Blue chip companies are those which have made their brand slowly over time and are now a well - recognized and very well-established. They have a high market capitalization and have proved their success over time. The stocks issued by these companies are priced high compared to the mid-cap and small-cap stocks issued by other companies. These companies are known for their reliability in giving dividends. There are many blue chip companies in India as well as the world.
Not every well-established company is a blue chip company, various other factors have to be taken into consideration while deciding if that company deserves to be on this list.
Oliver Gingold, an employee at the Dow Jones (United States stock exchange), first used the term blue chip company in 1923 in an article where he described stocks of the value of $200 and more – blue chip. This term is derived from the game of Poker where red, blue, and white chips are used; blue chips being of the highest value.
Here is a list of some of the corporations that are known as blue chip stocks in India and are made for long-term investments.
1. STATE BANK OF INDIA (SBI)
2. HINDUSTAN UNILEVER LIMITED (HUL)
3. BHARTI AIRTEL
4. RELIANCE INDUSTRIES
5. TATA CONSULTANCY SERVICES (TCS)
6. OIL AND NATURAL GAS CORPORATION (ONGC)
7. HDFC BANK
8. ITC LTD.
9. INFOSYS
10. WIPRO
11. ICICI BANK
12. ASIAN PAINTS
13. NESTLE
14. SUN PHARMA
15. HCL
State Bank of India is a multinational public sector bank. The bank of Bengal (est. 1809), the Bank of Bombay (est. 1840), and the Bank of Madras (est. 1843) merged in the year 1921 to create the Imperial Bank of India (former name of SBI). Now, SBI is counted in the list of blue chip companies and has more than 22,000 branches across the country with approx. 130 branches in foreign countries.
This blue chip company of India is listed on the NSE and BSE and has a Market Cap. of approx. ₹ 480 lakh crores.
HUL is next on our list of blue chip companies in India. It was first established in 1931 with the name – Hindustan Vanaspati Manufacturing Company. When in 1956 the company amalgamated with Lever Brothers India Limited (est. 1933) and Union Traders (est. 1935) the name was changed to Hindustan Lever Limited. In May 2007, the company was renamed Hindustan Unilever Limited after getting approval from the shareholders. In the FY ending 2022, it crossed the turnover of ₹ 50,000 crores.
HUL is a Fast-Moving Consumer Goods (FMCG) company and has acquired different brands through mergers, some are – Dove, Bru, Elle 18, Kissan, Kwality Walls, Horlicks, and many others.
It has a Market Cap. of approx. ₹ 614 lakh crores (in Oct.)and is growing steadily over time.
Bharti Airtel was launched in New Delhi in the year 1995 by Sunil Bharti Mittal. With mergers and deals with services, it has been able to expand in 17 countries in South Asia and Africa. Airtel provides services like Broadband, Digital Television, and Banking and has apps like Wynk, Xtream, etc.
This blue chip company of India started 5G services in India on 1st October 2022.
In 2002 Airtel was made public and listed on BSE and NSE and as of October 2022, it has a Market Cap. of ₹ 446 lakh crores.
This blue chip company in India is popular among many people and it continues to nurture its name and bring innovations in its various fields. It was founded by Dhirubhai Ambani in 1973 and is now one of India's biggest corporations and the most reliable blue chip company in India. There are different brands under it namely, JIO, Reliance Petroleum, Trends, AJIO, Reliance Digital, etc. Reliance Industries became the first company in India to cross revenues of $100 billion.
The Market Cap. of Mukesh Ambani-led Reliance blue chip stock in India is approx. ₹ 1,638 lakh crores.
TCS is a part of Tata Sons (a corporation with various blue chip companies in India) and was founded in 1968. They provide IT, Consulting services, and solutions to business problems. TCS operates in 55 countries and is one of the most revenue-generating in the Tata Group. They are the largest employers having approx. 6 lakh employees working under it.
This blue chip company of India is listed on both NSE and BSE and has a Market Cap. approx. ₹ 1,135 lakh crores.
ONGC is a Central owned Public Sector Undertaking and a blue chip company of India under the Ministry of Petroleum and Natural Gas. It was established on 14th August 1956 with its headquarters in New Delhi.
After the Liberalization policy in 1991, In 1994 ONGC was reorganized and became a corporation from the commission under the Companies Act of 1956 and also it was now a limited company.
In 2010 the company was awarded the status of Maharatana which allows them more freedom of decision-making.
This blue chip company in India has a Market Cap. of approx. ₹ 166 lakh crores.
Next on our list of blue chip companies is Housing Development Finance Corporation (HDFC) Bank. Founded in 1994 it is one of the first banks in the private sector to receive RBI’s approval and get their banking license in January 1995. It was listed on BSE and NSE in the year 1995 too.
In 1999 Net Banking and International Debit Cards were launched and in the following year, HDFC started SMS-based mobile banking for the first time in India.
It was listed on the New York Stock Exchange (NYSE) in 2001. At present, it has 6378 branches across the world and has a Market Cap. of approx. ₹ 800 lakhs crores.
The Imperial Tobacco Company as it was known when it was founded in 1910 was renamed to the I.T.C. Ltd in 1974 where ‘I’ stands for India. Later in 2001, the name changed to ITC which is not an acronym the reason being that the company has varied products and not just tobacco.
Various known brands under ITC are Aashirvaad, Sunfeast, Bingo, Fiama, Savlon, Classmate, and many others which you may have heard of. They also have a group of hotels and resorts.
The Market Cap. of this blue chip company in India is approx. ₹ 417 Lakh Crores
Infosys was founded by 7 engineers in 1981 living in Pune, Maharashtra. In 1983 they relocated to Bengaluru, Karnataka and in 1987 they opened their first office in the United States. Infosys is the second largest IT company in India, TCS being the first.
In the year of 1993, the company was listed on the Indian Stock Market and in 1999 it became the first Indian company to be listed on NASDAQ. In 2021 they crossed the milestone of ₹ 1,00,000 crore in revenue. Infosys is known as the top employer with more than 335K + people working for them in 50+ countries.
The Market Cap. of this blue chip stock is approx. ₹ 612 lakh crores.
Formerly named Western India Vegetable Products Limited was founded in 1945 by Muhammed Hashim Premji and with his death in 1966 his son Azim Premji took over. The company was manufacturing oils and soaps but in 1979 they started the infotech division and started manufacturing minicomputers and its name changed to Wipro Limited.
In 1996 Wipro relocated its base to Bengaluru. Wipro provides services like IT Consulting and produces products related to personal care and lighting services.
Listed on BSE & NSE this blue chip company of India has a Market Cap. of approx. ₹ 224 lakh crores.
In the year 1955, with the initiative of the World Bank, ICICI was formed. In 1994 the Industrial Credit and Investment Corporation of India Bank, later renamed ICICI bank was incorporated in Vadodara. The parent company then merged with the parent bank. They have a large customer base across 17 countries and have 5,534 branches across India.
This blue chip stock of India got listed in 1997 and its Market Capitalization is approx. ₹ 616 lakh crores.
The next blue chip company in India on our list is Asian Paints. Founded by four friends in 1942 in Mumbai in the span of 25 years, had become the leading paints manufacturer in the country. The company manufactures, distributes, and sells paints, coatings, products related to home décor, etc. They are operating in 15 countries across the world and is the third-largest paint corporation in India.
The company went public in 1973 and has a Market Cap. is approx. ₹ 319 lakh crores.
13. SUN PHARMA
Sun Pharmaceuticals was founded in Vapi, Gujarat in 1983 with just 5 products that were used to treat psychiatry ailments. When they acquired Ranbaxy in 2014 it became the largest pharma company in India. At present they are ranked 4th in generic pharmaceutical companies in the world. and are operating in more than 100 countries.
This blue chip stock listed its first IPO in 1994 and has a Market Cap. is approx. ₹228 lakh crores.
HCL formerly called Hindustan Computers Limited is an IT services and consulting company that was initiated in 1976. It was founded by a group of six engineers led by Shiv Nadar and they aimed to make personal computers. At present they have offices in 52 countries and are top employers in 17 of those countries.
This blue chip company of India listed its IPO in 1999 and its Market Cap. is approx. 261 lakh crores.
Nestle India is a subsidiary of NESTLE S.A. of Switzerland. It was incorporated in India in 1956 and is headquartered in Gurugram. Their first manufacturing facility was in Moga, Punjab in 1961 and since then they have 9 manufacturing facilities in various districts of India. The main brands under Nestle India are Maggi, Nescafe, KitKat, Nestea, Milkmaid, etc.The Market Cap. of this blue chip company in India is approx. ₹ 186 Lakh crores.
Blue chip stocks are just another term for Large-cap companies most of which have varied brands under them which gives them ways in which they would earn revenue. It means that there is less market risk and if you are looking to buy a stock for a long period a blue chip company is the best place to invest.
