Value Stocks Rise But Bargains Hard To Find: ISec

Thu, 20 March 2025

15:58

A recent market correction has increased the number of 'investable value' stocks but deep bargains are hard to find, according to a report by ICICI Securities (ISec).

The percentage of 'investable value' stocks -- those offering favourable returns relative to bond yields -- has risen moderately to 16 per cent among the top 1,000 companies.

This is up from recent lows but still below the long-term average of 24 per cent.

ICICI Securities designates a stock as 'investable' if its earnings yield exceeds the bond yield and it offers a return on equity (RoE) of at least 14 per cent.

The report highlighted an improving landscape for equity investing compared to bonds. The risk premium, measured as the spread between earnings yield and average bond yields, has narrowed from a 130 basis points (bps) discount in July 2024 to just 25 bps.

With the Nifty 50 index's forward earnings yield at 5.24 per cent against an average India bond yield of 5.48 per cent, stocks are gradually approaching value territory.

-- Business Standard

TOP STORIES

IPL PIX: Noor, Ravindra power CSK to victory

Images from the IPL 2025 match between Chennai Super Kings and Mumbai Indians on Sunday.

Cash row: HC report, SC video cast doubt on DFS claim

A video and inquiry report have raised questions about the Delhi Fire Services' claim that no cash was found at the official residence of Delhi High Court judge Justice Yashwant Varma during a fire incident on March 14. The video, which...

Cash row: Probe in key stage, findings to decide fate

A three-member panel led by the Chief Justice of India (CJI) Sanjiv Khanna has been formed to probe the discovery of "four to five semi-burnt sacks" of Indian currency notes found after a fire at the residence of Delhi High Court judge...

CJI forms probe panel after HC CJ's report, cop video

The Chief Justice of India (CJI) Sanjiv Khanna has ordered an in-house inquiry into allegations against a Delhi High Court judge, Justice Yashwant Varma, after reports of burnt cash being found at his residence. The inquiry will be...

PIX: Kishan slams century as SRH down Royals

Sunrisers Hyderabad buried Rajasthan Royals under a deluge of runs to start its IPL 2025 campaign in thumping fashion with a 44-run win in Hyderabad on Sunday.