Undervalued Quality Stocks
Low PE, high ROE, growing revenue and low debt — the classic quality-at-a-discount combination every value investor looks for.
Screener.in Query
Copy and paste this directly into Screener.in
Price to Earning < 12 AND
Return on equity > 18 AND
Sales growth 3Years > 12 AND
Debt to equity < 0.5 AND
Market Capitalization > 200 AND
OPM > 15 AND
Profit growth 3Years > 12Step: Copy the query above → Open Screener.in → New Screen → Paste in the query box → Run
What It Finds
Quality companies (ROE > 15%, growing sales, low debt) trading at PE below 15.
Why It Works
The holy grail of value investing — a genuinely good business trading cheaply. PE < 15 combined with strong ROE and growth means the market has underpriced future earnings.
Best For
Best Market Conditions
Things to Watch Out For
- Value traps exist — always check WHY the stock is cheap
- PE < 15 may be justified if growth is decelerating
- Patience required — value unlocking can take 1–3 years
After Running the Screen
- 1Check each company's annual report and latest quarterly results.
- 2Verify the current valuation is reasonable — not just passing the screen.
- 3Look for insider ownership and promoter pledge levels.
- 4Always invest only what you can afford to hold for 3+ years.
About Value Investing
Value investing is buying more than you pay for — finding genuinely good businesses temporarily trading at a discount to their intrinsic worth. In Indian markets, where retail speculation frequently inflates popular stocks, real value quietly compounds in neglected corners of the market.
The core metrics: Price-to-Earnings (PE) below 10–15 for quality businesses with growing profits signals underpricing. But low PE alone is not value — it can be a trap. A stock is cheap for a reason: slowing growth, management issues, cyclical peak earnings, or structural industry decline. The screens here add quality filters (ROE above 15%, low debt, positive profit growth) to separate genuine value from value traps.
Related Screens
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Debt Free + Profit Growth
Zero-debt companies with accelerating profit growth — financial fortress businesses that fund their own growth without borrowing.
Consistent Profit Growers (5 Year)
5-year consistent profit compounders with strong ROE and manageable debt — businesses proven to grow through multiple market cycles.
Disclaimer: These screens are for educational and research purposes only. Results are based on historical financial data and do not constitute investment advice. Past screen performance does not predict future returns. Always verify data on BSE/NSE and consult a SEBI-registered investment advisor before investing.