2 hrs ago

Five Indian Value Stocks Show Earnings and Valuation Strength

The article examines five Indian companies whose shares appear inexpensive compared with past valuations or industry peers.

Life Insurance Corporation of India is a large insurer with strong premium income and profit growth.

Power Finance Corporation lends money to electricity companies and is expanding its loan assets.

NTPC produces electricity and is investing heavily in renewable and nuclear power.

Tata Motors sells commercial vehicles and is growing sales in India and overseas.

Hindustan Zinc mines and processes zinc, lead and silver.

Each company recently reported positive business or cash-flow figures.

However, a cheap share price does not automatically make a company a good investment.

Investors are advised to study financial performance, governance and growth plans before making decisions.

Key facts

Companies covered: Life Insurance Corporation of India, Power Finance Corporation, NTPC, Tata Motors and Hindustan Zinc
LIC valuation: Price-to-book ratio of 2.6, versus a four-year historical median of 6.6 and life-insurance sector median of 7.2
PFC valuation: Price-to-book ratio of 0.8, versus an NBFC sector median of 2.1
NTPC valuation: Price-to-earnings ratio of 11.2, versus a historical median of 13.2 and industry ratio of 21.4
Tata Motors results: Quarterly sales increased 26% to 108,700 units; free cash flow was Rs 11 billion and net cash was Rs 71 billion
Hindustan Zinc results: Revenue rose 77% to Rs 137.5 billion, net profit rose 145% to Rs 54.7 billion, and free cash flow exceeded Rs 52 billion
Investment caveat: The article says it is informational, not a stock recommendation, and urges investors to assess fundamentals, governance and growth strategies

financialexpress.com · 2 hrs ago