Value Investing Portfolio
Medium RiskBuy undervalued, sell at fair value
Inspired by Benjamin Graham and Warren Buffett. Find fundamentally strong companies trading below intrinsic value due to temporary market pessimism.
Investment Philosophy
Value investing seeks stocks where the market price is significantly below the company's intrinsic value — calculated through discounted cash flows, asset value, or earnings power. The 'margin of safety' protects against permanent capital loss.
Selection Criteria
- ✓ P/E ratio below industry median or below 20
- ✓ P/B ratio below 2.5 (Graham's criterion)
- ✓ Dividend yield > 1.5% (signals cash flow strength)
- ✓ Debt-to-equity < 1.0
- ✓ Earnings growth positive for at least 3 of 5 years
Top 5 Picks
| # | Stock | Sector | CMP (₹) | P/E | ROE (%) | Div Yield | Cap |
|---|---|---|---|---|---|---|---|
| 1 | ITC ITC | FMCG / Diversified | ₹445 | 24.8 | 29.5% | 3.2% | Large Cap |
| 2 | Coal India COALINDIA | Mining | ₹395 | 7.2 | 52.8% | 5.8% | Large Cap |
| 3 | NTPC NTPC | Power / Utilities | ₹358 | 15.2 | 12.8% | 2.5% | Large Cap |
| 4 | Vedanta VEDL | Metals & Mining | ₹442 | 14.5 | 25.8% | 6.5% | Large Cap |
| 5 | ONGC ONGC | Oil & Gas | ₹265 | 8.5 | 15.2% | 4.2% | Large Cap |
1. ITC
ITC · FMCG / Diversified
CMP
₹445
P/E
24.8
ROE
29.5%
Div
3.2%
Trades at a discount to FMCG peers (HUL at 55x P/E). FMCG business growing 12%+ with improving margins. Hotels and agri segments provide diversification. Consistent dividend payer.
2. Coal India
COALINDIA · Mining
CMP
₹395
P/E
7.2
ROE
52.8%
Div
5.8%
Trading at just 7x earnings with 50%+ ROE. India's coal demand growing at 5-6% annually. Government backing ensures stable operations. Highest dividend yield among large caps.
3. NTPC
NTPC · Power / Utilities
CMP
₹358
P/E
15.2
ROE
12.8%
Div
2.5%
India's largest power generator at 15x PE vs sector re-rating. Green energy capex of ₹1 lakh Cr planned. Regulated returns provide earnings visibility. Strong order book.
4. Vedanta
VEDL · Metals & Mining
CMP
₹442
P/E
14.5
ROE
25.8%
Div
6.5%
Diversified metals & mining at 14.5x earnings. Aluminium, zinc, and oil & gas provide commodity diversification. High dividend yield of 6.5%. Beneficiary of China+1 trend.
5. ONGC
ONGC · Oil & Gas
CMP
₹265
P/E
8.5
ROE
15.2%
Div
4.2%
India's largest oil producer at just 8.5x earnings. Strategic asset with irreplaceable reserves. Government subsidy burden reducing. KG Basin production ramp-up expected.
Why These Stocks?
1. ITC (ITC)
Trades at a discount to FMCG peers (HUL at 55x P/E). FMCG business growing 12%+ with improving margins. Hotels and agri segments provide diversification. Consistent dividend payer.
2. Coal India (COALINDIA)
Trading at just 7x earnings with 50%+ ROE. India's coal demand growing at 5-6% annually. Government backing ensures stable operations. Highest dividend yield among large caps.
3. NTPC (NTPC)
India's largest power generator at 15x PE vs sector re-rating. Green energy capex of ₹1 lakh Cr planned. Regulated returns provide earnings visibility. Strong order book.
4. Vedanta (VEDL)
Diversified metals & mining at 14.5x earnings. Aluminium, zinc, and oil & gas provide commodity diversification. High dividend yield of 6.5%. Beneficiary of China+1 trend.
5. ONGC (ONGC)
India's largest oil producer at just 8.5x earnings. Strategic asset with irreplaceable reserves. Government subsidy burden reducing. KG Basin production ramp-up expected.
Strategy Details
- Time Horizon
- 3–5 years
- Risk Level
- Medium
- Ideal For
- Investors comfortable with short-term underperformance who trust fundamental analysis over market sentiment.
- Number of Stocks
- 5