Is Tata Steel a blue chip stock? (2023)

Is Tata a blue-chip stock?

Many blue chip companies in India like Tata, Reliance, Infosys etc are considered as 'Too-big-to-fail' companies as they have survived and remained profitable for a very long time.

On the basis of EV/EBITDA also, Tata Steel sounds good as its EV/EBITDA is 2.87 times which is comparatively lower than JSW Steel's 5.98 times. Steel prices fell sharply in June 2022 post imposition of 15 per cent export duty but average realisation stood higher by 6-12% QoQ.

Shares of IT blue-chip companies such as Infosys, TCS (Tata Consultancy Services), HCL Technologies and Wipro were among the top gainers on the domestic bourses in Thursday's trade.

An average LIC agent issues 15 new life insurance policies a year; an agent of the nearest competitor does four. LIC chairman M.R. Kumar often makes this point to demonstrate not just his company's market dominance but also the efficiency of its agent network.

Generally, blue-chip stocks that don't pay dividends are younger firms like Amazon (NASDAQ:AMZN) that continue to seek to accelerate growth. Blue-chip stocks represent companies with household names that have proven quality, are reliable and tend to operate profitably in good times and in bad times.

Because blue-chip companies are well-established in their industries, they are also considered an effective way to invest capital at relatively low risk. Blue-chip companies provide reliable growth and dividend payments and tend to have low volatility.

Blue-chip stocks typically have solid balance sheets, steady cash flows, proven business models, and a history of increasing dividends. For that reason, investors generally consider blue-chip stocks to be among the most secure stock investments because of their track records and performance history.

Is Google a blue-chip stock?

Alphabet (GOOG, GOOGL)

It may be a relatively young company and may not pay a dividend, but it's apt to say Google parent Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is a blue-chip stock. This is due to several factors, including a deep economic moat, high operating margins, and a strong balance sheet.

Are blue-chip stocks high risk? Blue-chip stocks are not high risk, so they're popular among investors with lower risk tolerance. While blue-chip stocks aren't bulletproof, their history of resisting market downturns makes them an appealing choice for many investors.

In fact, some of the Tata group stocks figure in the list of multibagger stocks in India. Shares of Automotive Stampings, TTML and Indian Hotel are one of such Tata stocks that have at least doubled shareholders money in last one year.

The five-year average inventory days for Tata Steel is 87, while for JSW Steel is 34. This indicates JSW Steel has a better sales performance than Tata Steel.

ITC Ltd. is a blue chip company with a market valuation of Rs. 4,28,677.66 crore.

That begs the question, what are the blue-chip cryptocurrencies? Today, the blue-chip cryptocurrencies are bitcoin, ethereum, binance coin, and solana.

A bluechip stock means stock with highest value. Bluechip stocks are stocks of well-known, well-establish, profit making companies with track record of giving superior return YOY. Take an example of MRF. MRF is bluechip stock.

Why is it called blue chip?

Key Takeaways

The term "blue chip" comes from the game of poker, where blue chips are the highest value pieces. A company must be well-known, well-established, and well-capitalized to be a blue chip.

High Quality Stocks

A quality composite looks for solid businesses that produce consistent results, are very profitable, and generate high returns on their capital employed. Our quality composite combines return on equity, return on total capital, gross margin, net margin, and sales and earnings consistency.

For example, some of the most well-known blue chip stocks include Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), and IBM (NYSE: IBM). While there is no guarantee that any stock will always maintain its value, blue chip stocks tend to be more stable than other types of investments.