“Stable like a rhino, large caps lead the pack eventually…..”
Large cap stocks, also called as Blue Chips, acquire the coveted status after many years of consistent growth, first mover advantage and moats which are difficult for smaller companies to enter or breach. Large cap companies usually enjoy easier access to capital and are also more diversified, thereby reducing the overall risks. Being matured entities, these are more investor-friendly and usually provide higher dividends. Due to their access to resources, large caps are able to enter into capital intensive segments that offer lucrative opportunities and can also tide over industry headwinds with agility and in a much better manner than smaller companies. Due to their integrated model and the advantages of economies of scale, the margins enjoyed by large cap companies are usually a tad higher than smaller companies
For investors too, these companies are preferable due to availability of good liquidity for easy entry and exit from the stock.
We at DSIJ would like to bring to investors our product “Blue Chip Pick” which provides stock recommendations based on the company’s stable business model, management with hunger for growth and good dividend yield. The recommended Picks will be evaluated on the parameters of market cap, Beta, ROE, ROA, sectoral opportunities, dividend yield and moat.
It is a low-risk product that aims to provide return of 20-25% over a period of 18 months.