Piotroski 8/9: HDFC Bank, SBI, Axis Bank at Low P/Es

Piotroski 8/9 Banks Trade at Undemanding Multiples Three of India's most closely watched banks have cleared one of fundamental analysis's stricter filters. [HDFC Bank](/stock/HDFCBANK) (NSE: HDFCBANK), [State Bank of India](/stock/SBIN) (NSE: SBIN), and [Axis Bank](/stock/AXISBANK) (NSE: AXISBANK) each carry a Piotroski F-Score of 8 out of 9, placing them among just eight stocks on FairStock.ai's current screener to hit that threshold. What sharpens the case is where their price-to-earnings ratios sit: HDFC Bank at 15.90x, SBI at 11.42x, and Axis Bank at 13.70x. That's not distressed-stock territory, but it's meaningfully below the multiples that Indian equities have commanded through much of the post-pandemic cycle. The Piotroski F-Score, developed by Stanford accounting professor Joseph Piotroski in 2000, runs nine binary checks across profitability, debt load, and operating efficiency. A score of 8 or 9 signals broad-based fundamental health. Not perfection in any single metric, but consistent strength across the balance sheet. For banks, where asset quality, capital adequacy, and earnings consistency are the variables that matter most, hitting 8/9 carries real weight. It cuts through the noise. The timing matters too. Indian banking sector valuations have compressed relative to the broader Nifty 50 over the past 18 months, partly on concerns about deposit cost pressures and the pace of credit growth normalization. That compression is what makes the Piotroski signal interesting right now. It's appearing at prices that don't demand heroic assumptions about future earnings. What the Numbers Actually Say SBI leads the trio on return on equity at 15.2%, which for a public sector bank of its scale (total assets exceeding Rs 61 lakh crore as of FY24) represents a materially different institution than the SBI of a decade ago. The NPA cleanup cycle that began around 2018 has largely run its course, and the bank's credit cost trajectory has normalized. At 11.42x earn...