Piotroski 8/9 Stocks: TCS, ITC, SBI at Low P/E

This screen of Piotroski 8/9 stocks has eight NSE large caps: [HDFC Bank](/stock/HDFCBANK) (NSE: HDFCBANK), [State Bank of India](/stock/SBIN) (NSE: SBIN), [Tata Consultancy Services](/stock/TCS) (NSE: TCS), [Infosys](/stock/INFY) (NSE: INFY), [Kotak Mahindra Bank](/stock/KOTAKBANK) (NSE: KOTAKBANK), [Axis Bank](/stock/AXISBANK) (NSE: AXISBANK), [ITC](/stock/ITC) (NSE: ITC), and [NTPC](/stock/NTPC) (NSE: NTPC). Each passes eight of nine checks on the Piotroski F-Score, a nine-point financial health test covering profits, cash flow, borrowings, margins and efficiency. The screen pairs that score with moderate earnings multiples. It doesn't reward expensive quality. Think of the Piotroski score as a medical checkup that ignores the stock price. Nine tests. A pass on eight means the income statement and balance sheet are doing what you'd want. Banks often trip on cash-flow-based checks because lending businesses work differently. So seeing HDFC Bank, SBI, Kotak and Axis at 8/9 is not a normal event. It's a reason to look at price before assuming the market has already paid up for quality. Low P/E Meets Piotroski 8/9: Stock-by-Stock Impact [Tata Consultancy Services](/stock/TCS) trades near 24 times trailing earnings. [Infosys](/stock/INFY) sits closer to 22 times. Both have high return on equity and generate more cash than net income suggests. The 8/9 score matters, but it won't fix a slow IT spending quarter. What you pay for that quality is now more reasonable than it was in 2021. For reference, the Nifty 50 trades around 20 times trailing earnings, so even Infosys at 22 times is not a demanding multiple for its cash generation. Among banks, [State Bank of India](/stock/SBIN) stands out near 10 times trailing earnings. [HDFC Bank](/stock/HDFCBANK) is near 19 times, [Kotak Mahindra Bank](/stock/KOTAKBANK) near 20 and [Axis Bank](/stock/AXISBANK) near 13. High F-Scores for banks usually reflect improving return on assets and contained bad loan provisions. That's th...