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Blue-Chip Stocks

Pre-dominantly Largecap companies with superior track record


Synopsis

Blue-chip companies are qualified as high-quality and usually large cap companies. Typically, they have been in business for many years and are considered to be very stable with consistently growing revenues. Sound fundamental companies with a solid track record of generating revenues – hand-picked by StockAxis through its deep research, extensive experience and insights.

Objective

The objective is to identify companies which are potential leaders in their respective sectors with an aim to generate long term capital appreciation.

Stock Selection Process

StockAxis follows 4 key stages of screening potential Blue-Chip picks:

Step 1: Fundamental strength at the right ‘buy’ point

The ‘Blue-Chip’ investment team uses a number of proprietary screening tools to shortlist stocks (among the large universe of companies) that meet the parameters of having fundamental strength while being available at the right ‘buy’ point.

Step 2: In-depth fundamental research

The StockAxis ‘Blue-Chip’ research team undertakes rigorous fundamental analysis of the shortlisted potential blue-chip stocks. These potential valuation outliers must meet parameters such as earnings growth, profitability parameters, management experience and competence, return on equity benchmarks, competition analysis, etc. These companies if available at an attractive valuation with the potential to create wealth in the medium to long term, are shortlisted for further macro research i.e. industry, management strategies and reputation, track record etc.

Step 3: Macro research

Through our disciplined, research-intensive approach, we examine company and industry prospects over the intermediate and long term, working to understand and anticipate how industries and businesses will change over time.

Step 4: Stock monitoring and review

The strongest stock ideas from our extensive research process become candidates for recommendation. These stocks are actively monitored till the position is open.

Blue-Chip - Key Traits

Systematic Investment Approach
:
30 - 40% allocation in the first month and remaining gradually​,​ ​according to the market cycle over the year
Number of Recommendations in a year
:
10 - 12 stocks
Holding period
:
~12 months
Potential upside
:
15% - 20% per recommendation
StockAxis’ support services
:
  • Direct touch with Fundamental Research Analysts
  • Recommendations via sms, email & app notifications in real time
  • Research reports & updates via email
  • Dedicated relationship manager
  • Full support on your invested portfolio

FAQs

Blue-Chips are high-quality stocks of mature companies that are fundamentally stable. They are typically large-cap stocks, which are often a part of a broad-based index such as the BSE Sensex or NSE Nifty. These stocks have the potential to generate consistent revenues.

Being large-cap stocks, blue-chips bring stability and balance in a portfolio and are usually considered less risky as compared to midcaps and small-cap stocks. Adding these stocks to your portfolio will help you limit your downside risk while earning optimum returns.

Blue-Chip stocks are recommended to be held for up to 12 months.

The expected potential upside per stock is 15%-20%.

Blue-Chips are stocks of well-established and mature companies with stable businesses and revenues; hence, they are less risky making them suitable for a typical risk-averse investor.

Blue-Chips are stocks of well-established companies which are large caps. These companies usually generate optimal revenues. In order to generate higher returns, the price levels, both entry & exit, are of utmost importance. Our Blue-Chips research team undertakes rigorous fundamental analysis in order to shortlist companies that are on a growth trajectory over a 12-month period. The companies with the most attractive valuations and potential to achieve or retain market leadership positions in their respective sectors are selected in order to build wealth in a medium to long term horizon.

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