Piotroski 8/9: ITC, Infosys, Axis Bank Trade Cheap

I usually yawn at high Piotroski screens. Most results are small caps with thin trading volume or a single year of improving margins. This screen is different. [NSE: ITC](/stock/ITC) scores 8 out of 9 on the Piotroski F-Score. [NSE: INFY](/stock/INFY) scores 8 out of 9. [NSE: AXISBANK](/stock/AXISBANK) scores 8 out of 9. ITC trades at 17.57 times trailing earnings. Infosys trades at 15.13. Axis Bank trades at 13.70. ITC's return on equity is 49.8%. Infosys shows 32.0%. Axis Bank has 13.4%. An 8/9 Piotroski F-Score with mid-teen P/E ratios is rare in Indian large caps. The Nifty 50 trades near 20 times trailing earnings, so these three carry a discount. I see the value case. But I want to know which of the nine signals failed. That tells me where the fragility sits. What a Piotroski 8/9 Score Actually Measures The F-Score has nine signals. It checks profitability. It checks balance sheet health. It checks operating efficiency. An 8/9 means the company cleared almost all of them. This is a quantitative screen, not a growth story. Take [NSE: ITC](/stock/ITC). The stock trades at 17.57 times trailing earnings. That is below many consumer staples peers. [Hindustan Unilever](/stock/HINDUNILVR) often trades above 45 times earnings. ITC's 49.8% ROE reflects years of buybacks that shrank the equity base. The market still treats it as a cigarette cash cow with a food business attached. I think that view is fair. Take [NSE: INFY](/stock/INFY). The stock trades at 15.13 times earnings. For much of 2015 to 2020, Infosys commanded 20 times or more. Its ROE of 32.0% is high for IT services. The market is pricing in weak discretionary tech spending. If IT budgets recover, this P/E looks undemanding. Now take [NSE: AXISBANK](/stock/AXISBANK). Its P/E is 13.70. That is below [ICICI Bank](/stock/ICICIBANK) and [HDFC Bank](/stock/HDFCBANK), which often trade between 17 and 19 times earnings. Axis Bank's ROE of 13.4% is lower than ICICI Bank's mid-teens ROE. The discount makes sen...