Value theme gains currency as low P/E multiples catch investors' fancy

In February, the bottom 33 Nifty companies in terms of P/E rose 17.3%, while top-tier P/E stocks shed 1.3%

Stocks quoting at low price-to-earnings (P/E) multiples have finally caught the fancy of investors. In February, the bottom 33 Nifty companies in terms of P/E rose 17.3 per cent, even as the top-tier P/E stocks fell 1.3 per cent. The 17 stocks in the ‘middle’ rose 7.5 per cent. The Nifty 50 index rose 5 per cent during the month.

The valuation of the top-tier stocks fell slightly from 36.8 times their estimated earnings for FY22 in January to 36.2 times in February. Valuation of the stocks at the bottom of the pyramid rose from 8.3 times to 9.6 times,