Stocks With Low Book Value Z-Score, Robust Fundamentals Set To Outperform As ‘Value Rotation’ Likely To Continue: ICICI Securities  
An employee wearing a protective face mask looks at company trading price movements on a digital screen inside the stock exchange. (Photographer: Cyril Marcilhacy/Bloomberg)

Stocks With Low Book Value Z-Score, Robust Fundamentals Set To Outperform As ‘Value Rotation’ Likely To Continue: ICICI Securities  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Value stocks started to outperform in a sustained way in FY21 after a decadal underperformance: Price to book Quintile performance within BSE200 universe: Q1 (highest P/B) up 50%, Q2 up 92%, Q3 up 106%, Q4 up 113%, and Q5 (lowest P/B) up 157%.

Similarly, the MSCI Value index has outperformed by 12% since October 2020 (MSCI Value up 23% versus MSCI Growth up 10%).

Despite the rally and bull market environment, the chasm between value and growth still remains at a two-decade high both in the global context (PB premium of MSCI Growth over MSCI Value) and for Indian markets (PB premium of Q1 over Q5).

Click on the attachment to read the full report:

ICICI Securities Strategy .pdf

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