10 Best Stocks to invest in 2021 for long-term (5 to 10 years)

Top 10 stocks to invest in 2021 for long-term

What are Blue Chip companies?

Blue-chip companies are widely expanded and well-established companies with the track record of consistent and stable performance. These companies are financially strong and either debt-free or having very low debts and are efficient to survive in tough market situations.

Most of the blue-chip companies are the main player in their industry. As an example, few blue-chip companies in India are HDFC Bank, HUL, ITC, Asian Paints, Maruti Suzuki, etc.

Signature Characteristics of Blue Chip Companies

From the following points, you can figure-out the blue-chip companies:

• They are widely known and reputed companies.
• Their products/services are widely used.
• All the blue-chip companies are listed in the stock market for a very long time.
• Blue-chip companies have battled several bear phases, market crises, financial troubles, etc. and they are still performing well.
• Blue-chip companies have a strong balance sheet (excessive assets compared to liabilities) and a healthy income statement (stable revenues and profits for the last few decades).
• These companies have made a good track record of growth.
• Almost all blue-chip stocks are older companies.
• You might already know many blue-chip companies of India and also be using their products and services in regular basis.

For examples, you might be using soaps like Dove, Lux, Lifebuoy, Pears, Hamam, Liril, Rexona, washing powder like Surf Excel, Wheel, Comfort, shampoos like Clinic Plus, Sunsilk, beauty products like Fair & Lovely, Pond’s, Lakmè, Vaseline, Bru coffee, Taj Mahal tea, Lipton green tea, Brooke Bond tea, ice creams like Magnum, Cornetto, Kisan jam, Annapurna salt, toothpastes like Close up, Pepsodent, and many more. All these brands are owned by the single blue-chip company in India – Hindustan Unilever (HUL).

10 best blue-chip stocks to invest in 2021 for long-term

Reliance Industries

This company doesn't require introduction. Reliance Industries is an Indian conglomerate holding company and owns businesses in different sectors of India like energy, petrochemicals, textiles, natural resources, retail, and telecommunications.

In December 2015, Reliance Industries launched Jio (Reliance Jio Infocomm Limited) and it has 410 million subscribers as of March 2021. (Source: Business Insider)

Reliance is one of the most profitable company of India and well-performing stock for long-term as well as the 2nd largest publicly traded company in India by market capitalization. On 18th October 2007, Reliance Industries became India's first company to reach $100 billion in market capitalization. It is also the highest taxpayer in the private sector of India.

(Also Read: Short-term investment vs Long-term investment)

Hindustan Unilever (HUL)

HUL is one of the largest Fast Moving Consumer Goods (FMCG) Company in India with a legacy of over 8 decades and It is a subsidiary of Unilever, a British Dutch Company. HUL produces products in different sectors like foods, beverages, cleaning agents, personal care products, and water purifiers.

The products and brands owned by HUL are mentioned above.

HDFC Bank

HDFC Bank is leading banking and financial service company in India. It is India’s largest private sector lender by assets and has more than 84,000 employees as of March 2017.

HDFC Bank serves in different sectors like Wholesale banking, Retail banking, Treasury, Auto (car) Loans, Two Wheeler Loans, Personal Loans, Loan Against Property, and Credit Cards. It is also the largest bank in India by market capitalization and was ranked 69th in 2016 BrandZ's Top 100 Most Valuable Global Brands.

Asian Paints

Asian paint is one of the largest paint companies and manufacturers in India. Since its foundation in 1942, Asian paint has come a long way to become India’s leading as well as Asia’s 4th largest paint company, with a turnover of Rs 170.85 billion. It is working in 19 countries and has 26 paint manufacturing facilities worldwide, serves in more than 65 countries.

Asian Paints manufactures, sales and distributes paints, coatings, products related to home decor, bath fittings, and provides related services.

Tata Consultancy Services (TCS)

Tata Consultancy Services Limited (TCS) is the multinational information technology  company for IT service, consulting, and business solutions and It was founded in 1968 as a division of Tata Sons Limited. As of March 31, 2018, TCS has more than 390,000 professionals.

TCS is one of the largest Indian companies having market capitalization of Rs 722,700 Crores (as of June 2018). It is now considered as one of the most valuable global IT services brands. TCS alone generates 70% dividends from its parent company, Tata Sons.

Infosys

Infosys Limited is an Indian multinational company which offers business consulting, information technology, and outsourcing services. Its head office is in Bengaluru, Karnataka, India. Infosys has become the second-largest IT company in India by 2017 and 596th largest public company globally in terms of revenue. In 2018, its market capitalization was $37.32 billion.

Infosys' main business is software development, maintenance and independent validation services to companies engaged in the businesses of finance, insurance, manufacturing, and other domains. It had a total of 200,364 employees as of March 2017.

ITC

Indian Tobacco Company (ITC) is also one of the leading conglomerate companies in India. ITC was established in August 1910 with different name 'Imperial Tobacco Company of India Limited.' It had business in five segments: Fast-Moving Consumer Goods (FMCG), Hotels, Paperboards & Packaging, Agri-Business & Information Technology. In present, ITC is having more than 25,000 employees.

As per data of 2016, ITC Ltd sells 81% of the total cigarettes in India. Some major cigarette brands that ITC owns are Wills Navy Cut, Gold Flake Kings, Gold Flake Premium lights, Gold Flake Super Star, Insignia, India Kings, etc.

Apart from the cigarette brands, few other well-known brands of ITC are: Aashirvaad, Mint-o, Gum-o, B natural, Sunfeast, Candyman, Bingo!, Yippee!, Wills Lifestyle, John Players, Fiama Di Wills, Vivel, Essenza Di Wills, Superia, Engage, Classmate, PaperKraft, etc.

Sun Pharma

Sun Pharma was founded in 1983 with just 5 products and was selling in only two states: Bihar and West Bengal. With the time, the company started expanding its business across the country, and in present, it is biggest pharmaceutical company in India.

Currently in 2021, the company has 43 manufacturing plants with more than 36,000 employees globally and the company is also ranked 9th in the US Generic Markets. As of FY20, the company has reach of more than 100 countries across the world and is ranked 4th in global specialty generic companies. The company manufactures products in the following therapy areas: Cardiology, CNS Disorders, Pain, Ophthalmology, Diabetes, Oncology, Allergy- Asthma, Gastroenterology.

Further, Caraco Pharmaceutical Labs, Sun Pharmaceutical Industries Inc., Sun Pharma (in Bangladesh), and Alkaloids Chemical Company Exclusive Group Ltd. are the subsidiaries of the company.

ICICI Bank

ICICI Bank is one of the largest private sector banking companies. Founded in 1955.

The bank was started with World Bank's initiative of estate funding.

Eicher Motors

Eicher Motors is the Parent company of Royal Enfield and it is the well-known manufacturer of automobile and luxury motorcycles.

This is the oldest automobile brand in India (since 1901). Eicher group is engaged in designing, developing, local/international marketing and manufacturing of trucks, buses, motorcycles, automotive gears and components.

Disclaimer: Opinions & estimates are the personal views of the author. Please do your own research before investing in Stock Market.

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