Kotak Bank, NTPC Piotroski 8/9 with moderate multiples

Kotak Mahindra Bank and NTPC have each passed eight of nine Piotroski F-Score checks, placing both names in the top fundamental cohort at moderate trailing multiples. [Kotak Mahindra Bank](/stock/KOTAKBANK) (NSE: KOTAKBANK) trades at 19.16 times earnings with an 11.2% return on equity. [NTPC](/stock/NTPC) (NSE: NTPC) trades at 10.39 times earnings with a 12.9% return on equity. For investors who follow the F-Score, an 8/9 reading usually means fewer negative earnings revisions over the next six months. That's the core signal here, and it arrives while Indian equities are still repricing rate-sensitive and power utility exposure after a volatile quarter for crude oil and US Treasury yields. The Piotroski screen is not a momentum tool. It checks nine binary accounting signals across profitability, balance sheet quality, operating efficiency and liquidity. A score of 8 means only one flag. Kotak's score benefits from improving return on assets and positive operating cash flow, plus a cleaner non-performing asset pool. NTPC's score reflects higher gross margins and better asset turnover, with steady cash generation from its regulated thermal fleet. Neither stock is expensive on the way in. That combination is rare in a market where quality often trades at 25 to 30 times earnings. What an 8/9 Piotroski Score Means for Kotak Bank Kotak's 19.16 P/E is below the bank's own five-year average, which sat closer to 24 times between 2020 and 2023. At 11.2% ROE, the bank still trails some private peers on return ratios, but the F-Score says the direction is improving. If deposit costs peak in early FY26 and the Reserve Bank of India delivers a shallow rate cut cycle, Kotak's net interest margin could stabilise faster than the market expects. That's a conditional view, not a forecast. The bank would benefit from lower mark-to-market pressure on its bond book and from any revival in corporate credit demand. However, the single failed Piotroski check deserves attention. For bank...