Piotroski 8/9 Large Caps Meet Undemanding P/E

Eight Nifty large caps just printed an 8/9 on the Piotroski F-Score. That is not a statistical rounding error. The nine-point screen checks operating cash flow, ROA, debt ratios, liquidity, share dilution. It also checks gross margin and asset turnover. A cluster of 8/9 prints in the large-cap universe is rare. The most visible name: [Tata Consultancy Services](/stock/TCS) (NSE: TCS). TCS pairs that 8/9 with a trailing P/E of 17.15 and an ROE of 47.7%. Read that again. 47.7% ROE at 17.15 times earnings. That is a quality franchise priced like a regulated utility. Why does the market pay that price? The obvious answer is revenue growth. TCS has been printing low single-digit constant currency growth. The Piotroski score cannot predict demand recovery in US banking and retail clients. But the score does say the balance sheet is not hiding stress. Either the growth slump is permanent, or the stock has already priced a permanent slump. The market assumes the first. The data support the second with patience. Piotroski 8/9 hits banks and IT heavyweights The screen did not stop at TCS. [Infosys](/stock/INFY) (NSE: INFY) also appears with an 8/9. Consensus models put Infosys near 19-20x FY26 earnings. That is not expensive, but the market wants revenue acceleration before it pays a growth multiple. The screen says the financial plumbing is intact. The bank list is longer: [HDFC Bank](/stock/HDFCBANK) (NSE: HDFCBANK), [State Bank of India](/stock/SBIN) (NSE: SBIN), [Kotak Mahindra Bank](/stock/KOTAKBANK) (NSE: KOTAKBANK), and [Axis Bank](/stock/AXISBANK) (NSE: AXISBANK). Four banks scoring 8/9. That raises an uncomfortable question. Is the screen rewarding post-credit-cycle repair that is already reflected in price? Or are bank valuations still anchored to old fears? SBI is the outlier. It combines a state-bank governance discount with a clean score. If you believe the Piotroski score, SBI's reported net profit of ₹61,077 crore in FY24 was not a one-off. [NTPC](/stock/...