Best Value Stocks in India: An Overview
As every investor wants to achieve the maximum out of their investment, investment in value stocks is one such great option by investing in undervalued shares.
What is Meant By Value Stocks?
Value stocks are undervalued stocks that are traded at a price that is lower than their intrinsic value. Investors invest in these value shares with a view that they will realize their potential in the market and attract the true position in the long term. These value-investing stocks will have the potential to earn profits in the long term based on some fundamental analysis.
The main feature of high-value stocks is a high dividend yield with a low P/E (price to earnings) ratio and a low P/B (price to book value) ratio. These stocks generally do not fluctuate with market highs and lows.
How Do Value Stocks Work?
Value stocks work in a similar way like purchasing something at a price lower than its actual value and later selling it at a higher price. Suppose an investor purchases a piece of land in some village at a low price which is less than its intrinsic value but later due to redevelopment activities in the village the land will get its actual price and can be sold at a higher price. Likewise, an investor invests in value stocks at a discounted price and has to wait to get its full earning potential.
Points to be considered before investing in value stocks-
- Company’s long-term plans
- Analysis of capital structure and management decisions
- Payment of constant dividends by a company
- Relative valuation techniques such as P/E Ratio, P/B Ratio, EV/ EBITDA
- DCF (Discounted cash flow) analysis of a company
- Generally subject to long-term investment
Best Value Stocks in India
Here is a list of top-value stocks in India 2022 -
| S. No. | Company Name | CMP (in ₹) | P/E | P/B | Market Cap (in ₹ million) | RoE (%) |
| 1. | Nestle India Limited | 20,059.5 | 89.3 | 64.5 | 1,934,051 | 102.9% |
| 2. | Info Edge (India) Limited | 4,154.2 | 15.3 | 4.0 | 535,819 | 62.3% |
| 3. | Britannia Industries Limited | 4,139.6 | 63.3 | 48.5 | 997,086 | 59.3% |
| 4. | Page Industries Limited | 46,663.8 | 70.9 | 39.7 | 520,482 | 49.3% |
| 5. | Tata Consultancy Services Limited | 3,332.7 | 30.7 | 12.6 | 12,194,338 | 43.1% |
| 6. | Coal India Limited | 232.1 | 5.4 | 2.7 | 1,430,369 | 40.3% |
| 7. | Marico Limited | 498.2 | 51.2 | 17.2 | 644,151 | 37.8% |
| 8. | Vedanta Limited | 318.6 | 5.7 | 2.2 | 1,184,114 | 36.3% |
| 9. | Tata Steel Limited | 108.5 | 4.8 | 1.2 | 1,326,236 | 35.9% |
| 10. | Indian Railway Catering and Tourism Corporation Limited | 740.5 | 66.2 | 28.5 | 592,360 | 35.2% |
| 11. | Mindtree Limited | 3,711.4 | 32.4 | 11.0 | 611,966 | 30.4% |
| 12. | JSW Steel Limited | 722.2 | 22.2 | 2.8 | 1,745,717 | 29.9% |
| 13. | Infosys Limited | 1,593.7 | 29.3 | 8.3 | 6,706,211 | 29.6% |
| 14. | Indus Towers Limited | 194.9 | 11.1 | 2.6 | 525,108 | 28.8% |
| 15. | Hindustan Zinc Limited | 314.2 | 11.6 | 4.2 | 1,327,384 | 28.1% |
| 16. | Hindustan Aeronautics Limited | 2,523.1 | 14.4 | 4.0 | 843,693 | 26.3% |
| 17. | Adani Power Limited | 356.5 | 13.3 | 5.7 | 1,374,806 | 26.3% |
| 18. | ITC Limited | 345.2 | 24.4 | 6.6 | 4,281,195 | 25.3% |
| 19. | Divi’s Laboratories Limited | 3,326.0 | 29.5 | 7.2 | 882,948 | 25.2% |
| 20. | Larsen & Toubro Infotech Limited | 5,133.6 | 35.1 | 9.8 | 900,322 | 26.2% |
* CMP – Current Market Price, P/E - Price to earnings ratio, P/B – Price to book value ratio, RoE – Return on Equity
(Data as of 15th October 2022.)
Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns
Top Mid-Large-Cap Value Stocks in India
| S. No. | Company Name | CMP (in ₹) | P/E | P/B | Market Cap (in ₹ million) | RoE (%) |
| 1. | TATA Communications Limited | 1,333.5 | 20.9 | 41.5 | 380,033 | 159.3% |
| 2. | CG Power & Industrial Solutions Limited | 270.7 | 42.8 | 29.7 | 413,303 | 92.9% |
| 3. | P&G Hygiene & Health Care Limited | 13,985.0 | 88.7 | 53.1 | 453,963 | 82.5% |
| 4. | Colgate Palmolive (India) Limited | 1,580.8 | 40.4 | 25.9 | 429,941 | 62.2% |
| 5. | ICICI Securities Limited | 557.4 | 13.9 | 7.0 | 179,925 | 57.5% |
| 6. | Blue Dart Express Limited | 7,092.2 | 35.6 | 16.2 | 168,282 | 43.8% |
| 7. | Emami Limited | 445.8 | 23.3 | 8.6 | 196,643 | 41.0% |
| 8. | Tata Elxsi Limited | 6,998.9 | 65.1 | 25.7 | 435,867 | 34.3% |
| 9. | Gillette India Limited | 5,124.5 | 56.8 | 18.0 | 166,981 | 34.1% |
| 10. | Tube Investments of India Limited | 2,544.0 | 42.5 | 14.1 | 491,020 | 32.5% |
| 11. | Deepak Nitrite Limited | 2,188.5 | 32.5 | 8.0 | 298,496 | 32.0% |
| 12. | CRISIL Limited | 3,023.8 | 38.4 | 12.8 | 220,927 | 30.4% |
| 13. | Abbott India Limited | 19,616.8 | 47.3 | 14.2 | 416,843 | 28.8% |
| 14. | APL Apollo Tubes Limited | 1,072.9 | 51.7 | 11.4 | 297,344 | 27.4% |
| 15. | Oracle Financial Services Software Limited | 3,102.2 | 14.8 | 4.2 | 267,963 | 27.2% |
| 16. | Fine Organic Industries Limited | 6,049.8 | 34.5 | 14.5 | 185,485 | 27.2% |
| 17. | NMDC Limited | 109.0 | 4.2 | 0.9 | 319,436 | 26.8% |
| 18. | Coforge Limited | 3,970.9 | 29.7 | 8.7 | 242,185 | 26.7% |
| 19. | KPR Mill Limited | 537.9 | 21.3 | 5.5 | 183,845 | 26.4% |
| 20. | Bayer CropScience Limited | 4,672.9 | 29.9 | 7.4 | 210,010 | 25.6% |
* CMP – Current Market Price, P/E - Price to earnings ratio, P/B – Price to book value ratio, RoE – Return on Equity
(Data as of 15th November 2022)
Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns
Top Small Large-cap Value Stocks in India
| S. No. | Company Name | CMP (in ₹) | P/E | P/B | Market Cap (in ₹ million) | RoE (%) |
| 1. | National Oxygen Limited | 107.6 | 98.4 | - | 517 | 48,274.7% |
| 2. | Raj Rayon Industries Limited | 50.2 | 4.2 | 31.3 | 27,647 | 1,821.3% |
| 3. | TechNVision Ventures Limited | 290.2 | 11.1 | - | 1,821 | 920.8% |
| 4. | Digicontent Limited | 14.5 | 43.9 | - | 844 | 376.6% |
| 5. | My Fair Lady Limited | 1.0 | 7.6 | 74.1 | 367 | 355.8% |
| 6. | Shah Alloys Limited | 59.0 | 2.7 | 5.0 | 1,168 | 299.7% |
| 7. | DCM Limited | 76.1 | 9.6 | 13.7 | 1,421 | 252.7% |
| 8. | Fertilisers & Chemicals Travancore Limited | 130.9 | 15.2 | 18.3 | 84,669 | 186.6% |
| 9. | Sonal Adhesives Limited | 162.1 | 15.7 | 29.4 | 982 | 182.1% |
| 10. | ISMT Limited | 47.7 | 0.6 | 1.2 | 14,334 | 171.2% |
| 11. | Arshiya Limited | 11.1 | 0.6 | 0.8 | 2,898 | 139.7% |
| 12. | Mukta Arts Limited | 58.7 | 25.7 | 36.0 | 1,326 | 136.3% |
| 13. | Standard Industries Limited | 26.3 | 0.9 | 1.2 | 1,689 | 130.5% |
| 14. | Panacea Biotec Limited | 141.0 | 0.8 | 1.1 | 8,636 | 127.0% |
| 15. | Jayaswal Neco Industries Limited | 25.9 | 1.2 | 1.3 | 25,149 | 122.6% |
| 16. | Schneider Electric Infrastructure Limited | 161.4 | 44.0 | 66.0 | 38,591 | 121.5% |
| 17. | Network18 Media & Investments Limited | 63.2 | 14.5 | 9.3 | 66,115 | 111.0% |
| 18. | BCC Finance | 54.8 | 2.9 | 3.2 | 723 | 102.1% |
| 19. | Ksolves India Limited | 342.6 | 20.9 | 29.0 | 4,061 | 93.6% |
| 20. | EKI Energy Services Limited | 1,612.3 | 9.2 | 7.1 | 44,330 | 93.6% |
* CMP – Current Market Price, P/E - Price to earnings ratio, P/B – Price to book value ratio, RoE – Return on Equity
(Data as of 15th November 2022)
Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns
Conclusion
Value stocks are the best option for an investor who has a long-term plan and if an investor has patience for the stock to reach its actual price. Therefore, one should invest in value stocks by clearly studying all the parameters of the company such as fundamental analysis, valuation analysis, etc. One should take the help of the list of the best value stocks to buy now to invest in these stocks.
This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.
Why would you buy a value stock?
Value stocks are a great scheme where an investor can purchase a stock at a low price and earn a higher return in the future. The investor can invest in best-value stocks in India by identifying the undervalued stock and trading using a Demat account.
What are value stocks NSE?
The value stocks can be traded on any platform under a recognized stock exchange such as NSE and BSE using a Demat account.
Are value stocks a good investment?
Yes, it is a good investment opportunity because they are generally associated with the undervalued stock of well-established companies which are hurt by market fluctuations and can tend to outperform in the long term. But there is a risk attached to these stocks whether they will be able to reach their true value or not in the future.
How many value stocks should I own?
There is no hard and fast rule for how many value stocks an investor should purchase. But investors should keep in mind that it is a long-term game to earn its best returns and therefore should diversify their portfolio to maintain their liquidity.