Synopsis:
Value stocks are shares of companies that are considered attractive based on their fundamentals, such as earnings, revenue, or assets. Investing in value stocks can potentially give good returns over the long term, as the market eventually recognises their true worth
In the short term, value stocks may not show significant gains and can remain stagnant or even decline in price. Therefore, value investing requires patience, a long-term perspective, and careful analysis of the company’s financial health and growth potential. While short-term profits may be limited, disciplined investment in value stocks can lead to substantial wealth creation over time.
Here are some value stocks to watch closely:
1. Infosys Limited
Infosys Limited is a global IT services company that provides technology-driven business solutions to clients worldwide. It offers a wide range of services, including consulting, software development, system integration, maintenance, and product.
It helps clients plan and execute their digital transformation strategies and has developed Finacle, a comprehensive banking solution used by large and medium-sized banks in India and abroad. The company has a market capitalization of Rs.6,00,581.03 crore, and closed at Rs.1,445.65,up by 0.25 percent from the previous close of Rs.1,442.05.
In Q1FY26, the company’s revenue from operations grew to Rs.42,279 crore from Rs.39,315 crore in Q1FY25, and in Q1FY26, net profit grew to Rs.6,924 crore from Rs.6,374 crore in Q1FY25.
Its return on equity is 28.8 percent, and return on capital employed is 37.5 percent. The company’s PE ratio stands at 28.40; the industry average is 39.82, which is cheap compared to its peer companies.
In the past few years, the company has given negative returns, but in the future, it has the potential to give better returns. The one-year return for the stock stands at negative 24 percent; however, the past 5-year return stands at 43 percent.
2. Computer Age Management Services Limited
CAMS Limited operates as a mutual fund transfer agent, offering services to investors, distributors, and asset management companies. They operate their own data centers on fully virtualized Hyper-Converged Infrastructure and manage the development and hosting of numerous applications and APIs
To enhance efficiency and productivity, the firm has implemented Robotic Process Automation bots. The company has a market capitalization of Rs.18,918.26 crore, and closed at Rs.3,822.15, up by 1.66 percent from the previous close of Rs.3,759.90.
In Q1FY26, the company’s revenue from operations grew to Rs.334 crore from Rs.308 crore in Q1FY25, and in Q1FY26, net profit grew to Rs.105 crore from Rs.102 crore in Q1FY25.
Its return on equity is 43.9 percent, and return on capital employed is 54.8 percent. The company’s PE ratio stands at 43.13, with the industry average of 53.46. In the past few years, the company has given negative returns, but in the future, it has the potential to give better returns. The one-year return for the stock stands at negative 17.63 percent; however, the past five-year returns stand at 182.05 percent.
3. Tanla Platforms Limited
Tanla Platforms Limited is a cloud communications company based in Hyderabad, India, that helps businesses connect with their customers. It operates globally as an A2P messaging platform provider.
The company has a market capitalization of Rs.9,154.58 crore, and closed at Rs.690.30, up by 5.22 percent from the previous close of Rs.656.05. In Q1FY26, the company’s revenue from operations grew to Rs.1,041 crore from Rs.1,002 crore in Q1FY25, and in Q1FY26, net profit slipped to Rs.118 crore from Rs.141 crore in Q1FY25. Its return on equity is 24 percent, and return on capital employed is 29.2 percent. The company’s PE ratio stands at 19.69, with the industry average of 32.49.
In the past few years, the company has given negative returns, but in the future, it has the potential to give better returns. The one-year return is 24.71 negative 24.71 percent; however, the past five-year return is 145.36 percent.
4. Coal India Limited
Coal India Limited is the world’s largest coal-producing company and one of India’s biggest employers. The company operates across 83 mining areas in eight states of India and manages 322 mines, including 138 underground, 171 opencast, and 13 mixed mines.
CIL also runs 13 coal washeries—11 for coking coal and 2 for non-coking coal—along with other facilities such as workshops and hospitals. It produces various grades of coking and non-coking coal for a wide range of industries, with the majority coming from opencast mines.
Its coal serves sectors like cement, fertilizers, brick kilns, and many other industries.The company has a market capitalization of Rs.2,39,730.13 crore, and closed at Rs.389, down by 0.27 percent from the previous close of Rs.390.05.
In Q1FY26, the company’s revenue from operations slipped to Rs.35,842 crore from Rs.36,465 crore in Q1FY25, and in Q1FY26, net profit also slipped to Rs.8,734 crore from Rs.10,944 crore in Q1FY25.Its return on equity is 38.9 percent, and return on capital employed is 48 percent. The company’s PE ratio stands at 7.35, with the industry average of 12.07.
In the past, the company has given negative returns, but in the future, it has the potential to give better returns. The one-year return is negative 23.12 percent; however, the past five-year returns are 233.43 percent.
Written by Jhanavi Sivakumar
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