Everyone wants a piece of blue chip stocks. These stocks are of companies that have a great reputation, proven financial track record, and a history of outperformance in the industry. Reliance, Infosys, and Tata Consultancy Services (TCS) are some prominent blue chip stocks in India. While they represent tremendous value, blue chip stocks rarely turn multibaggers. The reason is that they’ve already provided great returns on the way to becoming a blue chip company.
So if you’re looking for a multibagger for your portfolio, investing in a blue chip company isn’t going to help. Instead, you can invest in emerging blue chip stocks. These stocks are companies that are on the right path to becoming blue chip companies. In this article, we’ve listed 5 of the best emerging blue chip stocks in India.
1. Ashoka Buildcon
Trading at around ₹100, as of 24th August, Ashoka Buildcon could turn out to be a serious multibagger for your portfolio. The company, which is the flagship company of the Ashoka Group, is one of the leading highway developers in India but is also engaged in power transmission and distribution on EPC (engineering, procurement, and construction) basis.
Ashoka Buildcon has also formed various Special Purpose Vehicles (SPV) for executing projects awarded from the National Highway Authority of India (NHAI). The Indian government’s emphasis on infrastructure will benefit Ashoka Buildcon and ensure that it has a solid order book for years to come.
2. Confidence Petroleum India
Part of the Confidence group and started in 1993, Confidence Petroleum India Limited has 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. Today, the group has a strong network of 8 cylinder manufacturing plants and 55 bottling units across India.
The company also provides its services outside India, setting up cylinder manufacturing and bottling units in Indonesia. Confidence Petroleum has also collaborated with a few Chinese and Israeli companies for redistribution of products and services in LPG and future fuel segments. The stock trades under ₹70 on the exchanges, as of today.
3. Apollo Tricoat Tubes
With a market capitalization of over ₹4500 crores, Apollo Tricoat Tubes is one of the biggest emerging names in the Steel and Iron sector. The company has a diversified product portfolio and specializes in marketing and distribution of round bars, I-beam, square bars, angles, channels, serrated flats, steel coils and strips.
Apollo Tricoat buys its raw materials from SAIL, APL, Rathi, Supreme on a cash basis and later distributes it to real estate developers and capital goods manufacturers.
4. H.G. Infra Engineering
Another infra play, H.G. Infra Engineering was founded in 2003 by Shri Hodal Singh, a veteran in the field of construction. 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. Each share of H.G. Infra trades on the stock exchanges at ₹560.
5. Share India Securities
Equity broking is growing in India, so it is only right that Share India Securities is being backed as an emerging blue chip. The company, which was founded in 1994, is also engaged in investing, trading, acting as a depository participant, research and analysis, mutual fund advisory, and distribution of mutual funds. The company has been with the Bombay Stock Exchange (BSE) since 2000. As of writing, Share India Securities was trading at ₹519.