ITC, NTPC Piotroski 8/9: Lower P/E Than Infosys, TCS

Two Nifty 50 heavyweights with Piotroski F-Score readings of 8/9 are trading below the multiples their quality usually commands. [ITC](/stock/ITC) (NSE: ITC) and [NTPC](/stock/NTPC) (NSE: NTPC) both clear FairStock.ai's quality screen with scores above 70, matching [Infosys](/stock/INFY) and [TCS](/stock/TCS) on the F-Score while carrying lower P/E ratios. ITC trades at 17.57 times earnings with a return on equity of 49.8%. NTPC is cheaper at 10.39 times earnings, though its ROE is a regulated-utility-like 12.9%. The spread between those multiples and the IT sector's historical pricing is wide enough to matter for value and dividend portfolios. F-Score Quality at a Value Price The Piotroski F-Score tests nine accounting-based signals: profitability, operating cash flow, efficiency, and balance-sheet changes. An 8/9 reading is rare. It says operating income is real, margins have improved, asset turnover is up, and debt has not expanded against the balance sheet. For ITC, the score confirms what the 49.8% ROE already suggests: cash generation remains strong even as the cigarette business faces regulatory pressures and FMCG absorbs capital. NTPC's 8/9 is different in texture. Its 12.9% ROE is not flashy. But the score captures improving accruals, positive operating cash flow, and lower debt-led stress. Regulated power assets do not generate high ROE, so the F-Score usefully separates stable operators from debt-heavy ones. Debt ratios matter here more than margin expansion. Both stocks carry FairStock Scores above 70. That threshold tends to flag companies with persistent operating performance rather than one-off earnings hits. How ITC and NTPC Stack Up Against IT Peers Infosys and TCS are quality benchmarks in Indian large caps. Their F-Scores often sit at 7 or 8. Yet investors pay up because IT services earnings are dollar-linked and less cyclical. ITC doesn't get that treatment. The market prices it as a tobacco company with an FMCG drag, not as the owner of a...