Value stocks' comeback has begun. Here are 10 names to watch out for

Nifty23, 897.7024.25. Gold (MCX) (Rs/10g.)152, 949.00-2826.0.

Key points

• When the Nifty 50 climbed regarding 54%, the universe had fallen sharply from 30% in 2022, with the biggest decline occurring between March 2023 and September 2024.
• Top Trending Stocks: SBI Share Cost, Axis Bank Share Rate, HDFC Bank Share Cost, Infosys Share Rate, Wipro Share Cost, NTPC Share Rate.
• ETMarkets.comLast Updated: Sep 04, 2026, 07: 32: 00 PM IST.
• Vedanta has the highest earnings yield among the 10 stocks at 20%, followed by ONGC at 17% and Indian Oil at 15%.
• Value stocks Indiabest value stocksVedantaONGCIndian OilICICI Securitiesvalue investingvalue stocks 2026.

Nifty23, 897.7024.25. Gold (MCX) (Rs/10g.)152, 949.00-2826.0. The Economic Times daily newspaper is available online now.

Value stocks are making a comeback in India. These 10 stocks could benefit.

Value stocks are making a comeback in India. These 10 stocks could benefit. ETMarkets.comLast Updated: Sep 04, 2026, 07: 32: 00 PM IST.

For context, the value-stock universe in India is showing signs of recovery after a sharp decline during the previous bull run. ICICI Securities has identified 10 stocks, led by Vedanta, ONGC and Indian Oil, that meet its value criteria based on earnings yield, return on equity, valuations, earnings trends and potential catalysts. Listen to this article in summarized format. Unlock AI Briefing and Premium Content. New Year Offer 24 Hours Left. Subscribe Now Already a member? Sign In.

India's investable value stock universe is showing signs of stabilising after a steep decline during the market's previous bull run, creating fresh opportunities in energy, metals and select financial sectors. The proportion of value stocks among the top 1, 000 firms by market capitalisation has risen to 13% in August 2026 from 11% in 2024, according to a report by ICICI Securities. When the Nifty 50 climbed regarding 54%, the universe had fallen sharply from 30% in 2022, with the biggest decline occurring between March 2023 and September 2024.

Notably, the report defines an investable value stock as one with an earnings yield above the average India-US bond yield and return on equity above 14%. "Post 2024, there were two episodes – the US tariff fear in 2025 and the West Asia crisis in 2026 – that sparked a moderate expansion in the universe of value stocks, " ICICI Securities remarked. Subsequent market rallies, nevertheless, reversed part of that improvement. The brokerage's current value-stock list, sorted by earnings yield, includes Vedanta, ONGC, Indian Oil Corp., Oil India, NMDC, BPCL, Hindalco Industries, NALCO, Just Dial and Petronet LNG. Live Events.

Nominal GDP expansion set to surge to 12%. Why the stock market may still struggle to rally The 10 stocks on the screen.

Vedanta has the highest earnings yield among the 10 stocks at 20%, followed by ONGC at 17% and Indian Oil at 15%. While NMDC has 12%, oil India has an earnings yield of 13%. BPCL and Hindalco Industries both have an earnings yield of 11%. NALCO, Just Dial and Petronet LNG each have an earnings yield of 10%. Small caps remain the subdued link.

For context, the decline in the value stock universe was led largely by small caps. The number of investable value stocks in the small-cap segment fell from 230 in March 2022 to 87 in August 2026. By comparison, the large-cap universe has remained broadly stable. Large-cap investable value stocks stood at 24 in August 2026, compared with 23 in March 2022. Mid-cap value stocks declined from 26 to 16 over the same period. The sector composition has additionally changed materially. Financial services and banks at present account for the largest pools of qualifying stocks, with 19 names each in August 2026. Industrials account for 15, consumption for 12, metals for 11, energy for 10 and IT for 10. Materials, once among the largest contributors, fell from 53 qualifying stocks in March 2022 to nine in August 2026. While automobile and components fell from 14 to five, healthcare declined from 16 to three. Earnings could improve the value universe.

ICICI Securities remarked a rising corporate profit cycle could assist growth the number of stocks gathering its value criteria. According to The brokerage, the current range-bound market is being driven by geopolitical worries, while corporate profitability is improving. "The current phase of a range-bound market is driven by concerns of elevated geopolitics; alongside, a rising corporate profit cycle may improve the tally of investable value stocks ahead, " the report remarked. Since the earnings-yield hurdle would growth, the brokerage additionally cautioned that a further rise in global bond yields could produce it harder for stocks to qualify as value investments. Profit expectations remain strongest outside the benchmark index. The report estimates a 20% compound annual expansion rate in profit after tax for the Nifty Midcap 100, excluding volatile-growth businesses, between fiscal 2026 and fiscal 2028. While the Nifty 50 is projected to deliver a 15% CAGR, the corresponding estimate for the Nifty Smallcap 100 is 22%. ICICI Securities' framework is designed to avoid value traps, stocks that appear cheap but remain subdued as their long-term fundamentals continue to deteriorate. For context, the screen therefore additionally looks for low speculative value, earnings yield above bond yields, a price-to-book ratio closer to 1 times depending on the sector, limited earnings downgrades and near-term catalysts. The report notes the value strategy depends on "avoiding value traps and identifying signs of recognition of value by the market." That leaves investors with a narrower proposition: the stocks may look inexpensive, but a rerating will still depend on earnings delivery, improving fundamentals and catalysts that can bring the market back to them. (Disclosure: This article has been written by Nikhil Agarwal. This person is not a SEBI-registered Research Analyst or an investment advisor. Nikhil Agarwal does not hold any financial interest in all the firms mentioned in the report as of the date of publication. For context, the views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/documented with due attribution. They should not be construed as the views or recommendations of the EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and create their investment decisions based on their own assessment.).

Top Trending Stocks: SBI Share Cost, Axis Bank Share Rate, HDFC Bank Share Cost, Infosys Share Rate, Wipro Share Cost, NTPC Share Rate. Value stocks Indiabest value stocksVedantaONGCIndian OilICICI Securitiesvalue investingvalue stocks 2026. Is crude oil becoming a financial difficulty? Patent Cliff approaching: Can Indian pharma firms repeat past success? Q1 investment numbers look stellar, but are we celebrating too early?

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For now, value stocks' comeback has begun. Here are 10 names to watch out remains the part of the story worth watching, and further updates are likely as more details are confirmed.