Despite giving decent returns, individuals often overlook the benefits of investing in the stock market. Investing in the stock market doesn't require rocket science techniques but just a few investment strategies and research of the companies or industry's growth.
However, there is a haven of companies in which you can place your trust. Blue-chip companies are one of those. High net worth individuals (HNIs), foreign institutional investors (FIIs), domestic institutional investors (DIIs), and common shareholders typically make up the healthy mix of investors who have chosen to put money into these fundamentally sound firms.
Before jumping off to the stocks to invest in, let's understand what are blue-chip stocks.
Blue-chip stocks are the shares issued by well-established companies that are the biggest, one of the most stable, and most mature enterprises providing consistent returns.
Here are a few companies in which you may invest to have a consistent return
Reliance Industries
A Fortune 500 company and the biggest private sector company in India, Founded by Dhirubhai Ambani, Reliance Industries is a fundamentally strong company which would give you decent returns on your corpus invested.
The business recorded sales of ₹7.9 trillion for the fiscal year 2021–2022. This rise from year to year (YoY) is 47%. The company's revenues have grown at a compound annual growth rate (CAGR) of 7% over the last ten years. The same year's profit after tax (PAT) was Rs. 675.7 billion. Over the previous ten years, the corporation estimated a substantial profit CAGR of 12%.
Oil & Natural Gas Corporation (ONGC)
One of the largest oil and gas producers in India, ONGC, is a company you can invest in freely, as the company has maintained a profit CAGR of 6% for the last 10 decades. PAT for the business came in at ₹478.3 billion, up 135.1% year over year.
During the fiscal year 2021–2022, the company produced 43.4 metric tonnes of oil equivalent (MTOE) of oil and gas. ONGC generates 79% of the natural gas and 73% of the total crude oil in India. Through ONGC Videsh, a fully owned subsidiary, it manages 35 projects across 15 nations.
Tata Steel
The first fully integrated private steel firm in Asia and a major producer of steel globally, Tata Steel is a company which gave sales CAGR for the last 10 years is 6% and a healthy dividend yield of 3.9% in 2022.
The company saw an increase of ₹874.8 bn, or 55.9% YoY growth, to reach sales of ₹2.4 trillion in the fiscal year 2021–22.
The business has tried to keep up with its debt obligations. Due to this, it has produced some of its largest earnings ever. PAT for the fiscal year 2021–2022 was ₹411 billion. Profits for the company have increased at a robust 29% CAGR over the past ten years.
Tata Consultancy Services
With a presence in 55 countries and a market capitalisation of ₹12.1 trillion, TCS is the largest provider of information technology (IT) services, consulting, and business solutions in India are Tata Consultancy Services (TCS). It works under the flagship of Tata Group.
The company generated ₹1.9 tn in sales for the fiscal year 2021–22, an increase of 16.8% year over year. The company's sales increased by 292.2% during the previous ten years. The sales CAGR over ten years is 15%. According to the most recent annual report for 2021–2022, the company's market worth increased by 17.5%.
HDFC Bank
HDFC bank is one of the first banks to receive "in principle" approval from the Reserve Bank of India (RBI) to set up shop as one of India's first private sector banks.
The corporation made ₹1.4 trillion in revenue during the fiscal year 2021–2022. Over the past ten years, HDFC Bank has experienced a respectable 17% CAGR in revenue.
PAT is expected to increase 19.8% over the prior year to ₹381.5 billion for the fiscal year 2021–22. A promising 22% has been the profit CAGR during the previous ten years. The bank is consistent when it comes to delivering dividends. 16.6% was the ROE for 2021–22.
Anushka Trivedi is a freelance financial content writer. She can be reached at anushkatrivedi.com
Disclaimer: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.
