5 Attractive Blue Chip Stocks to invest in 2022 (Upside upto 60%)

Best and Attractive Blue Chip Stocks to invest in 2022 (Upside upto 50 percent)Attractive Blue Chip Stocks to invest in 2022

Blue-chip stocks have always rewarded investors with handsome returns in the medium to long term. Due to stock market volatility and Russian-Ukrain War, many stocks are now available at discounted price post a correction. Investors who are willing to invest in blue chip stocks can start accumulating now when these are taking correction in their share prices. In this article, we would provide 5 Attractive Blue Chip Stocks that have corrected over 30% and have good potential upside up to 60% in the medium to long term.

Also Read: 10 Penny or Low Priced Stocks invested by Rakesh Jhunjhunwala in 2022

What are bluechip stocks?

Blue-chip stocks are large cap companies which are well established, have healthy operations and are consistent performers.

Investing in blue-chip stocks has always rewarded investors in the medium to long term. Investors can invest in blue-chip stocks in a disciplined manner and accumulate during stock market corrections. Investors can invest in blue chip stocks when they correct over 20% without much change in fundamentals.

List of 5 Attractive Blue Chip Stocks to invest in 2022 (Upside upto 60%)

The list s filtered from NIFTY100 stocks that have majorly corrected and have scope for good upside. Here is the list of blue chip companies that have corrected recently.

#1 – Jubilant Foods – 43%, down from its peak share price

#2 – Info Edge – 42%, down from peak price

#3 – HDFC AMC – 38%, down from peak price

#4 – Indus Towers – 37%, down from peak price

#5 – SAIL – 35%, down from peak price

5 Attractive Blue Chip Stocks to invest now – Financials, Positive and Risk Factors

Now that we have seen the list of blue chip stocks trading at discounted prices, let us get into financials, positive factors, risk factors and share price performance. These details help investors to take a decision to invest or avoid.

#1 – Jubilant Foods – CMP Rs 2,628 – Upside up to 60%

Jubilant FoodWorks Limited is part of the Jubilant Bhartia Group and is India’s largest food service Company. The company holds the master franchise rights for three international brands, Domino’s Pizza, Dunkin’ Donuts and Popeyes® addressing three different food market segments.

Financial Performance

  • Its consolidated revenues have increased from Rs 2,583 Crores in FY17 to Rs 3,311 Crores in FY21.
  • Its consolidated profits have increased from Rs 57 Crores in FY17 to Rs 230 Crores in FY21.
  • Even its recent quarterly results indicate that its revenue increased from 1,069 Crores (Qtr ending Dec-20) to Rs 1,210 Crores (Qtr ending Dec-21). Its margins have improved from Rs 123 Crores to Rs 135 Crores for a similar period.

Positive Factors in this company

  • Strong  revenue growth in the last 5 years.
  • Strong  margin growth in the last 5 years.
  • Company with zero debt.
  • Company with decreasing promoters pledge.
  • Company cash flow from operations is increasing in the last 2 years.
  • Some of the stock brokers have recommended to buy this stock in the last one quarter.

Risk Factors in the stock

  • ROE is declining in the last 2 years.
  • ROCE declining in the last 2 years.
  • Annual net profits declining in the last 2 years.

Performance of Share Price

  • 1 year returns – minus 16%
  • 3 years returns – 106%

Stock brokerages like Prabudas Lilander recommend this stock to buy with a target price Rs 3,600 (37% upside) and Motilal Oswal with target price of Rs 4,200 (60% upside).

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#2 – Info Edge – CMP Rs 4,339 – Upside up to 50%

Info Edge Limited (popularly called as Naukri earlier) is a pure play internet company. The company runs an online job portal Naukri.com, a matrimony website Jeevansathi.com, a real estate classifieds platform 99Acres.com, an educational website Shiksha.com etc.

Financial Performance

  • Its consolidated revenues have increased from Rs 887 Crores in FY17 to Rs 1,120 Crores in FY21.
  • Its consolidated profits have increased from Rs 146 Crores in FY17 to Rs 1,620 Crores in FY21.
  • Even its recent quarterly results indicate that its revenue increased from 277 Crores (Qtr ending Dec-20) to Rs 419 Crores (Qtr ending Dec-21). Its margins have increased from Rs 773 Crores to Rs 2,223 Crores for a similar period. Abnormal profits are due to profits from investments.

Positive Factors in this company

  • Strong  revenue growth in the last 5 years.
  • Strong  margin growth in the last 5 years.
  • Strong annual EPS growth.
  • Company with zero debt.
  • Company with zero promoters pledge.

Risk Factors in the stock

  • Increasing trend in in non core income.
  • Company not able to generate adequate net cash.
  • Recent quarter results indicate declining in profits if we exclude profits from investments.

Performance of Share Price

  • 1 year returns – Negative 13%
  • 3 years returns – 141%

Stock brokerages like Sharekhan recommend this stock to buy with a target price Rs 6,500 (50% upside).

#3 – HDFC AMC – CMP Rs 2,081 – Upside up to 23%

HDFC AMC Limited is one of India’s largest mutual fund managers with Rs 4.4 trillion in assets under management. During FY18-19 they came for initial public offering and became a publicly listed company in August 2018.

Its principal shareholders are HDFC and abrdn Investment Management Limited which owns 52.6% and 16.2% stake, respectively.

Financial Performance

  • Its revenues have increased from Rs 1,480 Crores in FY17 to Rs 1,852 Crores in FY21.
  • Its profits have increased from Rs 550 Crores in FY17 to Rs 1,325 Crores in FY21.
  • Even its recent quarterly results indicate that its revenue increased from 481 Crores (Qtr ending Dec-20) to Rs 549 Crores (Qtr ending Dec-21). Its margins have declined from Rs 369 Crores to Rs 359 Crores for a similar period.

Positive Factors in this company

  • Strong  revenue growth in the last 5 years.
  • Strong  margin growth in the last 5 years.
  • Company with no debt.
  • Company with zero promoters pledge.
  • Book value per share is increasing in the last 2 years.
  • FPI / FIIs increasing their share holding

Risk Factors in the stock

  • Its recent quarterly results indicate declining in profits YoY.
  • Increasing trend in in non core income.
  • ROCE has declined in the last 2 years.
  • Promoters decreasing their share holding.
  • Company not able to generate adequate net cash.

Performance of Share Price

  • 1 year returns – minus 34%
  • 3 year returns – 47%

Stock brokerages like KR Choksey recommend this stock to buy with a target price Rs 2,500 (20% upside) and ICICI Direct with target price of Rs 2,550 (23% upside).

#4 – Indus Towers – CMP Rs 208 – Upside up to 37%

Indus Towers Limited is formed by the merger of Bharti Infratel Limited and Indus Towers. This combined strength makes Indus, one of the largest telecom tower companies in the world. Enabling communication for millions of people daily, Indus will continue to provide affordable, high-quality and reliable services for the growing network connectivity needs of India. Indus Towers Limited has over 175,510 towers and 318,310 co-locations (as on 31st December 2020) and a nationwide presence covering all 22 telecom circles.

Financial Performance

  • Its revenues have increased from Rs 6,084 Crores in FY17 to Rs 13,954 Crores in FY21.
  • It generated a loss of Rs 1,552 Crores FY17 Vs. profits of Rs 2,912 Crores in FY21.
  • Even its recent quarterly results indicate that its revenue increased from 4,060 Crores (Qtr ending Dec-20) to Rs 6,927 Crores (Qtr ending Dec-21). Its margins increased from Rs 703 Crores to Rs 1,570 Crores for a similar period.

Positive Factors in this company

  • Strong  revenue growth in the last 5 years.
  • Strong  margin growth in the last 5 years.
  • High ROE.
  • Company with low debt.
  • Stock brokers upgraded recommendations in the last 3 months.

Risk Factors in the stock

  • Company with growing costs YoY for long term projects.
  • Companies with high promoters pledge.
  • The book value of the company has deteriorated in the last 2 years.

Performance of Share Price

  • 1 year returns – Negative 20%
  • 3 years returns – Negative 30%

Stock brokerages like ICICI Direct recommend this stock to buy with a target price Rs 280 (35% upside) and Jefferies (overseas research firm) with a target price of Rs 285 (37% upside).

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#5 – SAIL – CMP Rs 97.5 – Upside up to 54%

Steel Authority of India Limited (SAIL) is India’s largest state-owned iron ore producer. It is one the leading steel-making company in India.

Company manufactures and sells a wide variety of steel products such as HR/CR sheets and coils, galvanised sheets, electrical sheets, structurals, railway products, plates, bars and rods, stainless steel and other alloy steels.

Financial Performance

  • Its revenues have increased from Rs 44,501 Crores in FY17 to Rs 69,113 Crores in FY21.
  • It generated a loss of Rs 2,950 Crores FY17 Vs. profits of Rs 3,680 Crores in FY21.
  • Even its recent quarterly results indicate that its revenue increased from 19,835 Crores (Qtr ending Dec-20) to Rs 25,246 Crores (Qtr ending Dec-21). Its margins increased from Rs 1,246 Crores to Rs 1,347 Crores for a similar period.

Positive Factors in this company

  • Strong  revenue growth in the last 5 years.
  • Strong  margin growth in the last 5 years.
  • Company reducing debt.
  • Company with zero promoters pledge.
  • Rising net cash flow from operating activity.
  • Book value per share is increasing in the last 2 years.
  • Strong annual EPS growth.
  • Good dividend paying company.
  • Rakesh Jhunjhunwala has invested in this company.

Risk Factors in the stock

  • Its recent quarterly results indicate declining in profits YoY.
  • Some of the stock brokers have downgraded the recommendations.

Performance of Share Price

  • 1 year returns – 27%
  • 3 years returns – 86%

Stock brokerages like ICICI Direct recommend this stock to buy with a target price Rs 142 (46% upside) and Sharekhan with target price of Rs 150 (54% upside).

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Suresh KP

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