Authors

1. Dr. Namrataa Kapoor Kohli

Affiliation

• Associate Professor, Daly College of Business Management, Indore

Abstract

Blue-Chip stock are the shares which provides an opportunity to earn high returns on the investment.
The price of such shares is less volatile hence, movement in the price of the stock is easily
predictable. The companies holding blue-chip stock are market leaders in their respective industry as
they have already proven their positioning & business models in the market, which makes it difficult
for their competitors to encroach on their market share. The prices of the stock in Blue-Chip
companies is comparatively high and vigorous trading in Blue-chip companies' stock is profitable due
to consistent return on investments. The purpose of this study was to explore the concept of Blue-
Chip companies' stock and to analyse the performance of top 10 companies on certain financial
performance criteria's, and the data used for this purpose was secondary data collected through
various official websites. Further, it can be concluded that it is worth investing in Blue-Chip
Companies stock if an investor is looking forward to long term investment with constant growth &
returns. The drive of selecting the blue-chip stocks of market leaders was to analyse and relate their
positions with existing performance in the market in respect to their enterprise value, profitability and
low debt.

Keywords

Blue-Chip Companies, Market Capitalization, Earnings per Share, Net Profit, Return on Equity & Stock Analysis

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