A Study of Volatility of Blue Chip Companies - Mba

Certificate from the supervisor and director i
Declaration ii
Acknowledgement iii
CONTENTS
Chapters Page no.
1. Introduction…………………………………………………...1-42
2. Objective of study……………………………………………43
3. Literature Review……………………………………………44-49
4. Research Methodology…………………………………….50
4.1 Introduction…………………………………………………50
4.2 Research Design…………………………………………...50-51
4.3 Data Collection……………………………………………..51
4.4 Data Analysis……………………………………………….51-52
5. Data analysis & interpretation…………………………53
5.1 Introduction……………………………………………….53-74
5.2 Findings…………………………………………………...75-78
6. Conclusions………………………………………………......79
7. Limitations…………………………………………………...80
8. Suggestions……………………………………………….....81-83
9. Bibliography……………………………………………......84-92
Chapter 01
Introduction
“Blue Chip Companies” are the companies that have stable earnings and do not have
extensive liabilities. The stocks of these blue chip companies, referred to as ‘blue chip
stocks’, pay regular dividends even during the bad time of the organization . A group
of companies that have a stable and strong financial track record based on continuous
success in their respected field. Most of the publicly-traded blue chip companies are
included in the Dow Jones Industrial Average. Historically, they have shown to
generate growth in long-term portfolios. Blue-chip stocks are stocks of well-known
and well-established companies. A blue chip company is a company listed in the stock
exchange that has “blue chip stock”. A company can’t consider as a blue chip
company if its stock isn’t a blue chip stock, as simple as that. Blue chip stocks should
be one of your choices if you are picking the best stocks to buy now and hold forever.
Blue-chip stocks have several characteristics that benefit investors in the long-run.
The majority of investors know blue-chip stocks have stable earnings. During an
economic downturn, investors may turn to these safe havens because of their secure
nature. Blue-chip companies offer security during periods of slowed growth due to
their intelligent management teams and ability to generate stable profits. If the stock
market is experiencing a bear market, investors don't need to worry about their
investments in blue-chips because, generally, they recover.
Blue Chip Company is very strong financially, with a solid track record of producing
earnings and only a moderate amount of debt. It also has a strong name in its industry
with dominant products or services. Typically, these companies are large corporations
that have been in business for many years and are considered to be very stable. Blue
chip companies in India are considered most stables stocks for investing. When one
invests in blue chip stocks, it is considered best for long term returns. Fundamentals
of blue chip companies are very strong. Blue chip stock companies can make profits
even in bad times. Hence expert investors give special attention to these stocks. Blue
chip stocks also display excellent dividend payment history.
Blue chip stocks are seen as a less volatile investment than owning shares in
companies without blue chip status because blue chips have an institutional status in
the economy. Investors may buy blue chip companies to provide steady growth in
their portfolios. The stock price of a blue chip usually closely follows the S&P 500.
When a company can distribute dividends even in bad times, it shows how confident
they are about their cash inflows. Such assured cash-inflow, can happen only when
company is enjoying strong competitive advantage. It is this competitive advantage
that makes blue chip stocks so like-able by all investors.
Blue Chip companies are preferred because they offer a high dividend yield.
Several companies which are well known for their blue chip status offer dividend
yield which is as high as 5%.
Investing in blue chips stocks has the dual advantage of giving the investor the benefit
of high dividend yield and also capital appreciation.
Characteristics
Very Large CompanyThis is the first essential characteristic of a blue chip company.
We can use sales turnover & EBITDA as our yard stick to screen such companies
from majority. Company which is able to aggregate high sales turnover & high
EBITDA should be preferred over others.
Established Company:This is the second essential characteristic of a blue chip

company. Established company is one which is able to maintain or grow its EBITDA
over long period of time. A company which is established enjoys strong competitive
advantage. This way they can increase their profits at fast pace. Company which is
able to growth its EBITDA fast should be preferred over others.
Strong Management: This is the third essential characteristic of a blue chip company.
Strong management team is defined by how profitably the management is running the
company. Profitability of a company can be established by looking at its Margins. In
personally use EBITDA Margin and RoCE to screen blue chip stocks.
Shareholders Value: No matter how well the company is operating, but if it is not
taking care to enhance shareholders value, all efforts will go in vain. Shareholder can
benefit from stocks in only two ways. One, by market price appreciation of stock.
Second, by earning dividends. A company which is able to grow its EPS and yield
high dividends will be surely liked by all investors.
Price Valuation: Even shares like Apple, Microsoft, Berkshire Hathaway, Exxon
Mobil, TCS, RIL is not interesting for investors if it is not priced correctly. Looking at
companies PEG ratio is a must before buying its stocks. Low PEG (<1) makes it a
preferred choice for investors.
Working for blue chip companies
Blue chip companies are great employers. They are always recruiting new prospective
people, so if you want to build a career (i.e. as a manager), there firms are very good
opportunity for rocket start.
There are two advantages more:
• As international company, you have high chance to travel the world
• You can obtain employee shares depending on the firm policy
Benefits of Blue Chip Companies Stocks
There are lot of benefits you can get when buying these kind of stocks. First, security.
Of course, these stocks will give you a peace of mind for your investments because
you know these companies are doing well in their industries. You know these blue
chip companies are stable, has a strong balance sheet, has a dedicated and smart
management.
Aside from security, you will be sure that your investments are in good hands
although there is a risk involve. You are at “ease”, “calm” even when there is a
market crash because you know these companies can recover easily.
There is a high return on your investments, especially when you buy blue chip stocks
at a low price. The price of these stocks can increase eventually overtime. Let me cite
an example of blue chips stocks in the Philippines and USA that was increased its
stock price.
In USA, one great example is International Business Machines Corp. (IBM) offering
computer services.
That’s the beauty of investing in the stock market especially when you bought blue
chip stocks.
Advantages of investing in Blue Chip Stocks:
The biggest advantage is that because these companies are well managed, they are
able to weather the downturns in the economy and also take advantage of
opportunities that come up. Also, the investor is well assured that his investment in
the stocks of such companies is safe and that the promoter will not disappear
overnight.
Another advantage is that these companies are generous in their dividend policy as
also in issuing rights and bonus shares.
The third advantage is that the prices of blue chip stocks do not tend to be volatile.
Blue Chip Companies & Dividend Distribution

Blue chip companies has a typical characteristic of paying consistent dividends. Value
investors will note dividend/share growth-rate of last one decade. A company will
certainly qualify as a blue chip stock if it has managed to pay consistently high-
dividends for last 10 years. Investors whose primary focus is income generation will
buy blue chip stocks. Long term capital appreciation of blue chip stocks may not be
high, but in short term it yields high dividends. Dividend income is hard-cash earned
by shareholders. Dividend is more comforting than hypothetical capital appreciation.
Consistent dividend generating characteristic of blue chip stocks makes it very
special.
LIST TOP 20 BLUE CHIP COMPAMIES
 Tata Consultancy Services (TCS

 Coal India LTD
 Adani Port & Special Economic Zone LTD
 HDFC Bank LTD
 Infosys LTD
 Hero Motor Corp LTD
 Wipro LTD
 ICICI Bank LTD
 Oil & Natural Gas Corporation LTD
 Reliance Industries LTD
 State Bank Of India
 Tata Steel LTD
1 Tata Consultancy Services Limited (TCS)
Tata Consultancy Services Limited (TCS) is an Indian multinational information

Technology (IT) service, consulting and business solutions company Headquartered
in Mumbai, Maharashtra. It is a subsidiary of the Tata Group and operates in 46
countries. TCS is now placed among the ‘Big 4’ most valuable IT services brands
worldwide.
Tata Consultancy Services Limited was founded in 1968 by a division of Tata Sons
Limited.Its early contracts included punched card services to sister company TISCO
(now Tata Steel), working on an Inter-Branch Reconciliation System for the Central
Bank of India,[18] and providing bureau services to Unit Trust of India.
In 1980, TCS established India's first dedicated software research and development
centre, the Tata Research Development and Design Centre (TRDDC) in Pune.
On 25 August 2004, TCS became a Publicly Listed Company.It is the largest software
services exporter from India. In July 2014, it became the first Indian company with
over Rs 5 lakh crore market capitalization.
In Jan 2017, the company announced a partnership with Aurus, Inc., a global leader in
innovative payments technology, to deliver payment solutions for retailers using TCS
OmniStore, a first of its kind unified store commerce platform.
On 12 January 2017, N.Chandrashekaran was elevated as the chairman for Tata Sons .
Rajesh Gopinathan was appointed as the new MD and CEO for TCS.
Current Position:
TCS has revenue of $17.57 billion the 2016-2017 fiscal year and its Operating income
has been estimated to be 92693.00 cr. On 30 April 2017, its total assest is 16.24
billion.
2 Coal India LTD
Coal India Limited (CIL) is an Indian state-controlled coal mining company

headquartered in Kolkata, West Bengal, India. It is the largest coal producer company
in the world and contributes around 82% of the coal production in India
Coal India originally incorporated as a private limited company with the name of
‘Coal Mines Authority Limited’, under the Companies Act, 1956, as amended
(“Companies Act”) on June 14, 1973, pursuant to a shareholder’s resolution dated
October 15, 1975 and approval of the Ministry of Law, Justice and Company Affairs
dated October 21, 1975, got its name changed to ‘Coal India Limited.’ It received a
fresh certificate of incorporation consequent upon change of name dated October 21,
1975 from the Registrar of Companies, West Bengal (“RoC”). Thereafter, pursuant to
a resolution passed by the shareholders dated February 16, 2010 and approval of the
Ministry of Coal, the Company was converted into a public limited company with
effect from February 24, 2010.
As of April 1, 2010, it had total coal resources of 64,786 million tons, comprising,
pursuant of ISP classifications, Proved Geological Reserves of 52,546 million tons,
Indicated Geological Reserves of 10,298 million tons and Inferred Geological
Reserves of 1,942 million tons. As of April 1, 2010, from the total coal resources of
64,786 million tons, 30,356 million tons had been considered for mining studies
(mine planning and feasibility studies), and the remaining coal resources of 34,430
million tons had not yet been considered for such mining studies. From the 30,356
million tons of coal resources that had been considered for mining studies as of April
1, 2010, 21,754 million tons has been estimated as the Extractable Reserves.
As of March 31, 2010, the company operated 471 mines in 21 major coalfields across
eight states in India, including 163 open cast mines, 273 underground mines and 35
mixed mines, which include both open cast and underground mines.
The company also produces non–coking coal and coking coal of various grades for
diverse applications. The 11 coalfields in which it conduct its most significant mining
operations are the Korba, Singrauli, Talcher, IB Valley, Wardha Valley, Jharia, North
Karanpura, Central India Coalfields, Raniganj, Rajmahal/Deogarh and East Bokaro
coalfields.
Major Events and Milestones:
1- 1973–74 – Nationalization of coal mines, in order to provide for a higher

growth in coal sector to meet the growing energy needs of the country.
2- 1975–76 – Change of name of the company to ‘Coal India Limited’.
3- 1995–96 – Approval of a financial restructuring package by the Government,

whereby Rs 891.7 crore of interest liability was waived, Rs 904.18 crore of
plan loan repayment arrears was converted to preference equity and Rs 432.64
crore of non plan payment arrears were allowed a moratorium for repayment
and interest accrual for a period of three years, to be repaid in three equal
instalments.
4- 2001–02 – Laying down of a minimum internal rate of return of 12% at 85%

capacity utilization as cut off for the development of a project.
5- 2008–09 – Overall production of coal by the Company and its Subsidiaries,

crossed 400 milliontonnes.
Awards and Accreditations:
1- 2006–2007 – Conferred with the “Enterprise Excellence Award 2007” by the

Indian Institution of Industrial Engineering.
2- 2007–2008 – Award of ‘Mini Ratna’ status by the Department of Public
Enterprises, GoI, to CCL.
3- 2009–2010 – Award of ‘Mini Ratna’ status by the Department of Public

Enterprises, GoI, to CMPDIL– Chairman and Managing Director of the
Company, Partha S. Bhattacharyya, was conferred with the “CEO with HR
Orientation” Award by the Council of World HRD Congress at the Global HR
Excellence Awards Ceremony 2010.
4- Coal India was granted the 'Maharatna' status on 11 April, 2011 by the
Government of India.
5- 2013
–CIL bags 1st prize in the corporate offices category for best implementation
of Official Language policy of the Union by Town Official Language
Implementation Committee(TOLIC) (PSU) , Kolkata on the occasion of prize
distribution ceremony–cum–Half yearly meeting held on 30.08.2013.
–Coal India Limited (CIL), the Maharatna coal mining PSU was conferred
with two Corporate Social Responsibility Awards on 18 February 2013–the
World CSR Day.
–Coal India Limited (CIL), the Maharatna PSU, was conferred with 'Best
Geospatial Application in an Enterprise' Award, on 22 January 2013, by
Geospatial Media and Communications Pvt. Ltd.
Current Position:
On 30 March 2016, its Operating Profit amounted to Rs. 16636.05 crore.
3 Adani Port & Special Economic Zone LTD
Adani Ports and Special Economic Zone Limited (APSEZ) is India’s largest
private multi-port operator. APSEZ is a part of the Adani Group, an integrated
infrastructure corporation. The company (earlier known as Mundra Port &
Special Economic Zone Ltd) changed its name to "Adani Ports and Special
Economic Zone Limited" on January 6, 2012.
While earlier the company had one operational port at Mundra, it today
operates across eight ports in India.
Mundra Ports
AdaniHaziraPort Pvt. Ltd.
AdaniPetronet (Dahej) Port Pvt. Ltd.
AdaniMurmugaoPort Pvt. Ltd.(Goa)
AdaniVizag Coal Terminal Pvt. Ltd. In Vishakhapatnam (AP)
AdaniKandla Bulk Terminal Pvt. Ltd.
AdaniDhamra Port
AdaniEnnore Port
International Ports:
AdaniAbbot Point Terminal 1 in Australia.

Adani Abbot Point Terminal 0 Project
Dudgeon Point Coal Terminal Project
Bunyu in Indonesia.
The group is a business behemoth based in India having a global footprint

with interests in Infrastructure, Power, Global Trading, Logistics, Energy, Port
& SEZ, Mining, Oil & Gas, Agri Business, FMCG products, Real Estate
Development, Bunkering, et al.Business of the company.
The company offers following facilities:Dry Cargo Handling & StorageThe

Mundra Port has state–of–the–art facilities for the handling and warehousing
of dry cargo.
Management Info
Gautam S Adani Chairman
Gautam S Adani Managing Director
Dipti Shah Secretary
Adani Port &SEZ Ltd has revenue of about $ 1.2 billion the 2016 fiscal year.It
has Share Capital about 417 cr on 31 march 2016.
4 HDFC Bank LTD
HDFC Bank Limited is an Indian banking and financial services company

headquartered in Mumbai, Maharashtra. It has 84,325 employees and has a
presence in Bahrain, Hong Kong and Dubai. HDFC Bank is India’s first
largest private sector lender by assets. It is the largest bank in India by market
capitalization as of February 2016. It was ranked 69th in 2016 BrandZ Top
100 Most Valuable Global Brands.
In 1994 HDFC Bank was incorporated, with its registered office in Mumbai,
India. Its first corporate office and a full service branch at Sandoz House,
Worli was inaugurated by the then Union Finance Minister, Manmohan Singh.
As of December 31, 2016, the Bank’s distribution network was at 4,715
branches and 12,260 ATMs across 2,597 cities / towns .
In 2015, it was adjudged the ‘Best Managed Public Company in India’ award
by the Finance Asia Poll on Asia’s Best Companies 2015.It has revenue of
about $ $12 billion the 2016 fiscal year & total profit is US$2.0 billion.Its
Operating income has been estimated to be 30,905.12.
5 Infosys LTD
Infosys Limited (formerly Infosys Technologies Limited) is an Indian

multinational corporation that provides business consulting, information
technology and outsourcing services. It has its headquarters in Bengaluru,
India. Its market capitalisation was $34.38 Billion.
Co-founded in 1981 by 7 Engineers N. R. Narayana Murthy, NandanNilekani,
N. S. Raghavan, S. Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok
Arora after they resigned from Patni Computer Systems. The company was
incorporated as "Infosys Consultants Pvt Ltd." with a capital of 10,000 or
US$250 (equivalent to about $659 in 2016) or (6,41,800 in 2017) in Model
Colony, Pune as the registered office.
In October 1994, it made a private placement of 5,50,000 shares at 450

(equivalent to 2,100 or US$32 in 2016) each against book value of 10
(equivalent to 46 or 71¢ US in 2016) per share to Foreign Institutional
Investors (FIIs), Financial Institutions (FIs) and Corporates.
In 2014-15, it earned revenues amounting to 8.7 billion dollars and at present,

it employs 1,76,000 people around the world. RS. At the 2014 International
Ashden Awards, it claimed the Gold Award for Sustainable Buildings.
Current Position:
It has revenue of $10.208 billion the 2016-2017 fiscal year and its Operating
income has been estimated to be.2.520 billion & its Operating Profits
20,269.00 cr.
6 Hero Motor Corp LTD

Hero MotoCorp is the World's single largest two–wheeler motorcycle
company. Honda Motor Company of Japan and the Hero Group entered a joint
venture to setup Hero Honda Motors Limited in 1984. The joint venture
between India's Hero Group and Honda Motor Company, Japan has not only
created the world's single largest two wheeler company but also one of the
most successful joint ventures worldwide.
During the 80s, Hero Honda became the first company in India to prove that it
was possible to drive a vehicle without polluting the roads. The company
introduced new generation motorcycles that set industry benchmarks for fuel
thrift and low emission. A legendary 'Fill it – Shut it – Forget it' campaign
captured the imagination of commuters across India, and Hero Honda sold
millions of bikes purely on the commitment of increased mileage.
Hero Honda became the first company in the country to introduce four–stroke
motorcycles and set the standards for fuel efficiency, pollution control and
quality. It has an excellent distribution and service network spread throughout
the country.
Hero Honda bikes currently roll out from its three globally benchmarked
manufacturing facilities. Two of these are based at Dharuhera and Gurgaon in
Haryana and the third state of the art manufacturing facility was inaugurated at
Haridwar, Uttrakhand in April this year. These plants together are capable of
producing out 4.4 million units per year.
Product range of the company includes:

1 CD Dawn
2 CD Deluxe
3 Pleasure
4 Splendor +
5 Splendor NXG
6 Passion PRO
7 Passion Plus
8 Super Splendor
9 Glamour
10 Glamour PGM FI
11 Achiever
12 CBZ Extreme
13 Hunk
14 Karizma
Milestones:
1-1983
Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
Shareholders Agreement signed
2-1985
First motorcycle 'CD 100' rolled out.
3-1987
100,000th motorcycle produced.
4-1994
New motorcycle model – 'Splendor' introduced
1,000,000th motorcycle produced.
5-2006
Hero Honda is the World No. 1 for the 5th year in a row
15 million production milestone achieved.
Current Position:
Its net income is 28990 cr during 2015-2016 & sales is 6632322 units.
Chairman - 1-Dr. Brij Mohan LalMunjal (Chairman Emeritus)
2-Pawan Munjal (Chairman, MD & CEO)
7 Wipro LTD
Wipro Ltd., the flagship company of the Azim H Premji group was
incorporated in the year 1945. The company started off originally as a
manufacturer of vegetable ghee/vanaspati, refined edible oils etc. Gradually
the company has diversified into various other businesses.
Today Wipro Limited is the first PCMM Level 5 and SEI CMM Level 5
certified IT Services Company globally. Wipro provides comprehensive IT
solutions and services, including systems integration, Information Systems
outsourcing, package implementation, software application development and
maintenance, and research and development services to corporations globally.
The company was incorporated on 29 December 1945, in Amalner a small
town in Jalgaon district by Mohamed Premji as 'Western India Products', later
abbreviated to 'Wipro'. It was initially set up as a manufacturer of vegetable
and refined oils in Amalner, Maharashtra, India under the trade names of
Kisan, Sunflower and Camel.
In 1966, after Mohamed Premji’s death, his son AzimPremji returned home
from Stanford University and took over Wipro as its chairman at the age of 21.
Products and services offered by the company:
1-Wipro was having its presence across various verticals viz;(it decided to
shut its hardware business in 2013)
2-Wipro Personal Computing Products
3-Enterprise Products
4- Software Products and Licences.
Current Position:
It has revenue ofUS$7.735 billion on 31march 2016 fiscal year and its
Operating income has been estimated to be44,684.60 cr& its Operating
Profits11,878.70 cr.
8 Reliance Industries LTD

Reliance Industries Limited (RIL) is an Indian conglomerate holding company
headquartered in Mumbai, Maharashtra, India.Reliance ownsbusinesses across
India engaged in energy, petrochemicals, textiles, natural resources, retail, and
telecommunications. Reliance is the third most profitable company in India,
the second-largest publicly traded company in India by market capitalization,
and the second largest company in India as measured by revenue after the
government-controlled Indian Oil Corporation.The company is ranked 215th
on the Fortune Global 500 list of the world's biggest corporations as of 2016.
It is ranked 8th among the Top 250 Global Energy Companies by Platts as of
2016.
The company was co-founded by DhirubhaiAmbani and his brother

ChampaklalDamani in 1960s as Reliance Commercial Corporation.In 1965,
the partnership ended and Dhirubhai continued the polyester business of the
firm.
Reliance Industries Limited operates world–class manufacturing facilities

across the country at Allahabad, Barabanki, Dahej, Dhenkanal, Hazira,
Hoshiarpur, Jamnagar, Kurkumbh, Nagothane, Nagpur, Naroda, Patalganga,
Silvassa and Vadodara.
The company works under different business segments:
1-Exploration and Production

2-Petroleum Refining and Marketing
3-Petrochemicals
4-Textiles
5-Retail.
Products and brands offered by the company:
1-Crude oil and natural gas

2-LPG
3-Propylene
4-Naphtha
5-Gasoline
6-Jet/Aviation Turbine Fuel
7-Superior Kerosene Oil
8-High Speed Diesel
9-Sulphur
10-Petroleum Coke.
Chairman: MukeshAmbani
(Chairman and MD)
Current Position:
It has revenue of US$51 billion on 31march 2016-2017 fiscal year and its
Operating income has been estimated to be US$8.6 billion & its ProfitsUS$4.6
billion.
9 State Bank of India

State Bank of India (SBI) is an Indian multinational, public sector banking and
financial services company. It is a government-owned corporation with its
headquarters in Mumbai, Maharashtra.
The origin of the State Bank of India goes back to the first decade of the
nineteenth century with the establishment of the Bank of Calcutta in 1806 in
Calcutta. Three years later the bank received its charter and was redesigned as
the Bank of Bengal (2 January 1809).
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve
Bank of India, which is India's central bank, acquired a controlling interest in
the Imperial Bank of India. On 1 July 1955, the imperial Bank of India became
the State Bank of India. In 2008, the government took over the stake held by
the Reserve Bank of India.
State Bank of India is a banking behemoth and has 20% market share in
deposits and loans among Indian commercial banks.
SBI entered the UK's home loan market, the bank started with mortgages for
landlords, best known as buy–to–let mortgages, with amounts ranging from
£50,000 to £1.5 million, and loan to value of ratios of up to 60 per cent.
In April 2014 State Bank of India launched three digital banking facilities for
the convenience of SBI customers. Two at the customer’s door step using
TAB banking – one for customers opening Savings Bank accounts and another
for Housing Loan applicants. The third is e–KYC (Know your Customer).
On 01.04.2017, State Bank of India, which is India's large Bank merged five
of its Associate Banks (State Bank of Bikaner & Jaipur, State Bank of
Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of
Travancore) and BharatiyaMahila Bank with itself. This is the first ever large
scale consolidation in the Indian Banking Industry. With the merger, State
Bank of India will enter the league of top 50 global banks with a balance sheet
size of 41 trillion, 277,000 employees, 500 million customers, and more than
22,500 branches and 58,000 ATMs. SBI's market share will increase to 22
percent from 17 per cent. It has 198 offices in 37 countries; 301
correspondents in 72 countries .The company is ranked 232nd on the Fortune
Global 500 list of the world's biggest corporations as of 2016.
Services offered by the company:

1-NRI Services
2-Personal Banking
3-International Banking
4-Agriculture / Rural
5-Corporate Banking
6-SME
7-Government Business
8- Domestic Treasury.
Chairman:Arundhati Bhattacharya(Chairman)
Dinesh Kumar Khara(MD)
Current Position:It has revenue of US$42 billion on 31march 2016 and its
Operating income has been estimated to be US$6.7 billion & its Profits
US$1.5 billion.
10-Oil & Natural Gas Corporation LTD
Oil and Natural Gas Corporation Limited (ONGC) is an Indian multinational
oil and gas company headquartered in Dehradun, Uttarakhand, India. It is a
Public Sector Undertaking (PSU) of the Government of India, under the
administrative control of the Ministry of Petroleum and Natural Gas. It is
India's largest oil and gas exploration and production company. It produces
around 77% of India's crude oil (equivalent to around 30% of the country's
total demand) and around 62% of its natural gas.
Oil and Natural Gas Corporation was established in 1959 and was
incorporated on March 26, 1993 under the companies Act 1956 after
converting a statutory commission namely Oil and Natural Gas Commission
into a public limited company.
The liberalized economic policy, adopted by the Government of India in July
1991, sought to deregulate and de–license the core sectors (including
petroleum sector) with partial disinvestments of government equity in Public
Sector Undertakings and other measures. As a consequence thereof, ONGC
was re–organized as a limited Company under the Company's Act, 1956 in
February 1994.
As per Platts Top 250 Global Energy Rankings, it occupies the 21st rank. On
11 February 2014, ONGC was awarded the ‘Best Enterprise Award’ at the
WIPS Award of Excellence in the Maharatna and Navaratna categories.
Products and services:

ONGC supplies crude oil, natural gas, and value-added products to major
Indian oil and gas refining and marketing companies. It primary products
crude oil and natural gas are for Indian market.
Chairman: Dinesh Kumar Sarraf

(Chairman & MD)
Current Position:
It has revenue of US$22 billion on 31march 2016 & its Profits US$2.2 billion.
11 ICICI Bank LTD

ICICI Bank (Industrial Credit and Investment Corporation of India) is an
Indian multinational banking and financial services company headquartered in
Mumbai, Maharashtra, India, with its registered office in Vadodara.. In 2014,
it was the second largest bank in India in terms of assets and third in term of
market capitalisation. It offers a wide range of banking products and financial
services for corporate and retail customers through a variety of delivery
channels and specialised subsidiaries in the areas of investment banking, life,
non-life insurance, venture capital and asset management. The bank has a
network of 4,450 branches and 14,404 ATMs in India, and has a presence in
19 countries including India.
In 2000, ICICI Bank became the first Indian bank to list on the New York
Stock Exchange with its five million American depository shares issue
generating a demand book 13 times the offer size.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved
the merger of ICICI and two of its wholly owned retail finance subsidiaries,
ICICI Personal Financial Services Limited and ICICI Capital Services
Limited, with ICICI Bank. The merger was approved by shareholders of ICICI
and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad
in March 2002 and by the High Court of Judicature at Mumbai and the
Reserve Bank of India in April 2002.
Services offered by the company:
1-Deposits
2-Loans
3-Cards
4-Investments & Insurance
5-Demat.
NRI Services
1-Money Transfer
2-Bank Accounts
3-Investment
4-Home Loans
5-Insurance
6 - Loans against FD.
As of 31 March 2014, its assets were worth RS. Rs. 5946.42 billion. In the
same year, its profit after paying tax amounted to Rs. 98.10 billion.
Awards:
1-In 2015, the Asian Banker adjudged ICICI Bank to be the ‘Best Retail Bank
in India’.
2-Gold awards in the ‘Bank’ and ‘Credit card issuing Bank’ segments under
Finance category in the Reader’s Digest Trusted Brand 2016 Survey.
3-First in The Brand Trust Report, India Study 2016 by Trust Research
Advisory under the ‘Banking Financial Services and Insurance’ category.
4-‘Best Retail Bank in India’ at the Asian Banker International Excellence in
Retail Financial Services Awards 2016. ICICI Bank has won this award three
years in a row.
5-Winner at the ‘Global Safety Awards 2016’ organised by the Energy and
Environment Foundation. This award is sponsored by Ministry of Petroleum
& Natural Gas and Ministry of Coal, Government of India.
6-Best Local Trade Finance Bank in India’ at Global Trade Review Asia
Leaders in Trade Awards 2015.
Chairman: Mr. M. K. Sharma (Chairman)

Mrs. ChandaKochhar (MD & CEO)
Current Position:It has revenue of US$10.3 billion on 31march 2016 and its
Operating income has been estimated to beUS$3.6 billion & its Profits US$1.5
billion.
12 Tata Steel LTD
Tata Steel Limited (formerly Tata Iron and Steel Company Limited (TISCO))
is an Indian multinational steel-making company headquartered in Mumbai,
Maharashtra, India, and a subsidiary of the Tata Group. It was the 10th largest
steel producing company in the world in 2015, with an annual crude steel
capacity of 25.3 million tonnes, and the second largest steel company in India
(measured by domestic production) with an annual capacity of 9.7 million
tonnes after SAIL.
Tata Iron and Steel Company was founded by Jamshetji Tata and established
by Dorabji Tata on 26 August 1907, as part of his father Jamshetji's Tata
Group.By 1939 it operated the largest steel plant in the British Empire. The
company launched a major modernization and expansion program in 1951.
Later in 1958, the program was upgraded to 2 million metric tonnes per annum
(MTPA) project. By 1970, the company employed around 40,000 people at
Jamshedpur, with a further 20,000 in the neighbouring coal mines.
Business divisions of the company:

Bearings Division : Manufactures ball bearings, double row self–aligning
bearings, magneto bearings, clutch release bearings and tapered roller bearings
for two wheelers, fans, water pumps, etc.
Ferro Alloys and Minerals Division : Operates chrome mines and has units for
making ferro chrome and ferro manganese. It is one of the largest players in
the global ferro chrome market.
Agrico Division :Tata Agrico is the first organized manufacturer in India of

hand tools and implements for application in agriculture.
Tata Growth Shop (TGS) :Has designed, developed, manufactured, erected

and commissioned thousands of tonnes of equipment ranging from overhead
cranes to high precision components, including a rocket launch pad for the
Indian Space and Research Organization.
Tubes Division :The biggest steel tube manufacturer with the largest market
share in India, it aspires to strengthen its market presence by expanding and
modernizing its commercial and precision tube manufacturing capacity.
Wire Division : A pioneer in the manufacture of steel wires in India, it

produces coated and uncoated wires, branded as Tata Wiron. The division also
operates a wholly owned subsidiary in Sri Lanka.
Achievements:
1-2014
Tata Steel awarded the prestigious BML Munjal Award
Tata Steel conferred the prestigious Indian MAKE Award 2013
2-2013
Tata Steel granted Core Supplier status by PSA Peugeot Citroën
CII–ITC Sustainability Prize 2012 for Tata Steel.
Chairman: NatarajanChandrasekaran (Chairman)

T. V. Narendran (Managing Director).
Current Position:
It has revenue ofUS$18 billion on 31march 2016 and its Operating income has
been estimated to beUS$1.2 billion & it Profits US$−490 million.
CHAPTER TWO
Objectives of the Study:

The objectives of this study is to do an analysis of top blue chip companies in
Indian context in terms of market capitalization, Earning per share, annual
dividend payout, Cash Flows and returns. This project aimed the researcher a
lot in putting theoretical knowledge that the researcher had gained through his
academics, into practical and also the researcher has gained theoretical as well
as practical knowledge about share market and the activities undertaken in a
share broking company.
The main objectives of this study are
1- To analyze the stock performance of top Indian Blue chip companies in

terms of Market capitalization, EPS, Annual dividend payout and Total
Trailing returns.
2- To study the strength of top blue chips company stocks.
3- To know how EPS history of Blue Chip Company is different for a normal
company.
CHAPTER THREE
LITERATURE REVIEW
Hamsalakshmi and Manickam (2004) has made “A study on financial
performance analysis of selected software companies” The study has been
focused on examining the structure of liquidity position, leverage and
profitability. The study has revealed a favorable liquidity position and working
capital position. The study has also pointed out that the companies rely more
on internal financing and the overall profitability has been increasing at a
moderate rate.
Shurveer S. Bhanawat (2011) in this study “Impact of Financial Crisis on the

Financial Performance of “Indian Automobile Industry”. In this study the
impact of financial crisis on Indian Automobile Industries with the help of
statistical significant techniques is analysed. On the analyses of the t-Test and
Analysis of Variance, it is found that the impact is not significant which
proves that though the global economies are impacted by recession, the Indian
Automobile Sector showed resilience and was not affected significantly by the
recession. It goes to show that the Indian automobile market, though impacted
by export income, did not crumble under recession, as the volumes were
significantly met by local demand, thereby proving that the Indian economy is
a self-sustaining economy, not significantly impacted by the financial crisis.
Fama and French (1992) show that value stocks (high book/market)
significantly outperform
growth stocks (low book/market). The average return of the highest
book/market decile is
reported go be one percent per month higher than the average return for the
lowest.
K.Sivakumar. '"1994) disclosed new parameters that will help investors

identify the best company to invest in. He opined that Economic Value Added
(EVA) is more powerful than other Conventional tools for investment decision
making like EPS and price Earnings ratio. EVA looks at how capital raised by
the company from all ources has been put to use. Higher the EVA, higher the
returns to the shareholder. A company with a higher EVA is likely to show a
higher increase in the market price of its shares. To be effective in comparing
companies, he suggested that EVA per share (EVAPS) must be calculated. It
indicates the super profit per share that is available to the investor. The higher
the EVAPS, the higher is the likely appreciation in the value in future. He also
revealed a startling result of EVA calculation of companies in which
200 companies show a negative value addition that includes some blue chip
companies in the Indian Stock Market.
Report by the I.ES47 (The Investigation Enforcement and Surveillance)

Department of the SEBI (2000) states that in spite of some instances of high
volatility, the Indian markets have remained stable and safe. It is observed that
the Indian securities market has been witnessing a downtrend and instances of
volatility. But the downtrend and the fall in the sensex are in consonance with
the fall in the indices of the major capital markets around the world.
According to the Report, the downtrend in the sensex could be attributed to-
I. Rise in the oil prices in the global markets leading to increase in oil pool
deficit.
2. Downward pressure on the Indian Rupee.
3. Fears of economic slowdown as indicated by the key economy indicators.
4. Revival of competitive economies such as Malaysia and possibility of
hifting some foreign investments to these countries etc. The report concluded
that the risk containment measures along with the proactive measures taken by
the SEBI from time to time has ensured that the level of safety remained
adequate and there wereno constraints on the settlement process.
Madhvi (2014) made an attempt to analyze stock market conditions with all related
measure to check on risk management tools with their respective return. Secondary
sources like current research studies, Reports of BSE, NSE was used further to
exploring some new highlights. It was concluded that stock market is very volatile
and fluctuating with respect to risk and return relationship. In stock market
incomplete information leads to bad return whereas perfection and alertness leads to
good and stable return. Future of stock market is found very bright in upcoming years
due to competitive strength.
Rajput &Kakkar (2012) interpret the volatility as a measure of

difference between an asset current prices and its average past prices. Volatility is
standard deviation of returns, which
measure the distribution of returns from the average. If there is wide range of
fluctuations in the prices over short time
periods, it has high volatility and has low volatility if the price moves slowly.
CHAPTER FOUR
Research Methodology:
4.1 Introduction
This chapter provides a discussion of the outline of the research methodology that was
used in this study. It focuses on the research design, sampling techniques, data
collection methods and data analysis methods that was used in this study.
The study was on event study methodology where the effect of stock return on
volatility blue chip companieswere assessed for a period of 181 days before and after
the effective date of the stock return. The study covered a period of five years from
2011-2016.
4.2 Research Design:

The research design employed in this study was event study research design method
that aimed at exploring the dispersion of returns or risk or uncertainty of stock of Blue
chip companies listed in the Indian stock exchange.This method was preferred
because it allowed for prudent comparison of the stock market reaction to an event by
looking at such performance on either side of the event; that is, before and after the
event.
4.3 Data Collection

The main sources of data for the present study used are secondary in nature.
Secondary data consist of information that already exists somewhere and have been
collected for specific purpose in the study. Secondary data have been obtained from
the official websites of the selected blue chip companies and stock exchange
websites.The specific data that was collected was data on volatility for the respective
companies for a period of five years 2011-2016.
4.4 Data Analysis

The data collected from the secondary sources was systematically organized in
a manner to facilitate analysis. Data analysis involved preparation of the
collected data, coding, editing and cleaning of data so as to facilitate
processing using SPSS package.The research covered a period of 5 yearsso as
to examine the changes in stock prices or return over this period of 5
years.The period of 5 years was adequately lengthy for the estimation of the
normal return of the model with better accuracy, and it was considered long
enough to cover the volatility.
CHAPTER FIVE
DATA ANALYSIS, RESULTS AND DISCUSSION
5.1 Introduction
This chapter presents the data findings on the volatility of blue chip companies listed
at the Indian stock Exchange by analyzing the earning per share,market capitalization,
Annual dividend payout, return and the performance of stock. These data were
collected from the NSE offices& official Website and analyzed using Excel and SPSS
(version 17).
1 Tata Consultancy Services Limited (TCS)
(CR)
YEARS EPS Market Annual Return on Cash
capitalization dividend investment Flows
2011-2012 53.07 228,760 5686.82 707.3824 1993.49
2012-2013 70.99 310,000 5024.06 1034.916 1841.36
2013-2014 97.67 460,000 7058.12 3203.517 1467.86
2014-2015 111.87 542,000 18088 862.8321 1861.89
2015-2016 123.3 529,000 10206 11069.57 6292.06
1-EPS: Earnings per share (EPS) is the portion of a company's profit allocated to each
outstanding share of common stock. Earnings per share serves as an indicator of a
company's profitability. During the year 2011-2012 the Company consolidated
earnings per share
(EPS) were ` 53.07 in fiscal 2012 (` 46.27 in fiscal 2011)
– a growth of 14.70%. During 2012-2013 it increase from 53.07 to 70.99 a growth of
33.76% which reflect that the company earn profit higher than previous year & in
next year EPS is 97.67 with a growth of 37.58% which is higher than previous .Next
year it come 111.87 with a growth of 14.53% which is 23.05% less than previous year
.In 2016 it was increase upto 123.3 with a growth of 10.21% but fall in
encountered.This show that in starting company earn profitability at high rate but
atlast company earn profitability at lower rate than starting.
2 Market capitalization:Market capitalization refers the total dollar market value of a

company's outstanding shares. In year 2012 the market capitalization of tcs is 228,760
cr while in next year it reach 310,000 cr which is 81,240 cr more than previous. At the
last of 2014 it reach 460,000 cr which is 150000 cr more than 2013.In 2015 market
capitalization reach 542,000 cr with a growth of 82000 cr which lower than previous.
In the end of 2016 it reach 529,000 cr . This show that at the staring market value of
the company is increase with higher rate but at the end of 2016 the company loss their
market value which is 13000 cr.
3 Annual dividend:A dividend paid on each share held in a company for one financial
year, or the total amount that the company pays out in dividends in that year. In 2011
to 2012 the company payout 5686.82cr .In next year the company payout 5024.06cr
which is 662.76cr lesser than previous one. In 2013 to 2015 it increase and reach
18088cr but in 2016 it goes down from 18088cr to 10206cr. This shows that some
time company earn profit at higher rate & some time at lower rate but company earn
profit regularly which reduce the volatility of company.
4 Return on investment:ROI measures the amount of return on an investment relative
to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is
divided by the cost of the investment, and the result is expressed as a percentage or a
ratio. At the end of 2012 the Return on investment of the company is 707.3824cr.
During the period 2012 to 2013 Return on investment reached at 1034.916cr which
shows company profitability in term of return but at the end of 2014 it fall down
suddenly & reached on 862.8321cr & next year one again it reach on the top of
previously years at11069.57cr. This shows that in the 2015 the company not get
higher return but at the end of 2016 recover all return.
5 Cash Flows:Cash flow is the net amount of cash and cash-equivalents moving into
and out of a business. During the financial year 2011 to 2012 the cash flow of the
company is 1993.49cr.In the end of 2013 the cash flow fall down from 1993.49cr to
1841.36cr which show the company liquid assets are decreasing but at the end of
2015 it recover & end of 2016 company cash flow reached 6292.06cr which is higher
in last five year. This shows that the company liquid assets gone decreased but end
2015 recover the cash flow and shows positive impact on liquid assets& company is
ready to face financial challenges.
2Infosys LTD
(CR)

2011-2012 145.55 1,64,592 2,699 304.6107 19557
2012-2013 164.87 165917 2412 1500.021 20401
2013-2014 186.35 188510 3618 2315.967 24100
2014-2015 54.13 254771 5111 2419.961 27722
2015-2016 59.84 279837 5576 3726.918 29176
1-EPS: Earnings per share (EPS) is the portion of a company's profit allocated to
each outstanding share of common stock. Earnings per share serves as an indicator of
a company's profitability. During the year 2011-2012 the Company consolidated
earnings per share (EPS) were `145.55 in fiscal 2012 (` 112.26 in fiscal 2011) – a
growth of 29.65%. During 2012-2013 it increase from 145.55 to 164.87 a growth of
13.97% which reflect that the company earn profit lower than previous year & in next
year EPS is 186.35 with a growth of13.02 % which is lower than previous .Next year
it come 54.13 .In 2016 it was increase upto 59.84 with a growth of 10.54% but fall in
encountered.This show that in starting company earn profitability at high rate but
atlast company earn profitability at lower rate than starting.

company's outstanding shares. In year 2012 the market capitalization of infosys is
1,64,592cr while in next year it reach165917cr which is 1325 cr more than previous.
At the last of 2014 it reach188510cr which is 22593cr more than 2013.In 2015 market
capitalization reach 254771cr with a growth of 66261cr which higher than previous.
In the end of 2016 it reach 279837cr . This show that at the staring market value of
the company is increase with lower rate but at the end of 2016 the company cover
same market value as at starting.
3 Annual dividend:A dividend paid on each share held in a company for one financial
to 2012 the company payout 2,699cr.In next year the company payout 2412cr which
is 287cr lesser than previous one. In 2013 to 2015 it increase and reach 5111cr & in
2016 it goes up from 5111cr to 5576cr. This shows that some time company earn
profit at higher rate & some time at lower rate but company earn profit regularly
which reduce the volatility of company.

shows company profitability in term of return but at the end of 2015 it increase at
lower rate & reached on 2419.961cr & next year it reach on the top of five years at
3726.918cr. This shows that in the 2015 the company not get higher rate of return but
at the end of 2016 get higher rate of return.
company is 19557cr.In the end of 2013 the cash flow increase from 19557cr to
20401cr which show the company liquid assets are increasing. At the end of 2015 it
reach 27722cr & end of 2016 company cash flow reached 29176cr which is higher in
last five year. This shows that the company liquid assets are increasing and shows
positive impact on liquid assets & company is ready to face financial challenges.
3Wipro LTD
(MN)

capitalization(BN) dividend investment Flows
2011-2012 21.29 1082 8,010 13614.72 77,666
2012-2013 24.95 1075 7,972 20802.36 84,838
2013-2014 31.66 1340 11,729 22152.57 114,201
2014-2015 35.13 1,553 12,430 18792.84 158,940
2015-2016 36.12 1,394 18,859 40832.41 99,049
1-EPS:Earnings per share (EPS) is the portion of a company's profit allocated to each
earnings per share (EPS) were `21.29 in fiscal 2012 (`20.36in fiscal 2011) – a growth
of 04.57%. During 2012-2013 it increase 21.29 from to24.95 a growth of 17.19%
which reflect that the company earn profit higher than previous year & in next year
EPS is 31.66with a growth of 26.89% which is higher than previous .Next year it
come 35.13 with a growth of 10.96% which is 15.93% less than previous year .In
2016 it was increase upto 36.12with a growth of 02,81% but fall in encountered.This
show that in starting company earn profitability at high rate but atlast company earn
profitability at lower rate than starting.

company's outstanding shares. In year 2012 the market capitalization of wipro is
1082mn while in next year it reach 1075mn which is 7mn less than previous. At the
last of 2014 it reach1340mn which is 265mn more than 2013.In 2015 market
capitalization reach 1,553mn with a growth of 213mn which lower than previous. In
the end of 2016 it reach 1,394mn. This show that at the staring market value of the
company is increase with lower rate but at the end of 2016 the company market value
fall down.
3 Annual dividend: A dividend paid on each share held in a company for one financial
to 2012 the company payout 8,010mn. In next year the company payout7, 972mn
which is 38mn lesser than previous one. In 2013 to 2015 it increase and reach
12,430mn & in 2016 it goes up from 12,430 to 18,859mn. This shows that some time
company earn profit at higher rate & some time at lower rate but company earn profit
regularly which reduce the volatility of company.

ratio. At the end of 2012 the Return on investment of the company is13614.72mn.
During the period 2012 to 2013 Return on investment reached at 20802.36mn which
shows company profitability in term of return but at the end of 2015 it fall down
suddenly & reached on18792.84mn & next year one again it reach on the top of
previously years at40832.41 . This shows that in the 2015 the company not get higher
return but at the end of 2016 recover all return.
company is 77,666mn.In the end of 2013 the cash flow increase from 77,666mn to
84,838mn which show the company liquid assets are increasing but at the end of
2016 reach at 99,049mn which is lowest in last five year. This shows that the
company liquid assets gone increase but end 2016 the cash flow decrease and shows
negative impact on liquid assets & company face difficulty to face the financial
challenges.
4Reliance Industries LTD
(CR)

2011-2012 61.2 244,757 2,531 4512.81 40,731
2012-2013 64.8 249,802 2,643 4455.883 50,456
2013-2014 68.0 3,00,405 2,793 6149.604 37,984
2014-2015 80.1 2,66,847 2,944 7077.158 12,545
2015-2016 93.8 3,38,703 3,095 7259.845 11,197
1-EPS:Earnings per share (EPS) is the portion of a company's profit allocated to each
earnings per share (EPS) were `61.2 in fiscal 2012 (`62.0 in fiscal 2011) – a fall down
of 0.8%. During 2012-2013 it increase from 61.2 to 64.8 a growth of 5.88% which
reflect that the company earn profit higher than previous year & in next year EPS is
68.0 with a growth of 4.93% which is lower than previous .Next year it come 80.1
with a growth of 17.79% which is 12.86% high than previous year .In 2016 it was
increase upto 93.8 with a growth of 17.10% but fall in encountered.This show that in
starting company earn profitability at lower rate but atlast company earn profitability
at higher rate than starting.

company's outstanding shares. In year 2012 the market capitalization of Reliance
Industries LTD is 244,757cr while in next year it reach 249,802cr which is 5045 more
than previous. At the last of 2014 it reach 3,00,405cr which is 50603cr more than
2013.In 2015 market capitalization go fall down 2,66,847cr with a fall of 33558cr
which lower than previous. In the end of 2016 it reach 3, 38,703cr. This show that at
the staring market value of the company is increase with neither higher nor lower rate
but at the end of 2016 the company market value increase with higher rate.
to 2012 the company payout 2,531cr.In next year the company payout 2,643cr which
is 122cr more than previous one. In 2013 to 2015 it increase and reach 2,944cr & in
2016 it goes up from 2,944cr to 3,095cr. This shows that company earn profit
regularly at higher rate which reduce the volatility of company.

shows company less profitability in term of return but at the end of 2015 it increase at
higher rate & reached on 7077.158cr & next year it reach on the top of five years at
7259.845cr. This shows that in the 2013 the company not get higher rate of return but
at the end of 2016 get higher rate of return.
company is 40,731cr.In the end of 2013 the cash flow increase from 40,731cr to
50,456cr which show the company liquid assets are increasing but at the end of 2016
reach at 11,197cr which is lowest in last five year. This shows that the company
liquid assets gone increase but end 2016 the cash flow decrease and shows negative
impact on liquid assets & company face difficulty to face the financial challenges.
5HeroMotor Corp LTD
(CR)

2011-2012 119.1 41041 2,250 1950.416 33.73
2012-2013 106.1 30792 3,000 1456.78 134.95
2013-2014 105.6 45,425 3,250 1597.211 119.83
2014-2015 119.5 52,714 3000 1228.689 215.78
2015-2016 156.9 58,823 3,600 1820.374 179.09
1-EPS: Earnings per share (EPS) is the portion of a company's profit allocated to each
earnings per share (EPS) were `119.1 in fiscal 2012 (` 96.5 in fiscal 2011) – a growth
of 23.41%. During 2012-2013 it Decrease from 119.1 to 106.1 a fall of 11.02% which
reflect that the company earn per share is lower than previous year & in next year EPS
is 105.6 with a fall of0.57 % which is lower than previous .Next year it come 119.5
.In 2016 it was increase upto 156.9 with a growth of 31.29% .This show that in
starting company earn profitability at lower rate but atlast company earn profitability
at higher rate than starting.
2 Market capitalization:
Market capitalization refers the total dollar market value of a company's outstanding
shares. In year 2012 the market capitalization ofHero Motor Corp is 41041CR while
in next year it reach 30792CR which is 10249cr less than previous. At the last of 2014
it reach 45,425cr which is 14633cr more than 2013.In 2015 market capitalization
reach 52,714cr with a growth of 7289cr which lower than previous. In the end of 2016
it reach 58,823cr. This show that at the staring market value of the company is goes
down but at the end of 2016 the company market value reach on the top last five year.
to 2012 the company payout 2,250cr.In next year the company payout 3,000cr which
is 750cr more than previous one. In 2013 to 2015 it goes down and reach 3000cr & in
2016 it goes up from 3000cr to 3600cr. This shows that company earn profit
regularly at higher rate during 2012 to 2014 but end of 2015 it goes down which
increase the volatility of company.

shows company less profitability in term of return but at the end of 2016 it increase&
reached on 1820.374cr. This shows that the company return were fluctuate at regular
interval but at the end of 2016 it get on their way & start earning higher rate of return.
5 Cash Flows: Cash flow is the net amount of cash and cash-equivalents moving into
company is 33.73cr.In the end of 2013 the cash flow increase from 33.73cr to
134.95cr which show the company liquid assets are increasing & at the end of 2015
reach at 215.78cr which is highest in last five year & end of 2016 it goes down. This
shows that the company liquid assets gone increase but end 2016 the cash flow
decrease and shows negative impact on liquid assets & company face difficulty to
face the financial challengesat regular interval.
-How EPS history of Blue Chip Company is different for a normal company.
Companies which has managed to pay dividends, even in bad times, are considered
great by investors. People must look into the profit and loss accounts (P&L a/c) of
dividend paying companies. In P&L a/c we should check the historic Earning Per
Share (EPS). Net Profit of company (PAT) divided by total shares outstanding in
market is equal to EPS. A positive EPS figures declared in P&L a/c confirms that the
company is really making profits. There are companies who fake by distributing
dividends. Shareholders receives dividends and they falsely assume that companies
fundamentals are good. But when one checks the history of EPS (last five years) the
real fact can be negative EPS growth. So, while developing a list of blue chip
companies in India, one should not only look at dividend disbursement patters but
also check EPS growth. We do not want to buy stocks of companies whose EPS is
only decreasing.
A continuously improving EPS is what we would like to see in the profit and loss
accounts of companies.
5.2 Findings
1 Tata Consultancy Services have also been showing a growth in their earning per
share but at a slow rate in the end.
2Infosys shows a gradual increase in start but in end decline in its EPS.
3 Wipro and Reliance industries show a similar trend of movement in its EPS & Hero
motor crop declinedin 2014 and rose thereafter.
4 Infosys and Wipro showed an decrease in their Dividend payout in 2013 & an
increase in their dividend payout through 2014 to 2016.
5Tata Consultancy Services showed decrease in their Dividend payout in 2013 &2016
but showed increase in 2014& 2015.
6 Hero motor crop showed an decrease in their Dividend payout in 2013, 14&16 and a
slight fall in 2015.
7 Hero motor crop had a huge Return on Investment in the year 2012 after which it
kept on decline at a high rate& after 2015 it start increasing. It do not show much
deviation from their usual returns.
8 Infosys had a huge Return on Investment in the year 2016 & it never show decrease
in return.
9Tata Consultancy Services showed increase in return on investment in the years

2013,14&16 but a slight fall in 2015.
10 Reliance Industries showed decrease in return on investment in the yeart 2013 after
whichit kept on increasing at a high rate.
11Tata Consultancy Services showed increase in Market capitalization till 2015 and
aslight fall in 2016.
12Wipro showed increase in Market capitalization in year 2014&2015 and a slight

fall in 2013&2016.
13 Reliance Industries showedincrease in Market capitalization in 2013,14&16 and a

slight fall in 2015.
14Hero motor crop showeda slight fall in 2013 andincrease in Market capitalization
till 2016.
15 Infosys showed increase in Market capitalization till 2016.
16 Tata Consultancy Services showed slight fall in cash flow in 2013 andshowed
increase till 2016.
17 Infosys showed increase in cash flow till 2016.
18Wipro showed increase in cash flow till 2015 and a slight fall in 2016.
19Reliance Industries showed increase in cash flow in 2013 and a fall till 2016.
20 Hero motor crop showed increase in cash flow in 2013 & 2015 and aslight fall in
2014 & 2016.
CHAPTER SIX
Conclusion
After the study, it was concluded that Blue chip companies have high market
capitalization, strong cash flows, steady dividend payments, stability of earnings, long
history of earnings, high earning per share, and are less volatile in nature as compared
to non-blue chip companies.Blue chip companies are considered for safe investment
and advisable for conservative class of investors.As per the analysis,the figure says to
investors that Infosys Tata Consultancy Services and Wipro are the stocks in which
the money should be invested in.Tata Consultancy has maintained its first rank among
other blue chip companies in the long run in terms of Market Capitalization and
Annual dividend payout.
According to this study Blue Chip Companies are less volatility in nature because
they earn high rate ofreturn on investment at regular interval. So they able to pay
dividend to shareholder at higher rate every financial year.
CHAPTER SEVEN
Limitations
1 The study is focused only on five blue chip companies.
2 The limited tools have been used in this study.

CHAPTER EIGHT
Suggestions
1 Every investor is suggested to make a detailed analysis of the share market, about
the company and industry before making investment decisions.
2 Investing in one security alone is not recommended as returns may not be favorable
always. Investing in multiple and diversified Blue Chip companies securities reduces
the risk and provides a stable returns.
3 It is suggested to buy and hold the undervalued stocks, i.e., InfosysTata Consultancy
Services and Wipro as their shares’ prices have a tendency to increase in the future.
4Stock market fluctuates from time to time; therefore it is advised to check the market
conditions each time before investing.
5Information Technology industry of India is an industry which is closely related to
the world economy and any changes to the world economy will affect the IT industry
in the country. So, it is suggested to be aware of the global economy before investing
inIT industry.
6 For long term investors, investments in Infosys and Wipro will fetch them good
returns and capital appraisal.
7 Investing in share market using borrowed funds should be avoided as far as

possible.
8 Every person should have his own strategy for investments in the share market and
his decisions should not be influenced by others.
9 It is always better to hold good stocks than to engage in rapid-fire trading for quick
returns.
10 Invest regularly and systematically in Blue Chip Companies.

11Buy low sell high. This is a basic rule, whatever approach you choose, you only
make money if you sell a stock for more than you paid for it.
CHAPTER NINE
Bibliography
1. Financial management, Theory and Practice. Shashi K Gupta, RK Sharma.
2. Financial management, Theory, concepts and problems. R.P. Rustagi.
3. Fundamentals of Finance Management. Van Horne James C., Wachowicz John M.
4. www.moneycontrol.com
5. www.economictimes.com
6. www.investopedia.com
7. www.money.rediff.com
8. www.financeindia.org.
9. www.getmoneyrich.com
10.www.money.livemint.com
11.www.tcs.com
12.www.infosys.com
13. www.wipro.com
14.www.moneycontrol.com
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16. www.tradingeconomics.com
17. www.reuters.com
18. www.wikipedia.com
19. www.scribd.com
20. www.hedgeequities.com
21. www.economictimes.indiatimes.com
22.http://www.investinganswers.com
23.http://multibaggerstocks.org
24.http://www.rediff.com
25.http://profit.ndtv.com
26.http://www.heromotocorp.com
27.http://www.ril.com
28.www.sbi.co.in
29.www.tatasteel.com
30.www.coalindia.in
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Indian Stock market. Indian Press, 22-28.
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International Journal of Business and Management. Vol. 7, No. 3, February 2012: 33
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assesment in the information technology sector. Academy of management Journal 34 ,
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Journal , 29 - 54.
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unpublished MBA project, Maseno University .
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Material used for above research
1. http://investors.tcs.com/investors/Documents/Annual
%20Reports/TCS_Annual_Report_2014-2015.pdf
7. http://www.wipro.com/documents/investors/pdf-files/Wipro-Annual-
Report-2016.pdf
8. http://wiproel.com/annual-report-14-15/WEL_Annual_Report_2015.pdf
9. http://www.wipro.com/documents/investors/pdf-files/Wipro-annual-
report-2013-14.pdf
10.http://www.wipro.com/annualreport/2012-13/
11http://www.wipro.com/documents/investors/pdf-files/Wipro_Annual_Report_2011-
12.pdf
12. http://www.ril.com/getattachment/7a5e5c06-f63a-4296-bb43-
debb074fbada/AnnualReport_2011-12.aspx
13. http://www.ril.com/getattachment/56a9a0bd-d1e1-4735-9e8f-
ece1e7e71e87/AnnualReport_2015-16.aspx
14. http://www.ril.com/getattachment/61bc960b-a580-4ad1-9b27-
db3b94901b07/Annual%20Report%202014-2015.aspx
15. http://www.ril.com/getattachment/7b7a9d94-f301-45ab-8d34-
baf30ee44160/AnnualReport_2013_14.aspx
16. http://www.ril.com/getattachment/14066af0-f5b6-46ed-9370-
7386fa924b12/AnnualReport_2012-13.aspx
17. https://www.infosys.com/investors/reports-filings/annual-
report/annual/Documents/infosys-AR-16.pdf
report/annual/Documents/infosys-AR-15.pdf
report/annual/Documents/Infosys-AR-14.pdf
22. http://www.heromotocorp.com/sp-co/new-notewothy/AnnualReport2011_12.pdf
23. http://www.heromotocorp.com/sp-
pe/uploads/Annual_Reports/pdf/20130809004805-pdf-184.pdf
24. https://www.heromotocorp.com/en-
np/uploads/Annual_Reports/pdf/20140708105458pdf291.pdf

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Certificate from the supervisor and director i

Chapters Page no.

4.2 Research Design…………………………………………...50-51

4.3 Data Collection……………………………………………..51

4.4 Data Analysis……………………………………………….51-52

5. Data analysis & interpretation…………………………53

Established Company:This is the second essential characteristic of a blue chip

Working for blue chip companies

There are two advantages more:

• As international company, you have high chance to travel the world

• You can obtain employee shares depending on the firm policy

Benefits of Blue Chip Companies Stocks

Advantages of investing in Blue Chip Stocks:

Blue Chip Companies & Dividend Distribution

LIST TOP 20 BLUE CHIP COMPAMIES

 Tata Consultancy Services (TCS

1 Tata Consultancy Services Limited (TCS)

Tata Consultancy Services Limited (TCS) is an Indian multinational information

Coal India Limited (CIL) is an Indian state-controlled coal mining company

Major Events and Milestones:

1- 1973–74 – Nationalization of coal mines, in order to provide for a higher

2- 1975–76 – Change of name of the company to ‘Coal India Limited’.

3- 1995–96 – Approval of a financial restructuring package by the Government,

4- 2001–02 – Laying down of a minimum internal rate of return of 12% at 85%

5- 2008–09 – Overall production of coal by the Company and its Subsidiaries,

Awards and Accreditations:

1- 2006–2007 – Conferred with the “Enterprise Excellence Award 2007” by the

3- 2009–2010 – Award of ‘Mini Ratna’ status by the Department of Public

3 Adani Port & Special Economic Zone LTD

AdaniAbbot Point Terminal 1 in Australia.

The group is a business behemoth based in India having a global footprint

The company offers following facilities:Dry Cargo Handling & StorageThe

4 HDFC Bank LTD

HDFC Bank Limited is an Indian banking and financial services company

Infosys Limited (formerly Infosys Technologies Limited) is an Indian

In October 1994, it made a private placement of 5,50,000 shares at 450

In 2014-15, it earned revenues amounting to 8.7 billion dollars and at present,

6 Hero Motor Corp LTD

Product range of the company includes:

Chairman - 1-Dr. Brij Mohan LalMunjal (Chairman Emeritus)

2-Pawan Munjal (Chairman, MD & CEO)

Products and services offered by the company:

2-Wipro Personal Computing Products

4- Software Products and Licences.

8 Reliance Industries LTD

The company was co-founded by DhirubhaiAmbani and his brother

Reliance Industries Limited operates world–class manufacturing facilities

The company works under different business segments:

1-Exploration and Production

1-Crude oil and natural gas

9 State Bank of India

Services offered by the company:

Products and services:

Chairman: Dinesh Kumar Sarraf

11 ICICI Bank LTD

Chairman: Mr. M. K. Sharma (Chairman)

12 Tata Steel LTD

Business divisions of the company:

Agrico Division :Tata Agrico is the first organized manufacturer in India of

Tata Growth Shop (TGS) :Has designed, developed, manufactured, erected

Wire Division : A pioneer in the manufacture of steel wires in India, it

Chairman: NatarajanChandrasekaran (Chairman)

Objectives of the Study: