How Raamdeo Agrawal’s QGLP Strategy Can Help You Spot the Next 100x Stock

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In a stock market that’s often ruled by noise, hype, and short-term bets, few voices cut through with the quiet authority of Raamdeo Agrawal.

The co-founder of Motilal Oswal Financial Services and one of India’s most respected equity investors, Agrawal is known not just for his investing acumen-but for his ability to simplify complex ideas into practical, repeatable principles.

One of his most enduring contributions is the QGLP framework-a simple yet powerful model to find high-conviction, long-term investments.

QGLP stands for:

• Quality

• Growth

• Longevity

• Price

And when applied with discipline, this framework becomes a compass-guiding investors toward businesses that don’t just survive, but thrive across cycles.

Let’s dive into each element-and understand how to use QGLP to build lasting wealth.

What Is the QGLP Framework?

At its core, QGLP is a filtering mechanism for stock selection.
It helps investors avoid traps and identify compounding machines-companies that grow profits sustainably, year after year.

Here’s how each part contributes:

🔍 Let’s Break Down Each Framework

✅ Q - Quality: The Foundation

Quality, in this framework, is two-fold:

1. Quality of the Business:

• High ROCE (Return on Capital Employed)

• Strong competitive moats (brand, network, cost advantage)

• Pricing power

• Low debt, clean balance sheet

• Repeatable business model

2. Quality of the Management:

• Integrity and transparency

• Capital allocation skill

• Track record of execution

• Shareholder-friendly behavior

Why It Matters:
Even if a company has growth, poor quality erodes shareholder value.
Without ethical and competent management, value gets destroyed—not created.

Example:
Infosys, HDFC Bank, and Asian Paints are often cited as "Q" champions in the Indian market due to their governance, clean financials, and execution.

✅ G - Growth: The Engine of Wealth Creation

In the QGLP lens, growth means sustainable and scalable earnings growth.

It’s not just about growing top-line revenue-it’s about growing free cash flows and profits, without burning capital.

What to Look For:

• High historical earnings growth (15–20% CAGR or higher)

• Expanding addressable market

• Clear demand tailwinds or industry shifts

• Operating leverage kicking in (profits grow faster than revenue)

Why It Matters:
Valuation multiples can expand or shrink, but earnings growth is non-negotiable for wealth creation.

Example:
Page Industries grew its profits at over 30% CAGR for more than a decade, thanks to its Jockey brand license and demand scalability in India's underpenetrated apparel market.

✅ L - Longevity: The Moat to Keep Growing

This is where QGLP gets nuanced-and powerful.

Longevity asks: Can this company sustain growth for 10, 15, or even 20 years?

In other words, is this just a good company-or a great one that can endure?

What to Assess:

• Industry life cycle stage

• Consistency in business model

• Adaptability to disruption

• Reinvestment runway

• Vision and execution depth of leadership

Why It Matters:
Short bursts of growth are common. But sustained compounding only happens when the business can reinvest and grow without reinventing the wheel every year.

Analogy:
Think of longevity as the “moat + fuel” combo. The moat keeps competitors out; the fuel (opportunity) keeps the machine running.

Example:
Nestlé India has been compounding quietly for decades, powered by timeless products like Maggi, and continuous innovation in health and nutrition.

✅ P - Price: Valuation Still Matters

Even the best business can be a bad investment if bought at the wrong price.

QGLP emphasizes valuation discipline-buying great companies, but only at a fair or reasonable price.

Metrics to Use:

• PE ratio relative to historical average

• PEG ratio (Price/Earnings to Growth)

• DCF valuation for high-conviction picks

• Market cap-to-sales or EV/EBITDA for capital-light businesses

Raamdeo’s rule:

Why It Matters:
Even if a company’s quality and growth are top-tier, overpaying compresses future returns.

Example:
DMart is a high-quality business, but many investors bought it at 120x earnings, limiting upside. Those who waited for rational valuation enjoyed better risk-reward.

🧠 Why QGLP Works Simplicity Meets Depth

What makes QGLP powerful is its balance.

• It’s not just value investing (buy cheap).

• It’s not just growth investing (buy fast).

• It’s “quality compounder” investing-buy businesses that can grow profitably, predictably, and for a long time.

It aligns beautifully with Warren Buffett’s mantra:

And it brings structure to the art of stock picking, giving long-term investors a framework to stay focused, curious, and disciplined.

⚠️ Common Traps QGLP Helps You Avoid

1 Hot stocks with weak fundamentals
▪️ Many tech IPOs lure investors with narratives, not numbers

2. Low PE traps
▪️ Cheap isn’t good if the company lacks growth or governance

3. High-growth stories without reinvestment runway
▪️ Some firms max out quickly in niche markets

4. Management red flags
▪️ Even one poor capital allocation decision can undo years of progress

QGLP filters all these out.

📈 QGLP in Action: Sample Checklist

Here’s how you could score a company on each dimension:

You can customize the weights based on your risk appetite-but this structure ensures you’re not blindly chasing any one metric.

🎯 To Sum-up

In a world full of quick tips and hot takes, Raamdeo Agrawal’s QGLP stands out as a framework that rewards thoughtful conviction over fast decisions.

It reminds us that investing is not about prediction-it’s about preparation.
It’s about stacking the odds in your favor by asking the right questions-about the business, its future, and the price you’re paying for it.

When you apply QGLP with patience, you stop reacting to markets-and start compounding with confidence.

💬 Your Turn

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