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Top 5 Emerging Bluechip Stocks in India

Created on 13 Aug 2021

Wraps up in 5 Min

Read by 17.3k people

Updated on 01 Sep 2022

Just because you gave it a different name doesn’t change what it really is! You might be wondering why we wrote this as it sounds completely irrelevant to the topic but what if we told you that it isn’t beside the point?

When you read the topic, a question comes up, like “What is this emerging bluechip now?” Well for those of you who don’t understand the meaning of ‘emerging blue chips’, we will help you with it. After all, this is what we are here for! Moreover, we won’t be just discussing the meaning of it but we will also provide you with the list of chart-toppers in this segment. So, let’s get started.

What are Emerging Bluechip stocks?

If simply put, emerging blue-chip stocks comprise mid-cap stocks, which is nothing but a portfolio of stocks that aren’t included in the top 100 companies of India and rather fall under the bracket of the next 150 stocks where the market capitalization of companies generally ranges between 50 billion INR and 200 billion INR.

But then, is market capitalization the only parameter of differentiation between emerging blue chips (mid-cap stocks) and established blue chips (large-cap stocks)? Absolutely, no! Here’re the attributes that differentiate an emerging bluechip stock from a blue-chip stock -

PARAMETERS

BLUE CHIP 

(Large Cap Companies)

EMERGING BLUE CHIP (Mid cap Companies)

1. Company type

Well - established

Not well established 

2. Market Capitalisation

Greater than 20,000 Crore (in INR)

Greater than 5,000 Crore but less than 20,000 Crore (in INR)

3. Rankings

Top 100

101th - 250th 

4. Volatility 

Low

High

5. Growth Potential 

Low

High

6. Risk 

Low

High 

Well, this was just a basic difference between these two different segments of companies but the point is that if we go on segregating the companies on this basis, we’ll land up with a load of options which isn’t what we are looking for. Thus, here is a query that you can just put on our very own, feature-packed stock screener, Ticker -

MCAP > 100 AND MCAP < 5000 AND Net Profit 3yr CAGR > 15 AND Net sales 3yr CAGR > 15 AND ROE Y1 > 12 AND ROE 3yr Avg > 12 AND ROCE Y1 > 12 AND ROCE 3yr Avg > 12 AND Debt to Equity Y1 < 1 AND Net Profit Y1 < CFO Y1 * 0.7  AND Promoter Pledging Q1 = 0 AND Promoter Holding Q1 > 50

All you need to do is to put the aforementioned query in the search box of Ticker Screener and then just click on the button ‘Run Screener’. You will be glad to know that if you don’t want to write and run this long query, you can find a basket of these emerging blue chips in the Ticker Bundles section. Here is an example of a few bundles:

Let us now focus on the results yielded by the query we used for screening emerging blue-chip stocks:

H.G. Infra Engineering Ltd.

The company began its journey in 2003 as a private company promoted by Shri Hodal Singh who is a veteran in the field of construction with a rich experience of 40 years. The company has a diversified portfolio of work as it is involved in various civil construction, extension, and grading of runways, railway and land development, and water pipeline projects.

For checking various other fundamentals of the company refer to the following link: H G Infra

Ashoka Buildcon Ltd.

Ashoka Buildcon Ltd. is one of the leading highway developers in India and is also engaged in Power Transmission and Distribution on EPC (Engineering, Procurement, and Construction) basis. The flagship company of Ashoka group has also formed various Special Purpose Vehicles (SPV) for executing projects awarded from the National Highway Authority of India (NHAI).

For checking various other fundamentals of the company refer to the following link: Ashoka Buildcon

Share India Securities Ltd.

As the name suggests, the business area of Share India Securities Ltd. pans out to equity broking, investing, trading, acting as a depository participant, research and analysis, mutual fund advisory, and distribution of the same. The company has been with the Bombay Stock Exchange (BSE) since 2000 and later in 2007-08 it registered itself as a trading and clearing member of BSE. As of now, the company is also engaged in currency derivatives and the F&O segment of the NSE and BSE.

For checking various other fundamentals of the company refer to the following link: Share India Securities

Confidence Petroleum India Ltd.

The company started its operation in 1993 and has marked its presence in LPG and other related businesses like cylinder manufacturing, Auto LPG dispensing stations, LPG cylinders maintenance, LPG/CNG engineering services, and logistics streams. The company also provides its services across different geographies like cylinder manufacturing and bottling in Indonesia and also collaborated with a few Chinese and Israeli companies for redistribution of products and services in LPG and future fuel segments.

For checking various other fundamentals of the company refer to the following link: Confidence Petroleum

Apollo Tricoat Tubes Ltd.

This company operates in the sector of Steel and Iron Products where it specializes in marketing and distribution of Round bars, I-beam, Square bars, and various other products like angles, channels, serrated flats, steel coils & strips in the product segment of structural steel. The company buys the material from renowned manufactures like SAIL, APL, Rathi, Supreme on a cash basis and later distributes it to real estate developers, capital goods manufacturers, etc

For checking various other fundamentals of the company refer to the following link: Apollo Tricoat Tubes

The Bottom Line

“There's a freedom to being young that is harder to come by as time goes on.” - Dave Matthews

Be it in our lives or in the context of businesses, being in an early stage offers you the freedom of experimenting which makes you better each day as you get more confident with the process of decision making and stops you from being a follower.

In a similar way, investing in renowned companies can surely offer you a stable growth rate and a decent dividend yield, but investing in the emerging blue chips can be exponentially more rewarding as these companies are young and far away from the saturation point. All that an investor needs to take care of is to be cautious about them being a value trap with inefficient managerial and organizational structure.

Invest wisely!

*Disclaimer: The stock discussed above aren't recommendations from Finology, they are only picked to make you understand the concept.

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Prabudh Mishra is a finance and behavioral economics enthusiast. He has a sense of purpose to eliminate irrationality in human behavior while they make the most crucial financial decisions in their life.

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