The best time to buy a Blue Chip Stock is when it is not yet one! Motilal Oswal has done yeoman service to mankind by identifying potential blue chip multibaggers available at reasonable valuations
Motilal Oswal’s 16th Wealth Creation Study on Blue Chips contains a wealth (pun intended!) of information on how Blue Chip Stocks have given a consistent 24%+ CAGR return consistently over the past 20 years. If you would have invested even a paltry sum of money in any of these blue chip stocks, you would have been a millionaire several times over.
The interesting part of the study is the identification of potential blue chips. Because these stocks haven’t yet reached pedigreed blue chip status, they are still available at reasonable valuations. However, these stocks already are exhibiting some of the characteristics of a blue chip stock and so investors would do well to buy these stocks now for rich returns in the future.
| MCap | Current | Divd Yield (%) | Last 5-year CAGR (%) | Divd Payout (%) | RoE (%) | ||||||||||||||||||||
| (INR b) | P/E (x) | Current 5-yr Avg | Sales | PAT | Divd | Latest | 5-yr Avg Latest 5-yr Avg | ||||||||||||||||||
| BGR Energy Systems | 18 | 6 | 4.0 | 1.5 | 74 | 88 | 140 | 23 | 21 | 39 | 33 | ||||||||||||||
| Biocon | 62 | 15 | 1.4 | 1.2 | 16 | 30 | 32 | 20 | 21 | 26 | 18 | ||||||||||||||
| Coromandel Inter. | 81 | 12 | 2.4 | 3.4 | 38 | 62 | 67 | 30 | 28 | 42 | 35 | ||||||||||||||
| Crompton Greaves | 77 | 12 | 1.8 | 0.7 | 16 | 38 | 32 | 21 | 18 | 34 | 37 | ||||||||||||||
| Deepak Fertilisers | 13 | 6 | 3.3 | 3.9 | 17 | 19 | 14 | 25 | 25 | 19 | 17 | ||||||||||||||
| eClerx Services | 21 | 14 | 3.1 | 4.5 | 41 | 31 | 34 | 71 | 47 | 55 | 76 | ||||||||||||||
| Emami | 60 | 27 | 0.9 | 1.2 | 24 | 36 | 21 | 24 | 29 | 35 | 35 | ||||||||||||||
| GRUH Finance | 19 | 19 | 2.1 | 3.1 | 26 | 33 | 39 | 45 | 36 | 31 | 26 | ||||||||||||||
| Guj Gas Company | 47 | 14 | 3.3 | 2.3 | 22 | 31 | 76 | 66 | 37 | 33 | 28 | ||||||||||||||
| Hawkins Cookers | 8 | 25 | 2.7 | 5.3 | 18 | 43 | 55 | 75 | 58 | 75 | 76 | ||||||||||||||
| Indraprastha Gas | 55 | 19 | 1.3 | 2.4 | 30 | 17 | 14 | 28 | 30 | 28 | 30 | ||||||||||||||
| Info Edge (India) | 35 | 35 | 0.1 | 0.1 | 17 | 33 | 19 | 5 | 4 | 20 | 20 | ||||||||||||||
| Kansai Nerolac | 47 | 23 | 1.1 | 1.4 | 15 | 18 | 15 | 27 | 27 | 24 | 22 | ||||||||||||||
| Karur Vysya Bank | 40 | 9 | 3.2 | 3.4 | 26 | 27 | 24 | 33 | 28 | 22 | 20 | ||||||||||||||
| M & M Financial | 64 | 12 | 1.6 | 1.7 | 24 | 37 | 32 | 23 | 23 | 22 | 19 | ||||||||||||||
| Mahindra Holiday | 25 | 22 | 1.4 | 1.5 | 20 | 25 | 40 | 35 | 27 | 22 | 50 | ||||||||||||||
| Manappuram Finance | 45 | 11 | 1.1 | 0.9 | 128 | 127 | 124 | 18 | 16 | 22 | 39 | ||||||||||||||
| Opto Circuits | 40 | 16 | 2.1 | 2.0 | 32 | 36 | 29 | 36 | 43 | 25 | 37 | ||||||||||||||
| Page Industries | 28 | 34 | 1.0 | 2.2 | 39 | 36 | 56 | 54 | 51 | 53 | 42 | ||||||||||||||
| Rupa & Company | 12 | 31 | 0.4 New Listing | 18 | 38 | 34 | 22 | 21 | 18 | 24 | |||||||||||||||
| Shriram City Union | 25 | 8 | 1.2 | 1.2 | 40 | 47 | 30 | 13 | 15 | 22 | 23 | ||||||||||||||
| Talwalkar Better Value | 3 | 19 | 0.7 | 0.7 | 41 | 93 | 231 | 16 | 10 | 18 | 29 | ||||||||||||||
| TD Power Systems | 8 | 18 | 0.7 New Listing | 3 | 27 | 65 | 14 | 9 | 28 | 50 | |||||||||||||||
| Thermax | 53 | 13 | 2.0 | 1.3 | 23 | 19 | 11 | 29 | 31 | 33 | 34 | ||||||||||||||
| TTK Prestige | 30 | 28 | 0.5 | 1.1 | 28 | 63 | 43 | 17 | 20 | 54 | 38 | ||||||||||||||
| Voltas | 30 | 12 | 2.2 | 1.2 | 21 | 17 | 19 | 19 | 20 | 31 | 39 | ||||||||||||||
| VST Tillers Tractors | 4 | 9 | 1.9 | 2.8 | 27 | 39 | 36 | 17 | 16 | 32 | 31 | ||||||||||||||
| Zydus Wellness | 17 | 27 | 0.9 | 0.8 | 67 | 93 | 130 | 27 | 25 | 49 | 39 | ||||||||||||||
How to create own watchlist on blue chip?