ltd

HDFC Bank Limited offers a range of banking services covering commercial and investment banking on the wholesale side and transactional/branch banking on the retail side. The company’s revenue has grown at a yearly rate of 15.09%, higher than the industry average of 12.11%, over the last 5 years. In the same period, the company’s market share has increased from 22.64% to 26.01%.

9. ITC Ltd

ITC Limited is a holding company engaged in the marketing of fast-moving consumer goods (FMCG). The Company operates through four segments: FMCG; Hotels; Paperboards, Paper, and Packaging; and Agri Business. The company’s revenue has grown at a yearly rate of 9.83%, higher than the industry average of 9.72%, over the last 5 years. In the same period, the company’s market share has increased from 92.64% to 93.27%.

10. Bajaj Finance Ltd

Bajaj Finance Limited is a non-banking finance company (NBFC). The Company is engaged in lending and allied activities. The company’s revenue has grown at a yearly rate of 26.55%, higher than the industry average of 14.25%, over the last 5 years. In the same period, the company’s market share has increased from 12.65% to 22.72%, and the company’s net income has grown at a yearly rate of 35.75%, which is also higher than the industry average of 21.71%.

Investing in Bluechip Stocks via smallcase

One can buy blue-chip shares individually or by buying mutual funds or exchange-traded funds (ETFs) that invest in blue-chip stocks. Funds and ETFs may occasionally own a range of equities and asset

types, including Indian blue-chip stocks. Other times, the funds or ETFs may only invest in blue-chip companies in India.

You can also invest in a basket of blue-chip stocks via smallcase. Simply go to smallcase.com or the smallcase app and log in via your phone number. Then, go to ‘Discover’ and enter ‘bluechip’ in the search bar and hit enter. You’ll find an array of stock portfolios that have blue-chip companies. Just pick the one that fits your investment criterion. Here are a few examples of blue-chip smallcases:

• Blue-Chip Value Mix: This smallcase managed by StoxBazar combines reliable, established, and well-known blue-chip companies.
• Quantace Bluechip Freedom (Monthly Picks): This smallcase managed by Quantace Research is a basket of stocks and ETFs to out-perform NIFTY (Recommended Size: ₹5+ lakh).

Make sure you do your diligent research before picking the right stock, considering your long-term investment goals and risk appetite.

What are Blue Chip Stocks in India?

Shares of very large, well-known corporations with a track record of reliable financial success are known as “blue-chip stocks.” Companies that issue blue-chip stocks are called blue-chip companies in NSE. These stocks have a reputation for being able to withstand challenging stock market fluctuations caused by economic challenges.

Where Does the Name ‘Blue Chip’ Come From?

The term “blue chip” originates from the world of poker, where different coloured poker chips denote different dollar amounts. As opposed to white chips and red chips, blue chips often have the highest value of all.

Features of Blue Chip Stocks (India)

Here are some of the features of top blue-chip stocks in India:

1. Provides Stable Returns: Blue-chip stocks are financially sound and usually dependable when it comes to stable returns. While blue-chip stocks may not offer high returns as small-cap and mid-cap firms, they offer reliable returns, assist with portfolio diversification, and reduce risk.
2. Offer Regular Dividends: Blue-chip shares regularly distribute quarterly or yearly dividends to their shareholders. Even though the dividend payout might vary depending on the organization’s performance and its expansion goals, dividends are meant to reward the shareholders for their investments and faith in them.
3. Offers Safety From Risk: Due to their strong financial standing, superior management, and reduced debt, blue-chip shares are often less volatile than mid-cap and small-cap stocks. Blue-chip companies are typically debt-free or have low debt levels, which is why they only have a limited influence during market volatility or market corrections.
4. Ideal for Long-Term Investors: Blue-chip firms are better investments if you have a longer time horizon since they offer stability amidst market fluctuations.

Who Should Invest in Blue Chip Companies?

Blue-chip stocks in India can be considered a desirable investment opportunity for risk-averse and long-term investors. Blue-chip shares in India are known for their market credibility and low-risk factor, making them ideal for conservative, risk-averse investors.

Benefits of Investing in Blue Chip Stocks

Investing in these stocks offers tons of benefits to investors. Some of these benefits include:

• Dividends as Passive Income: Regardless of market conditions, blue-chip companies pay regular dividends to their shareholders, and it can be considered one of the great ways to earn passive income.
• Stable & Diversified Portfolio: Blue-chip shares are not as fluctuating as other securities and require the least effort from you, and you do not have to track the stock price regularly.
• Ideal for Long-Term Investment: You can add blue-chip stocks with strong fundamentals and future growth to achieve a diversified portfolio. Your asset allocation in the portfolio relies on your risk appetite. If you are a conservative investor who does not want to take much risk, then you can allocate most of your capital to blue-chip stocks.

Factors Affecting Blue Chip Stocks

Several factors can significantly impact the performance of blue-chip stocks:

1. Economic Conditions: The economic environment is pivotal in blue-chip stock performance. These companies generally thrive in robust economies due to their stable revenue streams and growth opportunities. Conversely, economic downturns can marginally affect their performance.
2. Company Fundamentals: The financial health of the blue-chip company is a critical determinant. Metrics like earnings reports, revenue growth, profit margins, and debt levels all contribute to stock performance.
3. Interest Rates: Changes in interest rates can alter the appeal of blue-chip stocks. Higher interest rates can make bonds and other fixed-income investments more attractive, potentially diminishing stock demand.
4. Market Sentiment: Investor sentiment and market psychology exert a significant influence. Positive developments, such as robust earnings reports or successful product launches, can increase stock prices. Conversely, negative news, such as scandals or legal issues, can have adverse effects.
5. Industry Trends: Industry-specific factors are instrumental in blue-chip stock performance. Technological advancements, shifts in regulations, and changes in consumer preferences can impact blue-chip companies’ competitive positions and growth prospects.

Conclusion

Blue-chip investments can provide a safe and reliable source of returns for long-term investors. These stocks have a proven track record of financial stability and consistent growth, making them a popular choice for many investors. While there are some drawbacks to consider, Indian blue-chip stocks can provide a solid foundation for a well-diversified investment portfolio. As with any investment, it’s important to do your due research.

Frequently Asked Questions About Blue Chip Stocks

1. What are the 5 best blue-chip stocks should I buy?
   The top blue-chip stocks on our list based on price-to-intrinsic value rank, percentage buy reco’s, and PE ratio:
2. Indusind Bank Ltd
3. Coal India Ltd
4. State Bank of India
5. Axis Bank Ltd
6. NTPC Ltd Note: The data in this list of blue-chip stocks is from 5th June 2024. This list is for educational purposes only, and not recommendatory.
7. How can I invest in blue-chip sector stocks?
   You can invest in blue-chip stocks through various avenues:

• Blue-chip stocks of blue-chip companies in the stock market
• Mutual Funds
• Exchange Traded Funds (ETFs)
• smallcase

1. Is it a good time to invest in blue-chip stocks?
   The suitability of investing in blue-chip stocks at any given time depends on your individual financial goals and risk tolerance. However, doing your research and/or consulting a financial advisor before investing is important.
2. Can blue-chip stocks be profitable for investors?
   These stocks usually belong to established, large-cap companies known for their consistent track record and robust financials. However, investors should comprehend both the growth potential and challenges confronted by these companies before making any investments.
3. Which companies are considered blue-chip?
   Large corporations are well-known for their track record of financial success. A few blue-chip companies in India include Indusind Bank Ltd, Coal India Ltd, State Bank of India, etc.