7 Best Value Stocks To Buy In India For 2025
Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations.
Identifying the best value stocks can be a key strategy for long-term success when building an investment portfolio. Value stocks are shares of companies that appear undervalued based on fundamental analysis, offering investors an opportunity to buy into strong businesses at a discount.
These stocks typically boast low price-to-earnings (P/E) and price-to-book (P/B) ratios, high dividend yields, and stable financial performance. By focusing on companies with solid fundamentals that are temporarily out of favor with the market, value investors aim to capitalize on the potential for price appreciation as the actual value of these stocks becomes recognized.
In this pursuit, understanding the essential characteristics and market context of value stocks is crucial for identifying the best opportunities.
Featured Partner Offer
Account opening charges
INR 0 for first year
INR 0 on equity delivery
Zero Commission on Mutual Fund Investments, 24/7 Order Placement
On Angleone’s secure website
INR 999 one-time fee
INR 0 brokerage for life
No order limit, Paperless onboarding
Multiple Award-Winning Broker
Listed On Deloitte Fast 50 index, 2022 Best Global FX Broker – ForexExpo Dubai October 2022 & more
Best-In-Class for Offering of Investments
Trade 26,000+ assets with no minimum deposit
24/7 dedicated support & easy to sign up
On BlackBull Market’s secure website
- List for the Best Value Stocks
- Top Value Stocks in India
- Infosys
- Tanfac Industries
- Wealth First Portfolio Managers
- Tata Elxsi
- TAAL Enterprises
- ABSL AMC – Aditya Birla Sun Life AMC
- Glenmark Life
- What are Value Stocks?
- Characteristics of Value Stocks
- Why Invest in Value Stocks
- Risks Associated with Value Stocks:
Penny Stocks To Watch Out For
- Best Penny Stocks
- Penny Stocks In India Below 1 Rupee
- Multi Bagger Penny Stocks For 2025
- Best Trading App
- Best Investment Options In India
- Best Equity Mutual Funds
- Highest Dividend Paying Stocks
- Upcoming Bonus Shares
- Why Adani Shares Are Falling
- Why Is Tata Motors Share Price Falling
- XIRR In Mutual Fund
List for the Best Value Stocks
Top Value Stocks in India
FEATURED PARTNER OFFER
Infosys
Current Price
One Year Highest and Lowest
Price-to-Earnings
Current Price
One Year Highest and Lowest
Price-to-Earnings
Reasons to Invest
Stable Market Position:
Infosys, a leading IT consulting and software services industry player, has a strong market presence and a market capitalization of INR 6,89,728 cr, making it the second-ranked company in its sector. The company’s consistent performance and reputation for delivering high-quality IT solutions contribute to its stable market position.
Low Valuation Metrics:
Infosys’s P/E ratio is 26.29, which is relatively moderate for a large-cap IT company. This indicates that while the company is valued higher than typical value stocks, it is still reasonably priced compared to its earnings, reflecting investor confidence in its continued profitability.
High Dividend Yield:
With a dividend yield of 2.77%, Infosys offers a higher return on dividends than many other IT companies. This yield provides a steady income stream to investors, making it an attractive choice for those seeking growth and income.
Historical Performance:
Infosys has demonstrated robust long-term performance, with a 1-year return of 24.92%, a 3-year return of 6.46%, and a remarkable 5-year return of 131.56%. These figures highlight the company’s ability to generate significant shareholder returns over various time horizons.
Market Resilience:
The stock’s beta of 0.83 suggests lower volatility than the broader market, indicating that Infosys is less affected by market fluctuations. This resilience can particularly appeal to investors looking for stable investments in the IT sector.
Difficulties and Risks
Topline Contraction:
Although Infosys has shown overall growth, there have been quarters with minimal or negative growth, such as a -0.04% growth in December 2023 and a -2.49% growth in March 2023. These periods of contraction can raise concerns about the company’s ability to sustain consistent growth.
Bearish Trend Signals:
Despite its overall positive performance, Infosys’s stock price shows fluctuations, such as a recent increase of 0.87% to INR 1,661.65. While this indicates short-term bullish sentiment, the stock has not yet reached its 52-week high of INR 1,733.00, suggesting potential resistance levels.
Market Dependency:
As a major player in the IT consulting and software industry, Infosys heavily relies on global IT spending and economic conditions. Any downturn in these areas can impact the company’s revenue and profitability, posing a risk to investors.
Regulatory Environment:
Infosys operates in multiple countries, subjecting it to various regulatory environments and compliance requirements. Regulation changes can impact the company’s operations and financial performance, especially in key markets like the US and Europe.
Market Competition:
The IT consulting and software services industry is highly competitive, with numerous global players vying for market share. Infosys must continuously innovate and maintain high service standards to stay ahead of its competitors and retain its client base.
FEATURED PARTNER OFFER
Tanfac Industries
Current Price
One Year Highest and Lowest
Price-to-Earnings
Current Price
One Year Highest and Lowest
Price-to-Earnings
Reasons to Invest
Stable Market Position:
Tanfac Industries, with a market capitalization of INR 2,422.13 cr, is prominent within its sector, ranking 41st by market cap. The company’s ability to generate substantial returns over the past five years highlights its stable market presence and effective business strategy.
Low Valuation Metrics:
Despite a high P/E ratio of 46.12, Tanfac Industries has demonstrated strong earnings potential, with an EPS of INR 52.64. The company’s valuation suggests that investors are willing to pay a premium for its earnings, indicating confidence in its future growth prospects.
High Dividend Yield:
While the dividend yield of 0.29% is relatively low, it still provides a modest income stream to shareholders. The company’s focus on reinvesting earnings into the business rather than distributing high dividends could be indicative of its growth-oriented approach.
Historical Performance:
Tanfac Industries has shown remarkable performance over the long term, with a 1-year return of 23.11%, a 3-year return of 783.46%, and an astounding 5-year return of 1582.16%. These returns underscore the company’s ability to deliver substantial value to its shareholders over time.
Market Resilience:
With a beta of 0.27, Tanfac Industries exhibits low volatility, suggesting that its stock price is less affected by broader market fluctuations. This resilience can be desirable to investors seeking stability in their investments.
Difficulties and Risks
Topline Contraction:
The company has experienced fluctuations in its total income, with a significant decline of -23.66% in September 2023 and -10.78% in June 2023. These periods of contraction could raise concerns about the company’s ability to maintain consistent revenue growth.
Bearish Trend Signals:
The recent decrease in Tanfac Industries’ share price by 2.94% to INR 2,428.20 indicates potential bearish sentiment. Such short-term declines could be reflective of market uncertainties or underlying challenges within the company.
Market Dependency:
Tanfac Industries’ performance is closely tied to market conditions within its industry. Economic downturns, changes in consumer demand, or disruptions in the supply chain can significantly impact the company’s revenue and profitability.
Regulatory Environment:
Operating in a highly regulated sector, Tanfac Industries is subject to various compliance requirements and regulatory changes. Any shifts in regulations, particularly those related to environmental standards and industrial safety, can pose risks to the company’s operations.
Market Competition:
The industry in which Tanfac Industries operates is highly competitive, with numerous players striving for market share. The company must continuously innovate and optimize its operations to stay ahead of competitors and maintain its market position.
FEATURED PARTNER OFFER
Wealth First Portfolio Managers
Current Price
One Year Highest and Lowest
Price-to-Earnings
Current Price
One Year Highest and Lowest
Price-to-Earnings
Reasons to Invest
Stable Market Position:
Wealth First Portfolio Managers has established a significant presence in the financial services industry. With a market capitalization of INR 887.77 cr, it ranks 43rd in its sector. The company’s consistent income growth and robust financial performance indicate a stable market position.
Low Valuation Metrics:
With a P/E ratio of 20.80 and an EPS of INR 40.06, Wealth First Portfolio Managers is reasonably priced relative to its earnings. This valuation suggests that the stock may be undervalued, providing a potential opportunity for value investors.
High Dividend Yield:
While the company currently has a dividend yield of 0.00%, it is important to note that Wealth First Portfolio Managers may be reinvesting its earnings to fuel future growth. This reinvestment strategy can be beneficial for long-term investors looking for capital appreciation.
Historical Performance:
Wealth First Portfolio Managers has delivered impressive returns, with a 1-year return of 153.87% and a 3-year return of 390.26%. These figures highlight the company’s ability to generate substantial value for its shareholders over the medium to long term.
Market Resilience:
Although the stock has no reported beta, its significant returns and consistent income growth suggest resilience in varying market conditions. The company’s ability to maintain strong financial performance despite market fluctuations can be attractive to investors seeking stability.
Difficulties and Risks
Topline Contraction:
Wealth First Portfolio Managers has experienced periods of significant income growth, such as a 203.64% increase in June 2023. However, it also faced a -46.04% decline in March 2023, indicating potential volatility in its revenue streams. Such fluctuations can be a concern for investors seeking consistent growth.
Bearish Trend Signals:
Despite its overall positive performance, the recent 3.62% increase to INR 833.20 suggests potential volatility in the stock price. Investors should be cautious of short-term bearish trends that could impact the stock’s performance.
Market Dependency:
As a financial services company, Wealth First Portfolio Managers is highly dependent on market conditions and investor sentiment. Economic downturns, changes in interest rates, and fluctuations in market confidence can significantly impact the company’s performance.
Regulatory Environment:
Operating in the financial services industry, Wealth First Portfolio Managers is subject to stringent regulatory requirements. Changes in financial regulations, compliance standards, and government policies can pose risks to the company’s operations and profitability.
Market Competition:
The financial services industry is highly competitive, with numerous firms competing for market share. Wealth First Portfolio Managers must continuously innovate and provide superior services to maintain its competitive edge and attract clients.
FEATURED PARTNER OFFER
Tata Elxsi
Current Price
One Year Highest and Lowest
Price-to-Earnings
Current Price
One Year Highest and Lowest
Price-to-Earnings
Reasons to Invest
Stable Market Position:
Tata Elxsi holds a significant position in the IT consulting and software services industry. With a market capitalization of INR 43,761.65 cr, it ranks 12th in its sector. The company’s reputation for innovation and quality services has enabled it to maintain a stable market presence.
Low Valuation Metrics:
Despite a relatively high P/E ratio of 55.22, Tata Elxsi’s earnings per share (EPS) of INR 127.25 indicates strong profitability. The company’s valuation reflects investor confidence in its growth potential, which can be attractive for value investors seeking companies with robust earnings.
High Dividend Yield:
Tata Elxsi offers a dividend yield of 1.00%, providing investors with a steady income stream. This yield, combined with the company’s growth prospects, makes it a compelling option for those seeking both income and capital appreciation.
Historical Performance:
Tata Elxsi has demonstrated impressive long-term performance, with a 3-year return of 67.35% and a 5-year return of 720.05%. Although the 1-year return is -6.82%, the company’s historical performance underscores its ability to generate substantial value for its shareholders over the long term.
Market Resilience:
With a beta of 2.08, Tata Elxsi exhibits higher volatility compared to the broader market. However, this also indicates the potential for higher returns, making it attractive to investors with a higher risk tolerance. The company’s consistent income growth and strong financial performance further enhance its market resilience.
Difficulties and Risks
Topline Contraction:
The company has experienced fluctuations in total income, as seen in the historical data. For example, a decline of -8.88% in June 2014 and slower growth rates in certain quarters indicate potential volatility in revenue streams, which can be concerning for investors seeking stable growth.
Bearish Trend Signals:
The recent share price decrease of 0.39% to INR 7,027.00 suggests short-term bearish sentiment. Additionally, the 1-year return of -6.82% indicates potential challenges that the company may face, which could impact its stock performance.
Market Dependency:
Tata Elxsi’s performance is closely tied to global IT spending and economic conditions. Any downturn in these areas can adversely affect the company’s revenue and profitability, posing a risk to investors.
Regulatory Environment:
Operating in multiple countries, Tata Elxsi is subject to various regulatory environments and compliance requirements. Regulation changes, particularly in key markets, can impact the company’s operations and financial performance.
Market Competition:
The IT consulting and software services industry is highly competitive, with numerous global players vying for market share. Tata Elxsi must continuously innovate and provide high-quality services to maintain its competitive edge and attract clients.
https://www.forbes.com/advisor/in/investing/best-value-stocks/
