Piotroski 8/9 screen flags HDFC Bank, SBI, Kotak, Axis, NTPC

Quality screens aren't supposed to light up bank-heavy lists. That's why the latest Piotroski 8/9 screen matters. [HDFC Bank](/stock/HDFCBANK), [SBI](/stock/SBIN), [Kotak Mahindra Bank](/stock/KOTAKBANK), [Axis Bank](/stock/AXISBANK) and [NTPC](/stock/NTPC) all pass eight of nine fundamental health checks. They join TCS, Infosys and ITC, which already cleared the same bar on FairStock's Indian market screen. That's not a macro call. It's a stock-level signal. Five large-caps with price-to-earnings multiples from 10.39 for NTPC to 19.16 for Kotak Mahindra Bank. Quality screens often surface expensive compounders. This time the screen is finding names that trade at ordinary multiples. That changes the conversation for investors who've been hiding in expensive defensives. Piotroski 8/9 screen: how it works for banks Piotroski's model checks nine fundamental areas: profitability, return on assets, cash flow, changes in margins, asset turnover, and balance-sheet safety. FairStock's variant adjusts the checks for banks and financials, so a lender isn't marked down for normal borrowing. A score of 8/9 means the company is improving on most measures, not just reporting profit. For Indian banks, that's hard to do in this cycle. Deposit costs have risen faster than lending yields. Margins are compressed. Unsecured loan books have needed higher provisions. Against that backdrop, HDFC Bank, SBI, Kotak and Axis clearing 8/9 is a data point worth watching. HDFC Bank and SBI pass the Piotroski 8/9 screen [HDFC Bank](/stock/HDFCBANK) (NSE: HDFCBANK) has spent several quarters defending its net interest margin. The stock's P/E isn't as low as NTPC's, but it's well below the premium the bank commanded before merger-related cost digestion. The Piotroski 8/9 score says core operating quality hasn't slipped even as the stock consolidated. [SBI](/stock/SBIN) (NSE: SBIN) is more revealing. State-owned banks usually fail efficiency screens because of operating costs and uneven retur...