Piotroski 8/9 Low P/E: TCS, ITC, SBI Lead India Quality Screen

A Piotroski F-Score of 8/9 plus a low P/E is supposed to be a rare combination. Right now eight NSE names carry that mark, and they all trade at undemanding earnings multiples. TCS sits at 17.15 P/E with 47.7% ROE and 64.6% ROCE. ITC trades at 17.57 P/E with 49.8% ROE. SBI is at 11.42 P/E with 15.2% ROE. That is a quality screen with a value tilt. But here is the uncomfortable part. Joseph Piotroski built his nine-point checklist for non-financial companies. Banks don't have the same accruals or inventory. Four of the eight names in this screen are banks: [NSE: HDFCBANK](/stock/HDFCBANK), [NSE: SBIN](/stock/SBIN), [NSE: KOTAKBANK](/stock/KOTAKBANK), and [NSE: AXISBANK](/stock/AXISBANK). You cannot just apply the same test and walk away. What the screen gets right [NSE: TCS](/stock/TCS) is not cheap in absolute terms. 17.15 times earnings is below its own five-year average, but revenue growth has cooled from the post-COVID rush. The F-Score still rewards TCS because return on assets is high and leverage is low. [NSE: ITC](/stock/ITC) is a different animal. 49.8% ROE at 17.57 P/E looks like a value anomaly. The screen likes improving gross margins. It does not care about cigarette tax headlines. [NSE: SBIN](/stock/SBIN) is the most contested name. 15.2% ROE is not high. But the bank has spent two years repairing its book. Provision coverage is better. Return on assets has improved. That is exactly what the F-Score catches. [NSE: HDFCBANK](/stock/HDFCBANK) also shows up. It has long traded at a premium to SBI. Now both sit in the same 8/9 basket. That challenges the usual story that HDFC Bank is quality and SBI is not. Why low P/E plus 8/9 is not a free lunch The screen has blind spots. F-Score works on trailing financials. It does not forecast demand. ITC's 17.57 P/E may already reflect slower cigarette volume growth and FMCG margin pressure. [NSE: NTPC](/stock/NTPC)'s inclusion is less surprising. Power utilities have steady cash flow, but return on equity can ...