TCS, Infosys, ITC Score 8/9 Piotroski

Three Indian large caps just passed one of the strictest quality filters in fundamental analysis. TCS, Infosys and ITC score 8/9 on the Piotroski F-Score with double-digit ROE. That's a balance-sheet and earnings-quality check, not a valuation shortcut. Think of the Piotroski F-Score as a nine-point physical for a company's financial statements. It checks whether profitability is improving. It checks whether debt is under control. It also checks whether operating cash flow backs reported profit. A score of 8 or 9 puts a stock in the top tier of this screen. It does not mean the stock is cheap or about to rally. Here's the raw data for the three names I track on FairStock.ai: | Stock | P/E | ROE | Piotroski F-Score | |---|---:|---:|---:| | [TCS](/stock/TCS) (NSE: TCS) | 17.15 | 47.7% | 8/9 | | [Infosys](/stock/INFY) (NSE: INFY) | 15.13 | 32.0% | 8/9 | | [ITC](/stock/ITC) (NSE: ITC) | 17.57 | 49.8% | 8/9 | For context, many fund managers treat 15% ROE as a strong number. These three are running at more than double that. The P/E ratios are also not stretched by Indian large-cap standards. How the Market Is Treating the Three Names IT services and FMCG don't trade as one block. TCS and Infosys depend on global IT budgets and deal ramp-ups. ITC is a different animal. It has cash-rich tobacco and a growing FMCG arm, with a separate hotel business attached. So the same 8/9 score has different drivers. Infosys trades at 15.13 times earnings, the cheapest of the three, but it also has the lowest ROE at 32.0%. That's not a weak number in absolute terms. It simply shows the Street is pricing in slower growth or more client caution. TCS gets a premium at 17.15 times earnings because its return profile is both high and consistent. ITC sits at 17.57 times earnings with a 49.8% ROE, but that ROE is heavily tied to the tobacco business. Some institutional funds will not own that business, which keeps the multiple in check. TCS and Infosys have historically moved together, b...