Evaluating the Strength of Blue Chip Stocks in the BSE Dollex

Introduction

In India’s equity markets, benchmark indices play a crucial role in reflecting overall market sentiment and guiding investment strategies. Among these, the BSE Dollex 30 holds a unique position as the USD version of the BSE SENSEX — the country’s most tracked bellwether index. By denominating performance in US dollars, it offers a global perspective on India’s largest, most liquid, and financially strong companies, making it a valuable tool for overseas investors monitoring both market performance and currency fluctuations.

Understanding the index’s composition, methodology, and market role is essential before evaluating the performance of its blue chip constituents. This sets the stage for identifying leaders who have consistently shaped market direction and delivered shareholder value.

Overview of the BSE Dollex 30

Launched on 25 July 2001, the BSE Dollex 30 mirrors the performance of the 30 largest and most financially sound companies listed on the Bombay Stock Exchange (BSE) — but in USD terms. Its universe is drawn from the BSE SENSEX, and it represents a broad spectrum of sectors, including Financial Services, Energy, Information Technology, Consumer Discretionary, FMCG, Industrials, Healthcare, Utilities, and Telecommunications.

The index is float-adjusted market cap weighted and is reconstituted semiannually in June and December, ensuring it remains reflective of current market conditions. Its base value is 125, and its calculation currency is USD, giving global investors a consistent and comparable performance measure.

BSE Dollex 30 Constituents

The BSE Dollex 30 is composed of 30 large-cap, liquid, and financially robust companies spanning diverse sectors of the Indian economy. This sectoral spread ensures balanced representation and reduces overdependence on any single industry.

These companies collectively define the Dollex 30’s performance, with financial services, information technology, and consumer discretionary sectors carrying significant weight in the index.

BSE Dollex 30 Performance, Risk, and Valuation Overview

Performance Snapshot (as of 31 July 2025)

The BSE Dollex 30 has experienced short-term volatility while maintaining healthy long-term gains. Over the past month, the index saw a -4.94% total return, extending to -1.45% over three months. However, year-to-date (YTD) performance remains positive at 2.39%, supported by an annualised 9.83% return over the last three years and 14.39% over five years. Over a decade, the index has delivered a solid 9.11% annualised return, reinforcing its position as a steady long-term investment benchmark.

Risk and Valuation Metrics

Risk in the BSE Dollex 30 is measured by the standard deviation of monthly returns. Over the past decade, total return volatility has averaged 19.52%, yet risk-adjusted returns have consistently remained positive, highlighting the index’s underlying strength.

From a valuation standpoint, the index currently trades at a P/E ratio of 23.26 and a P/B ratio of 4.32, with a dividend yield of 1.21%. These figures illustrate the premium investors are willing to pay for blue-chip companies, reflecting confidence in their earnings consistency and growth potential.

This backdrop of steady long-term returns, measured risk, and premium valuations provides a solid foundation for analysing the performance of individual blue chip stocks within the index.
 

Comparing Blue-Chip Strength: Performance Insights from BSE Dollex Constituents

The BSE Dollex Index features some of India’s most prominent blue-chip companies, representing sectors like banking, IT, energy, FMCG, and manufacturing. These constituents are known for their market leadership, strong balance sheets, and consistent performance across market cycles.

Reliance Industries Ltd.

Reliance Industries Ltd. (RIL), a diversified blue-chip leader in energy, retail, and telecom, shows a mix of opportunity and caution. Valuation metrics indicate a Price-to-Intrinsic Value ratio of 0.70, suggesting undervaluation, yet its TSR Value Index of 25.00 and a three-year decline in book value point to muted investor returns.

Profitability is strong, with five consecutive quarters of net profit and PBT growth, three years of uninterrupted EBITDA gains, and four quarters of steady EPS growth. The Piotroski F-Score stands at 4.0, but income appeal is low with a 0% dividend yield and 4.36% earnings yield, alongside weak returns on assets.

Growth remains solid, with annual sales and total assets up for three straight years, though the TSR Growth Index is just 24.58. Stability risk is elevated, reflected in an Altman Z-Score of 1.76.

In short, RIL combines undervaluation and strong operational growth with lagging shareholder returns and higher financial risk, making it a candidate for selective, cautious investment.

Tata Consultancy Services Ltd.

Tata Consultancy Services Ltd. (TCS), India’s largest IT services exporter, shows a mix of premium pricing and strong profitability. Valuation-wise, it trades at a Price-to-Intrinsic Value ratio of 0.989, near fair value, but its Price-to-Book Ratio of 10.98 signals an expensive valuation relative to assets. The TSR Value Index is very poor at 18.06, despite book value rising steadily over the past three years.

Profitability is a clear strength.TCS records a Piotroski F-Score of 7.0, showcasing strong three-year averages in both ROE and ROA, complemented by an impressive ROCE of 51.50%. Over the past twelve months, it delivered 49.68% ROE and 30.37% ROA, with all key trailing margins growing by 15%. Net profit has trended upward for three years, EBITDA has increased for three straight years, and EPS has grown steadily over four quarters. Margins remain strong, with a net margin of 19.24% and stability in the 15–20% range historically. However, the earnings yield is modest at 4.48%.

On growth metrics, TCS has logged three consecutive years of sales and total asset expansion. However, the TSR Growth Index remains modest at 24.58, indicating limited growth momentum. The company shows solid stability, boasting an 89.06 TSR Stability Index score, while its Altman Z-Score of 14.27 signals a very low risk of bankruptcy. 

Overall, TCS blends high profitability, operational stability, and consistent growth, but trades at a steep valuation with lackluster shareholder return metrics, making it a premium-quality stock with a price to match.

Bharti Airtel Ltd.

Bharti Airtel Ltd., a leading telecom giant, combines strong fundamentals with an attractive valuation. Its Price-to-Intrinsic Value ratio of 0.663 suggests undervaluation, while the TSR Value Index stands at a solid 68.06. Book value has risen steadily over the last three years, but a Price-to-Book Ratio of 7.87 points to an expensive market premium.

The company demonstrates strong profitability, reflected in a Piotroski F-Score of 7.0 and a 12-month ROE standing at 34.50%. All key trailing margins have expanded by 15%, net profit has trended upward for three years, and EBITDA has increased consistently for the same period. The company maintains a ROCE of 12.89% and a healthy net margin of 19.21%, though income returns are modest with a dividend yield of 0.860% and an earnings yield of 3.26%.

Growth indicators are strong, with a 289.63% YoY jump in net margin, three consecutive years of rising annual sales, and steady quarterly sales growth over the last five years. Total assets have grown consistently for three years.

From a stability perspective, Airtel’s debt-to-equity ratio is at its lowest point in five years, with debt reduction paired with revenue growth—a positive sign for balance sheet health.

Overall, Bharti Airtel stands out for its growth momentum, improving financial strength, and undervaluation, though high pricing relative to book value and modest income yields may temper investor enthusiasm.
 

Blue-Chip Performance Comparison

A closer look at these three BSE Dollex constituents reveals three very different investment narratives. Reliance Industries Ltd. emerges as an undervalued, diversified powerhouse with robust operational growth. However, its appeal is tempered by lackluster shareholder returns, a declining book value over the past three years, and elevated financial risk.

Tata Consultancy Services Ltd., on the other hand, shines with exceptional profitability, remarkable stability, and consistent growth in both revenue and assets. Yet, its high valuation and persistently weak TSR scores position it more as a premium blue chip suited for investors willing to pay a higher price for quality.

Bharti Airtel Ltd. delivers a story of rapid growth and strengthening balance sheet health, aided by a steady reduction in debt and sustained sales momentum. Despite being undervalued based on intrinsic price, its high price-to-book ratio and modest income yields suggest it may appeal more to growth-focused rather than income-driven investors.

Conclusion

The BSE Dollex 30 showcases a diverse mix of blue-chip leaders, each appealing to different investor profiles. Reliance Industries offers strong operations and undervaluation but carries financial caution flags. Tata Consultancy Services delivers premium profitability and unmatched stability, albeit at a high valuation. Bharti Airtel shines with growth momentum, debt reduction, and improving fundamentals, though its income yields remain modest. Ultimately, whether you seek value, quality, or growth, the Dollex 30 provides opportunities across the spectrum—making it a vital index for both domestic and global investors.

Trade smarter with Enrich Money — your partner for market insights, intelligent analytics, and seamless investing.

From research to execution, Enrich Money keeps you ahead in the market race.

Frequently Asked Questions

What is the BSE Dollex 30?

It represents the USD-denominated counterpart of the BSE SENSEX, encompassing 30 of India’s most prominent and financially robust companies.

Why is the BSE Dollex 30 important for investors?

It provides a global performance view, factoring in both market moves and currency fluctuations.

Which sectors dominate the Dollex 30?

Financial Services, Information Technology, and Consumer Discretionary hold the largest weight.

Which of the three companies analysed is undervalued?

Both Reliance Industries and Bharti Airtel show undervaluation based on intrinsic price ratios.

Who should invest in blue-chip stocks?

Ideal for investors aiming for stability, sustained long-term growth, and resilience through varying market cycles.

Disclaimer:  This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.