28 Potential Blue Chip Stocks To Buy

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