Piotroski 8/9: TCS, Infosys, ITC Hit Quality Screen

Piotroski 8/9 Stocks: Where Quality Meets a Reasonable Price The Piotroski F-Score is one of the most battle-tested fundamental filters in quantitative investing. A score of 8 or 9 out of 9 means a company is passing nearly every balance-sheet health check: improving profitability, cleaner debt ratios, and stronger operating efficiency. When that signal combines with a low price-to-earnings multiple, you get a rare setup — quality at a price the market hasn't fully recognized yet. Right now, [TCS](/stock/TCS), [Infosys](/stock/INFY), and [ITC](/stock/ITC) are sitting exactly at that intersection. NSE: TCS posts an ROE of 47.7% and ROCE of 64.6% while trading at a P/E of just 17.15x. Most Indian businesses wouldn't touch those return numbers in a decade. NSE: INFY runs an ROE of 32.0% at a P/E of 15.13x. NSE: ITC combines an ROE of 49.8% with a P/E of 17.57x. All three carry a Piotroski score of 8/9. To put it plainly: these are businesses generating exceptional returns on capital, and the market is pricing them as if they're ordinary. ROE measures how efficiently a company turns shareholder money into profit. An ROE above 20% is generally considered strong. TCS at 47.7% and ITC at 49.8% are in a different league entirely. You can buy either at a P/E below 18x while the Nifty 50 itself trades closer to 22-23x earnings. That gap is worth sitting with. Sector Breakdown: IT and FMCG Lead, Banks Follow The IT sector's representation here isn't a coincidence. TCS and Infosys earn in dollars, which provides a natural hedge against rupee depreciation, and both carry minimal debt. The Piotroski framework rewards exactly this profile: asset-light, cash-generative businesses with improving margins. What's changed recently is valuation compression. The IT sector sold off through 2022-2023 on fears of a US slowdown cutting enterprise tech budgets. Those fears were real, but the underlying businesses didn't deteriorate, and the scores reflect that. ITC is a different story ...