In a chat with ET Now, Ashish Maheshwari, director, Blue Ocean Strategic Advisors, shares his top two wealth creation idea.

ET:What is the first stock on your radar?

Ashish Maheshwari: The two stocks that I like are among the top five in the industry where they operate. Both are available at very good price/earnings multiples and have shown consistent performance in past.

Among them, the first is Kwality. It is India’s third largest private sector dairy processor Nestle India and Britannia Industries.

This particular company is already processing 3 million litre milk per day and it already has six processing plants. Recently, company carried out one expansion plan. The plan is going to be operational in this quarter. After this, they are going to make butter, cheese, ghee and flavoured milk from these plants.

With this, like they are also expanding their brand ‘Dairy best’ in northern Indian market, I am expecting topline to increase by almost Rs 1,000-crore in this particular segment once this plant is commissioned. From there, they are going to cater mainly to the retail side of the market, where the Ebitda margins are pretty high. In past also company has performed consistently. If you see last four years, the topline grew at a CAGR of almost 35 per cent.

The bottomline has been consistently growing at 22 per cent plus. I am expecting that in this particular year, company can report an EPS of almost Rs 10. Going forward, it will be around Rs 12 in FY17, when this plant is operational. The stock is one of the cheapest plays in the dairy sector.