Motilal Oswal picks 'Bruised Bluechips' in latest wealth study, Raamdeo shares the rationale

 Motilal Oswal's latest wealth creation study highlights the performance of 'Bruised Bluechips'—a category of stocks that have been temporarily battered by market conditions but show strong recovery potential. According to Raamdeo Agrawal, the study’s chairman, these companies present an attractive opportunity for long-term wealth creation. The research identifies that companies with sustained earnings growth and high economic profit often exhibit "hockey-stick returns," marked by sharp upward stock movements once their growth is fully recognized by the market.

Agrawal shared insights on how investing in companies that possess a robust economic profit strategy (i.e., those leveraging trends, existing endowments, and strategic moves) increases the chances of significant returns. The study also highlights the resurgence of mid and small-cap stocks, which are particularly well-positioned for such returns if purchased at reasonable prices​In essence, the key takeaway is that "Bruised Bluechips" could offer compelling investment opportunities, especially when considering their long-term growth potential and economic profit fundamentals.