Investable Value Stocks’ Population Dwindles To Historical Low Within Mid/Small-Caps: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.The proportion of ‘investable value stocks’ (return on equity more than 14% and earnings yield more than bond yield) within the top-1,000 universe has halved to ~7.6%, from 15% over the last one year, largely led by micro-caps, small-caps and mid-caps in descending order (cycle low was made in Dec-17 at 6%). However, proportion of ‘investable value stocks within large-caps remained steady, at 14%, over the past year. Our framework for identifying value stocks includes a combination of parameters that spots:unwarranted market pessimism about ‘long-term prospects’ as measured by our proprietary ‘market-implied long-term growth value’ framework;scenarios where earnings yield comes up above bond yield; and attractive price/book ratios relative to the stock’s RoE profile..Value traps are avoided by filtering out sharp earnings downgrades, or relative underperformance, while keeping a qualitative check in terms of a fundamental Buy/Add rating from our sector coverage team..Click on the attachment to read the full report:.Bharat Dynamics - Execution Likely To Pick Up: ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Investable Value Stocks’ Population Dwindles To Historical Low Within Mid/Small-Caps: ICICI Securities

More in the large-cap hat: ‘Investable value stocks’ still exist

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Investable Value Stocks’ Population Dwindles To Historical Low Within Mid/Small-Caps: ICICI Securities

More in the large-cap hat: ‘Investable value stocks’ still exist

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