5 Value Stocks to Add to Your Watchlist

#2 Kiri Industries

Second on the list is Kiri.

At its current price of Rs 394, the stock commands a PE multiple of just 0.5, while its price to book multiple is 0.3.

It has averaged a PE of almost 9 and a PB of 0.8 over the past 5 years.

Kiri Industries is a large manufacturer and exporter of dyes, dye intermediaries, and basic chemicals. It's one of the largest Indian manufacturers and exporters of its product range. Kiri is an accredited firm with top dyestuff majors across Asia-Pacific, the US, and the US.

The company leverages backward integration by manufacturing about 60% of the intermediaries required for its colour manufacturing domestically. This helps manage raw material costs and quality.

As far as Kiri's financials are concerned, the company's profit got a one time boost in FY26 due to a long pending case. Due to this, it posted its highest every annual profit.

The company's ROE and ROCE have averaged 9% and 10% respectively over the past 5 years.

In recent months, the stock price has faced a healthy correction due to headwinds in raw material prices. Due to challenges in the textile sector, lower capacity utilisation and US tariffs on dye imports have tapered its forecast.

That said, the company is optimising its product mix, rationalising costs, enhancing internal efficiencies, focusing on strengthening value-added products, and improving productivity.

It's also diversifying by expanding into the integrated copper smelting and the fertiliser sector. The project involves establishing an integrated facility in Amreli, Gujarat, near Pipavav Port.

The integrated facility includes a 500,000 metric tonne per annum (MTPA) copper smelter, a 350,000 MT phosphoric acid plant and a 1,050,000 MT nitrogen-phosphorus-potassium fertiliser plant.

The construction has commenced, with a 36-month completion timeline starting in October 2025. But Kiri expects partial revenue to start accruing from FY27. It expects close to Rs 120 bn revenue in the first year on about 25% capacity utilisation.

All capacity is expected to be installed by 2028. By FY30, the entire capacity is projected to generate revenue of more than Rs 400 bn (assuming current copper prices). India is a net importer of refined copper, which means that Kiri production will serve as import substitution.

For more details, check out Kiri's financial factsheet.

#3 Ashoka Buildcon

Third on the list is Ashoka Buildcon.

At the current price of Rs 123, the stock commands a PE multiple of 4.3. Its median 5-year PE ranged around 6.4.

On the PB metric, the average of 5 years ranged around 2.4 while it currently trades at a PB of 0.5.

Ashoka Buildcon, incorporated in 1993, is a Nashik-based company that undertakes Engineering, Procurement and Construction (EPC) contracts for the road, railways, buildings and power sector.

The company is also the leading players in the BOT (Build Own, Transfer) segment and Hybrid Annuity Model (HAM). It has a subsidiary, ACL, which is present across renewable energy segments.

Given Ashoka Buildcon's established relationships with state government departments, NHAI and the Ministry of Road Transport and Highways, it continues to post robust earnings over the years.

Over the past 5 years, the company's sales and net profit have grown at a CAGR of 15% and 61% respectively over the past 5 years.

Its ROE and ROCE have averaged 37% and 39% during the same period.

Going forward, its heavy order book is expected to drive growth. The company has an unexecuted order book worth Rs 159.3 bn.

The company has a subsidiary in Saudi Arabia to expand its presence in the Middle Eastern infrastructure market and received an order of hotel project worth Rs 8.5 bn in February 2026.

All of this combined with its healthy execution capabilities across diverse sectors and geographies are expected to support growth and scaling up going forward.

#4 Tamil Nadu Newsprint

Fourth on the list is Tamil Nadu Newsprint.

At the current price of Rs 146, the stock trades at a PE of 4.1. Its 5-year average PE stands at 9.

Its current price to book value is 0.4 while it has averaged 0.7 over the past 5 years.

What's more, the stock's current dividend yield is 2%.

The company was promoted by the State Government of Tamil Nadu and the Industrial Development Bank of India (IDBI) in 1979 to manufacture newsprint and WPP, using bagasse as the principal fiber.

Following the sale of IDBI's stake, the Tamil Nadu government is now the single-largest shareholder with a 35.32% stake.

The company has three production units with a total manufacturing capacity of 4.4 lakh MTPA for the WPP segment.

It has also set up a paper board plant near Trichy, with an annual capacity of 2 lakh MTPA, which commenced production from May 2016.

Coming to its financials, the company's revenue has grown at a CAGR of 5% over 5 years while it has gone from a loss making entity to a profitable one during the same period.

Going forward, the company's healthy distribution network and its integrated operations with adequate in-house capacity to manufacture pulp from diversified sources are expected to provide support. It also has captive power plants, which provide more cost advantages.

Moreover, the favourable long-term demand outlook for paper in the domestic market because of its low per-capita usage as on date, compared to global standards and increasing usage of packaging products supports its business model.

#5 IOC

Last on the list is IOC.

At the current price of Rs 139, IOC trades at a PE of 4.6 compared to its 5-year average of 5.7.

Its median PB is 1 while it trades just below the median range at 0.9.

The interesting part is that the stock currently gives a dividend yield of over 5%.

Indian Oil Corporation (IOC) is the largest LPG producer in India. It has the highest refining capacity in the country and operates the largest number of refineries.

It also produces the maximum LPG volumes as a by-product. IOC dominates the domestic LPG market through its Indane brand.

Coming to IOC's financials, its sales have grown at a healthy rate of 11% over the past 5 years, while profit have come down.

The average ROE and ROCE stand at 16% and 19% respectively for the same period.

India's energy demand is expected to grow significantly over the next decade, driven by economic growth, urbanisation, and rising fuel consumption.

IOC, being the largest refiner and fuel retailer, is well-positioned to meet this structural demand.

Some of its ongoing refinery expansions and new projects are expected to increase capacity and earnings potential.

For more details, check out IOC's financial factsheet.

Conclusion

While the stocks we discussed above look undervalued on the obvious metrics, that doesn't mean they are outright buys.

A stock could be cheap for a reason. It becomes a trap when the reason is structural rather than temporary.

So before investing in any value stock, ask yourself - Is there an industry problem? Is the low price due to a temporary recession or a permanent shift in the industry?

And also look at who else is buying the stock? If institutional investors are exiting and insiders are selling their own shares, it's a massive red flag.

Do consider other ratios along with PE and PB and also check the company's debt levels.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...