Top Performing Blue Chip Stocks in India (2023)

Last Updated on Sep 7, 2023 by Harshit Singh

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.

Using Tickertape Stock Screener, we have generated a list of best blue chip stocks in India based on different parameters.

Table of Contents

Best blue chip stocks based on intrinsic value

Stock Name	Sub-Sector	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio (%)	Price to Intrinsic Value Rank (%)	Percentage Buy Reco’s
Oil and Natural Gas Corporation Ltd	Oil & Gas – Exploration & Production	2,30,282.01	183.05	6.50	98	76
State Bank of India	Public Banks	5,09,149.11	570.50	9.15	94	93
Indusind Bank Ltd	Private Banks	1,09,382.66	1,408.65	14.70	92	93
Tata Steel Ltd	Iron & Steel	1,58,391.12	129.60	18.08	89	81
Axis Bank Ltd	Private Banks	2,97,340.35	965.05	27.48	88	93
NTPC Ltd	Power Generation	2,24,865.69	231.90	13.30	86	95
Tata Motors Ltd	Four Wheelers	2,23,450.63	610.25	92.55	80	79
Hindalco Industries Ltd	Metals – Aluminium	1,07,058.13	478.15	10.60	78	95
ICICI Bank Ltd	Private Banks	6,70,343.68	957.50	19.69	71	93

Note: The data is as of 7th September 2023. The above list of blue chip stocks in India is derived from NIFTY 50 using Tickertape Stock Screener. Following filters are used to identify top performing stocks from a particular sector –

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.

Best blue chip stocks based on 1Y return

Stock Name	Sub-Sector	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio (%)	1Y Return (%)	1M Return (%)
Larsen & Toubro Ltd	Construction & Engineering	3,83,805.35	2,730.45	36.66	39.15	3.94
Oil and Natural Gas Corporation Ltd	Oil & Gas – Exploration & Production	2,30,282.01	183.05	6.50	38.57	5.60
NTPC Ltd	Power Generation	2,24,865.69	231.90	13.30	37.67	6.40
ITC Ltd	FMCG – Tobacco	5,57,980.77	447.45	29.07	36.77	-1.65
Tata Motors Ltd	Four Wheelers	2,23,450.63	610.25	92.55	33.32	-0.77
HCL Technologies Ltd	IT Services & Consulting	3,34,602.94	1,235.85	22.53	31.78	8.00
Dr Reddy’s Laboratories Ltd	Pharmaceuticals	92,920.58	5,583.30	20.62	31.71	-1.17
UltraTech Cement Ltd	Cement	2,46,107.39	8,537.40	48.60	31.44	4.65
Sun Pharmaceutical Industries Ltd	Pharmaceuticals	2,74,088.03	1,142.35	32.35	28.68	0.30
Axis Bank Ltd	Private Banks	2,97,340.35	965.05	27.48	28.67	1.34

Stock universe – Nifty 50
Market capitalisation – Large cap
1Y Return – Sorted from highest to lowest

Fundamentally strong blue chip stocks

Stock Name	Sub-Sector	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio (%)	5Y Avg Return on Investment (%)	5Y Avg Return on Equity (%)	Net Profit Margin (%)	Net Income (Q)
Infosys Ltd	IT Services & Consulting	6,11,460.34	1,477.45	25.38	25.55	27.40	16.12	5,945
ITC Ltd	FMCG – Tobacco	5,57,980.77	447.45	29.07	23.63	24.28	26.28	5,104.93
Bajaj Auto Ltd	Two Wheelers	1,32,531.57	4,683.80	21.87	20.82	21.54	15.88	1,644.14
Divi’s Laboratories Ltd	Labs & Life Sciences Services	98,434.42	3,707.95	53.98	19.79	21.45	22.48	356
Eicher Motors Ltd	Trucks & Buses	92,836.65	3,391.30	31.86	17.32	18.92	18.98	918.34

Stock universe – Nifty 50
Market capitalisation – Large cap
5Y Avg Return on Investment (%) – High
5Y Avg Return on Equity – High
Net Profit Margin – High

Companies that issue blue chip stocks are called blue chip companies.

Blue chip companies – Definition

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 having strong financial resources to fend off tough times like recession, inflation, etc., and pay regular dividends to its investors.

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 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 –

1. Safe alternative

Blue chip companies are well-established entities, and hence, their stocks are considered relatively safer.

2. Constituents of benchmark indices

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

3. 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.

4. Suitable for long-term investment

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

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.

FAQs

Is it safe to invest in only blue chip stocks?

Although blue chip companies are strong and can survive market challenges and cycles, recession and other economic downturns can hit them just as bad. Therefore, it is best to diversify your portfolio by adding shares other than blue chip stocks. These include smallcap stocks and midcap stocks. Here’s a brief guide on the market cap of stocks.

Which stocks or securities should be best considered with blue chip stocks for portfolio diversification?

You can consider investing in ETFs, securities that are traded on bourses and designed to closely match a stock market index. When picking an ETF, consider this 4-point checklist to choose the one that suits your portfolio the best. You can also use Ticketape’s Pre-built Screens to discover ETFs based on your favourite metrics. On identifying the ETFs you want to invest in, you can buy them on Tickertape itself. For greater convenience, use basket and transactions features on Tickertape to buy multiple ETFs in one go.
Other than an ETF, you can also consider adding debt instruments and fixed-income avenues such as a fixed deposit to your portfolio.

Author
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Harshit Singh

Content Strategist at Tickertape

Hey there, I’m Harshit Singh Mahey! With eight years of experience as a Content Strategist, I’ve had the pleasure of working with a Fortune 100 company and building three successful startups from the ground up.

As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.