MoneyWorks4Me

Check Before You Invest : Blue Chip India Ltd

BSE: 531936 NSE: BLUECHIP ISIN: INE657B01025
  |   Sector:  BFSI   |   Industry:  Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Blue Chip India Ltd belong to?
Blue Chip India Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.
Q.2 Is Blue Chip India Ltd a good quality company?
Blue Chip India Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Blue Chip India Ltd undervalued or overvalued?
Blue Chip India Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 0-year
Historic Median
Price to Earnings - -
Price to Book - -12.91
Price to Sales - -
EV to EBITDA - -131.66
Q.4 Is Blue Chip India Ltd a good buy now?
Blue Chip India Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.

  • How efficiently has it grown and managed operations?

    By checking its Total Asset growth.

  • How strong is its Capital position and Asset Quality?

    By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Blue Chip India Ltd?
Blue Chip India Ltd Operating Income growth is % for FY-, which is in line with its --year CAGR of N/A%, indicating stable growth.

Q.2 Does its ROIC exceed its WACC?
Blue Chip India Ltd return on invested capital (ROIC) is % for FY-, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.3 Total Asset growth of Blue Chip India Ltd?
Blue Chip India Ltd Total Asset growth is 0.67% for FY-, which is below its 0-year CAGR of 1.78%, indicating slower growth.

Ownership & governance

D: Promoter shareholding and pledge status of Blue Chip India Ltd?

Q.1 Promoter shareholding and pledge status of Blue Chip India Ltd?
Promoters hold 11.25% of the Blue Chip India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Blue Chip India Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Blue Chip India Ltd vs Industry Peers?
Blue Chip India Ltd AUM CAGR is %, compared to the 0-year industry median CAGR of 9.58%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Blue Chip India Ltd vs industry peers
Blue Chip India Ltd profit metrics are in line with the industry median level of -0.95%, indicating similar profitability compared to peers.
Profit Metrics
Current Level 0-year
Industry Median
NPM (%) - 4.06
PPOP (%) - -7.71
RoA (%) - 0.8

Q.3 Operating efficiency of Blue Chip India Ltd vs industry peers?
Blue Chip India Ltd ROCE () is in line with the industry median of (); while the current ROE (3.1) are above than the 5-year average Industry ROE (0.85). This shows that the business is positioned in the top quartile of the industry.
Operating Efficiency
Current Level 0-year
Industry Median
NPM (%) - 4.06
PPOP (%) - -7.71
RoA (%) - 0.8
ROCE (%) - -
ROE (%) - 0.85

Valuation & price assessment

Q.1 Stock return of Blue Chip India Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 15.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
15.8% 38.4% 39.8% -52.1%
Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings - - -
Price to Book - -12.91 -
Price to Sales - - -
EV to EBITDA - -131.66 -
Q.3 Valuation ratios of Blue Chip India Ltd vs historical and industry averages?
The current Price-to-Book (P/B) ratio of 0 is higher than its historical median of -12.91, indicating that the stock is trading above its historical average valuation.

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