From Grasim to Reliance Industries, many Nifty stocks still offer value

Companies where valuations are currently above their historical levels mostly belong to sectors such as financial, FMCG and IT services

With the Nifty nearing all-time highs, valuation for the 50-share bluechip company index has moved above historical levels. The index currently trades at nearly 18 times its estimated one-year forward price-to-earnings (P/E), higher than the 10-year average of 16 times. Price-to-book (P/B) for the index also is currently 2.5 times compared to historical average of two times. However, a deep-dive into valuations of individual scrips suggests the market still offers value. Only 14 Nifty stocks trade at a premium to their historical average on one-year forward P/B and 18 on a one-year forward P/E basis, according to BNP Paribas.