Which is the most undervalued stock in Nifty 50?

Stocks
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NSE provides a strategy indices which mainly focuses on creating different basket of stocks and grouping them together based on variable metrics like growth, under valued, alpha, volatility etc. In order to track most undervalued stocks from Nifty 50, there is a strategy index called NIFTY50 Value 20.

The NIFTY50 Value 20 Index is designed to reflect the behaviour and performance of a diversified portfolio of value companies forming a part of NIFTY 50 Index.

This index consists of 20 companies which are selected on the basis of following parameters

  1. Return on Capital Employed (ROCE),
  2. Price-Earnings (PE),
  3. Price to Book Value (PB) and
  4. Dividend yield (DY)

Basically Companies with relatively lower PE and PB, while higher DY and ROCE are selected. Here’s top 10 most undervalued stock that are part of Nifty 50 based on above selection criteria.

Here’s the performance metrics of this Nifty50 value 20 stocks, this has relatively done well than the broader Index.

Next time if you want to get the list of Nifty 50 undervalued stocks, just go to

https://www.niftyindices.com/indices/equity/strategy-indices/nifty-50-value-20

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HUL undervalued at PE of 58?

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  • FMCG companies always have a high PE
  • India is developing economy and hence when majority of the people are lifted up from poverty invariably they’ll create huge demad for FMCG products.
  • HUL is company is owned by British company Unilever and hence FII and DII trust HUL management.
  • Being the biggest FMCG company in India and also they are consistently increasing their profit.
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In a class there are 50 students. If a student is scoring low marks why should I buy him ?

Do you have any stats to show that buying undervalued shares of nifty 50 will fetch profit?

“ this has relatively done well than the broader Index”. I am questioning this statement

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