Legendary investors Benjamin Graham and Warren Buffett, have based their entire investing philosophy on buying undervalued stocks i.e stocks that have a margin of safety.
However, they consider other parameters as well besides valuation such as high return on equity and high profit margins. They also focus on companies that provide a unique product or service that gives them a competitive advantage.
Here's a list of Indian stocks that could qualify per Warren Buffett's criteria...
Another famous investor who is an advocate for buying undervalued stocks is hedge fund manager and Columbia University professor Joel Greenblatt. His investing strategy involves buying undervalued stocks based on two parameters - high earnings yield and return on capital (RoC).
The earnings yield tells us whether the company is available at an attractive price. The RoC tells us how well the company has used its capital.
Here's a list of Indian stocks that could qualify per Joel Greenblatt's criteria...