Value shares are once again on the radar of investors after 10 years of underperformance. Market giants believe that value stocks or stocks that are trading below their intrinsic value will see a strong comeback in FY 2022.
The growth vs. value debate will continue in the stock market and it is not going to stop soon. But investors who focus on earning money over a fixed period can turn to value stocks.
Let us first understand what is the frequent discussion about value and growth. Growth stocks are stocks that have the potential to outperform the market in a given period of time. At the same time, value stocks are those stocks which are trading below their intrinsic value.
Market experts say that in FY 2022, value companies can make a comeback. A recent note by ICICIdirect stated that after almost 10 years of underperformance, value shares are once again on the radar of investors. Value stocks or stocks that are trading below their intrinsic value will see a strong comeback in FY 2022.
Different people have different interpretations and definitions on value and growth. For example, a company with a good growth potential and a company with good management for which there is a wide potential in the future may be a value stock for some people from a long-term perspective. However, at present, you may find that stock expensive.
Prasanna Pathak of Taurus Mutual Fund told Moneycontrol that growth stocks have generally performed well for a long time. At the moment, most of them are well-discovered and expensive. We now realize that due to adequate liquidity in the world, the value stocks will remain in the limelight in FY 2022.
From this perspective, ICICI Direct’s recent note gives a list of 15 such stocks included in the NSE200, which can now see good gains. These include SBI, Axis Bank, PFC, and Federal Bank, Industrials – L&T, Ambuja Cement, ACC, Oil & Gas – GAIL, Utilities – NTPC, CESC, Auto – Tata Motors, Motherson Sumi, Bajaj AutO, Pharma – Cipla and Sun Pharma For example, there are shares which may see cameback in 2022.
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