Best Valuable Stocks in India

  • 12 May 2024
  • Read 22 mins read

Value stocks are shares of businesses that are trading at a lower price than their actual worth. For example, a company with good financials and potential growth possibilities trading at a low price-to-earnings ratio can be considered a valuable stock.

Value stock investing is based on the idea that the market will subsequently recognise the true capacity of an undervalued organisation, leading to a growth in its stock price and remarkable returns to traders. This blog will explain in detail what a value stock is and its features, further uncovering some of the best valuable stocks in India. 

What are Value Stocks?

The most valuable shares in India are stocks that trade at a discounted or lower price than what the company's financials suggest they are truly worth. High-value stocks refer to shares of companies that seem underpriced compared to factors like the company's profits, sales, cash flows, debts, and dividends paid.   

One way to identify potentially undervalued companies is by looking at the Piotroski F-score. This scoring system awards points based on nine financial benchmarks across three main areas: profitability, debts and cash levels, and operational efficiency. The higher the score, the more attractive the stock may be for value investing.

Companies earn points for positive yearly profits, high returns on assets, positive operating cash flows exceeding profits, lower debt levels than the prior year, higher cash reserves, not issuing new shares recently, expanding profit margins, and higher efficiency in using assets compared to the previous year. Stocks scoring 8-9 points are the best opportunities for value investors.

The approach looks for companies that demonstrate strong fundamentals and financial health, which the market still needs to fully recognise and incorporate into stock valuation.

 

Top 10 Value Stocks in India to Consider in 2024- H2 Table Format  

The following breakdown provides an overview of high value stock in India. The share prices and market capitalisations of the top 10 most valuable shares in India help you make informed decisions.

Company

Share Price (INR)

Market Capitalisation (Billion INR)

Manali Petrochemicals Ltd

79.15

13.61

Bharat Electronics

234.75

1720

Apollo Tyres

482.15

305.93

Nestle India

2,490.35

2400

JK Paper

353.5

59.88

Tata Consultancy Services Ltd

3,880.10

14030

Colgate-Palmolive (India) Ltd

2,704.50

735.59

Hindustan Unilever Ltd

2,271.90

5340

Accelya Solutions India Ltd

1,759.80

26.27

Coal India Ltd

441

2720

Disclaimer: This list of the most valuable stock in India contains data updated as of April 23rd, 2024. However, it's important to conduct thorough research before making any investment decisions in these stocks.

Overview of the Best Value Stocks in India

The following is the overview of some of the most valuable shares in India:

Manali Petrochemicals Ltd 

Manali Petrochemicals Ltd was established in 1986 and has shown constant growth through the years. Manali Petrochemicals' current market price is around ₹87.15. In the recent quarter, the enterprise reported earnings, indicating its financial stability. The company has shown a good revenue growth of 15.16% for the past 3 years and has significantly decreased its debt. The call for Manali's petrochemical products is high, driven by various industries like cars and pharmaceuticals. The stock’s 52-week low is 55.95 and 52-week high is 87.20. The corporation plans to amplify its manufacturing ability and attention to sustainable practices. Manali Petrochemicals has tested commendable overall performance with increased turnover and profitability.

Bharat Electronics

Established in 1954, Bharat Electronics is the most-priced stock in India's defence electronics sector. The company's quarterly profits have shot up, which shows its strong economic health. Bharat Electronics is trading -0.23% lower at Rs 234.15 as compared to its last closing price. Bharat Electronics has been trading at Rs.234.15. Bharat Electronics has a P/E ratio 37.70 as compared to the sector P/E of 40.98. Bharat Electronics has experienced a boom, evident from a notable increase in turnover. It plans to diversify into non-defense sectors and increase worldwide outreach. Performance-wise, Bharat Electronics has accomplished impressive milestones, including a great order book value.

Apollo Tyres Ltd 

Apollo Tyres Ltd, founded in 1972, has become a leading tyre brand globally. The demand for its tyres is robust, pushed by great quality and reliability. Plans include further international growth and manufacturing excellence. Its present market price is Rs. 1,432.10.

Nestle India 

Established in the year 1959, Nestle India has grown to become one of the giants in the FMCG industry. The company posted a net profit of Rs. 655.61 crore. Currently, Nestle India is experiencing strong growth, with its highest domestic boom in a decade reported for 2024. The call for its products stays strong, leading to a growth plan of ₹5,000 crore with the aid of 2025 to enhance production and explore new avenues. The marketplace charge of Nestle India's stock is around ₹2437.10, with a P/E ratio of 78.36. The company's overall performance has been spectacular, with a net profit increase and consistent boom over the recent years.

JK Paper 

JK Paper, a leading paper manufacturer in India, changed the set-up in 1962. The company has had an enormous growth in sustainability. JK Paper is known for its commitment to environmental responsibility and has a strong demand for its merchandise both regionally and internationally. JK Paper's share price is ₹385.55. Over the past month, the share price has grown by 9.59%. The 52-week high for JK Paper is ₹452.00 and the 52-week low is ₹306.40. The current P/E ratio is 7.48. Plans include continued investment in sustainable practices and enlargement of its product range to meet developing market wishes. 

Tata Consultancy Services Ltd (TCS)

Founded in 1968, TCS is a global IT service and consulting behemoth. The company reported a very strong growth in its quarterly profit at Rs 908.1 crore for the quarter ended September 2023. TCS has shown a staggering boom, with an extensive worldwide presence and a diverse portfolio of offerings. Demand for TCS's offerings is excessive, reflecting the organisation's robust marketplace role and revolutionary answers.  TCS's destiny plans include persistent growth and leveraging new technologies for growth. 

Colgate-Palmolive (India) Ltd

Established with a vision to take care of oral health, Colgate-Palmolive (India) has been a household call since its inception. In 2023, they reported amazing quarterly profits, reflecting a 22% year-on-yr increase, with revenues hitting Rs. 1,471.1 crore. The company’s growth is fueled by using innovation and a deep expertise of purchaser desires, leading to a high call for their products. Despite market fluctuations, they keep an aggressive marketplace rate and PE ratio.  

Colgate-Palmolive plans to preserve its legacy of innovation while focusing on sustainability and inclusivity. Their performance remains strong with a commitment to powering one thousand million smiles.

Hindustan Unilever Ltd

Hindustan Unilever Ltd, a leading consumer goods company in India with a rich history, is known for its commitment to sustainability and its vast product portfolio that caters to regional solid and international demand. They plan to continue investing in these areas while expanding their offerings to meet evolving market needs. Reflecting its reputation, Hindustan Unilever Ltd boasts impressive performance metrics. As of May 4th, 2024, the company's share price sits at ₹2,215.50, though it has experienced a decrease of 16.43% over the past year. The 52-week high for Hindustan Unilever Ltd is ₹2,769.65, and the 52-week low is ₹2,172.05.  

Accelya Solutions India Ltd

Accelya Solutions India Ltd, a key participant in offering financial solutions to the air transport enterprise, has proven to have a stunning performance with quarterly profit growth and sales surpassing pre-COVID stages. The corporation's growth is upward, with increasing demand for its specialised services. As of May 3rd, 2024, Accelya Solutions' share price is ₹2,475.40. The company has experienced strong growth of 21.57% over the past year. The 52-week high for Accelya Solutions is ₹2,127.40, and the 52-week low is ₹1,251.45. The current P/E ratio is 26.56. 

Coal India Ltd

Coal India Ltd, set up in 1975, is the sector's biggest coal manufacturer. The demand for coal, regardless of environmental issues, remains excessive because of energy needs. Coal India’s present share price is Rs 474.80. Coal India has been trading in the price range of 476.30 & to 449.55 It has a P/E ratio of 7.89. The company posted a net profit of 8,682.20 Crores in the last quarter. Coal India plans to include green initiatives to deal with environmentally demanding situations while striving to meet energy needs. Their overall performance has been pivotal in India's power sector.

Is Value Stock a Good Investment?

Investing in the most valuable stocks in India can be a good approach.  The best value stocks in India are the company's shares bought and sold at expenses lower than what the organisations are genuinely worth based totally on their performance and ability.

Most investors underappreciate value stocks for numerous motives. However, value buyers look for these undervalued opportunities. They analyse company fundamentals like profitability, cash flows, assets, and debts to identify stocks trading at a discount to their intrinsic value.

If the analysis is correct, purchasing these best-value stocks in India when underpriced can lead to strong returns. As the company's true worth gets recognised over time, the stock price should rise, allowing value investors to profit.

However, investing in value shares does deliver risks. Some undervalued organisations may also struggle to improve their overall performance, causing their stocks to remain underpriced or decline similarly. Proper research and diversification are important when pursuing a value investing strategy focused on the most valuable shares and high-value stocks in India.

How to Invest in Value Stocks?

Valuable shares in India may be a perfect addition to any funding portfolio. They provide diversification and a chance for excessive returns. One way to invest in these valuable stocks is through traditional stock market investing. This includes studying companies you want to invest in and immediately buying stocks that appear underpriced. Carefully analysing a company's proper value could be essential here.

Another alternative is investing in exchange-traded funds (ETFs) for treasured Indian shares. ETFs are a basket of many undervalued corporation shares. Investing in a value-oriented ETF gives exposure to multiple valuable stocks in a single investment.

Mutual funds are another way to invest in best-value stocks in India. They are investment portfolios managed by experts. Some mutual funds observe a cost-making investment method, protecting a diversified group of stocks.

No matter which technique is used, investing in valuable stocks in India can offer a long-term boom because the marketplace recognises the companies' genuine worth over time.

Investing in Value Stocks via BlinkX

Investing in valuable and high-value stocks in India through BlinkX. The blinkX share market app is an excellent option for beginner-level traders. Its easy-to-use interface and educational materials let you make wise financial decisions. The following is the breakdown of  how you can invest in valuable Indian stocks via BlinkX: 

Research and Analysis:

 Research value stocks that fit your investment criteria. Look for companies with strong fundamentals, stable earnings, and healthy balance sheets. Analyse financial statements, earnings reports, and industry trends to identify potential candidates.

Evaluate BlinkX:

Assess BlinkX as a potential investment vehicle for value stocks. Examine its track record, management team, and investment strategy. Ensure that BlinkX aligns with your investment goals and risk tolerance.

Due Diligence:

Conduct thorough due diligence on BlinkX  to understand its past performance and investment approach. Review its historical returns, expense ratios, and portfolio holdings. Verify the fund's investment philosophy and methodology to ensure it matches your investment strategy.

Investment Allocation:

Determine the capital you're comfortable allocating to BlinkX to invest in value stocks. Consider diversification across different asset classes and investment strategies to manage risk effectively. Decide whether BlinkX fits into your overall investment portfolio.

Monitor and Review:

Continuously monitor BlinkX's and its holdings' performance. Review financial reports, market conditions, and economic indicators regularly to stay informed about changes that may affect your investment. Adjust your investment strategy as needed based on new information and evolving market trends.

Factors to Consider and Identify the High-Value Stocks in India

Investors can use several measures to determine if an organisation’s stocks are undervalued or overvalued. The following are a few common factors that one can consider when choosing value stocks:

  • Price-to-Sales (P/S) Ratio: The quotient of the market value of a corporation divided by annual income. A low P/S ratio could indicate an underpriced or valuable stock. 
  • Free Cash Flow: Investors would look at the free cash flow of an organisation; it is the cash left over after making all expenses and investments. The solid free cash flow could be indicative of the stock being undervalued. 
  • Price-to-Earnings (P/E) Ratio: The stock price is compared against the company's earnings per share. A low P/E could indicate that the stock is inexpensive relative to its potential for earnings.  
  • Price-to-Book (P/B) Ratio: The stock price about the book value of the company per share. The lower the P/B, the more the stock is being traded below the value of the company's assets.
  • Historical Performance: A study of a company's performance in difficult economic times can answer questions about survival and possibilities for the future.

Features of the Best Value Stocks in India

Value stocks are frequently undervalued and provide attractive funding possibilities. By investing in valuable stocks in India, buyers can benefit from these functions and can potentially gain from both earnings and long-term capital appreciation. The following are some features of the valuable stocks in India that make them appealing to buyers. 

  • Affordable prices: Value shares are generally priced lower than increased stocks, making them affordable for traders. 
  • High dividends: These stocks tend to have a higher dividend yield, which means they pay out a larger element in their income as dividends to shareholders. 
  • Stable prices: Value stocks are regarded for their price stability; this means they may be less stricken by market fluctuations, whether the marketplace is rising or falling. 
  • Strong dividend payout: Value stocks in India are frequently those of huge, well-established companies that are discounted for various reasons, including not good PR, a poor income season, and so on. However, they sooner or later recover their worth over the longer term. They frequently have strong dividend payout ratios and don’t spend their full retained earnings returned into the business. 
  • Low valuation: These shares have a low price-to-earnings ratio, indicating they're undervalued compared to their income and growth capacity.
  • Growth potential: While cost stocks can be undervalued currently, they frequently have the potential for a sizable boom in the future.

Advantages & Risks of Investing in Value Stocks

Although there can be benefits to value stock investing, it is essential to understand the risks. To help you understand the benefits and risks of value stock investment, you could keep in mind the following breakdown:

Advantages of Valuable Stocks

Risks of Valuable Stocks

Value stocks have a history of performing better than growth stocks in the long run.Focusing only on low prices might not always indicate a good value stock.
Value stocks are generally considered less risky than growth stocks, with limited downside risk.Ignoring a company's financial strength and performance by not conducting a thorough fundamental analysis.
A long-term investment approach helps reduce the impact of short-term market ups and downs.Not considering market trends and potential challenges that could affect the stock's performance.
Investing in value stocks helps diversify your portfolio, reducing overall risk.Lack of patience and a long-term investment strategy, which is crucial for value stock investing.

Conclusion
Investing in the most valuable stocks in India can be a good choice for investors looking for long-term investment plans and income growth. These stocks, often undervalued, provide affordable entry factors and the potential for significant price appreciation because the stock market recognises their true worth. Using a reliable stock market app is the most important step to start also, key features of value stocks include strong dividend yields, stable prices, and strong financial fundamentals. However, it's crucial to understand the nature of the valuable stocks in India through thorough research and examining factors like price-to-earnings ratios, free cash flow, and performance history of the company to understand the best investment opportunities. 

FAQs of Valuable Stocks in India

The features of valuable stocks in India include affordable prices, high dividends, stable prices, low valuations, and growth potential.

You can invest in valuable stocks in India through traditional stock market investing, exchange-traded funds (ETFs), or mutual funds focused on value stocks.

The risks associated with valuable stocks include focusing solely on low prices, ignoring fundamental analysis, overlooking market trends, and lacking a long-term investment strategy.

Yes, you can invest in valuable stocks in India through stock market apps like BlinkX, which offer screening tools, research, and educational resources for beginners.

You can diversify your portfolio by investing in multiple valuable stocks across various sectors to manage risks.