Piotroski 8/9: NTPC, Axis Bank & Kotak at Low P/Es

Piotroski 8/9 Stocks Trading at Value Multiples The Piotroski F-Score screen doesn't flatter companies. It runs nine binary tests across profitability, debt load, and operating efficiency, each scored zero or one. A score of 8 or 9 means a company is passing nearly every fundamental health check available on the balance sheet. Right now, three of India's largest listed companies — [NTPC](/stock/NTPC), [Axis Bank](/stock/AXISBANK), and [Kotak Mahindra Bank](/stock/KOTAKBANK) — sit at 8/9, and none of them are trading at the kind of multiples that would normally accompany that signal. NSE: NTPC is the standout number here. A Piotroski score of 8/9 paired with a P/E of just 10.39x is the kind of combination that makes a quality-at-a-price screen worth running in the first place. India's largest power generator by installed capacity has benefited from the country's sustained infrastructure push, and its earnings have reflected that. Yet the market is pricing it as though the growth story is already over. It isn't. NSE: AXISBANK at 13.70x earnings and NSE: KOTAKBANK at 19.16x round out the trio. These weren't flagged in yesterday's coverage of the Piotroski signal. That omission is worth correcting, because banking sector names at these multiples with this level of balance-sheet health don't appear together often. What the F-Score Actually Tells You About These Three Joseph Piotroski designed the F-Score in 2000 specifically to separate fundamentally strong companies from weak ones within value screens. The nine criteria cover return on assets, operating cash flow, change in debt load, current ratio movement, share dilution, gross margin trajectory, and asset turnover. Scoring 8 out of 9 means a company is improving or holding firm across almost every dimension that matters to a credit analyst or a long-horizon equity investor. For NTPC, the score reflects consistent positive operating cash flow, improving return on assets, and controlled debt levels. That's notabl...