Which of today's cheap stocks are actually worth buying?
Hundreds of NSE stocks look "cheap" right now. Most are cheap for a reason. Here's the 3-step filter we use to separate real opportunities from value traps — and the exact screen you can run yourself.
A low price-to-book or a beaten-down chart isn't enough on its own — plenty of stocks are cheap because the business is deteriorating. The method layers three independent checks, each answering a different question, so a stock only qualifies if it passes all three.
Filter by VII — Value or Deep Value zone
The Value & Investment Index (VII) measures where a stock sits within its own recent trading range and valuation history — not against other stocks, against itself. A "Value" or "Deep Value" zone means it's trading well below where it usually does.
Check the Fundamental Score is Strong
A composite 0-100 score across profitability, leverage, and growth — independent of price. This is the filter that keeps out stocks that are cheap because they deserve to be. We require 70+.
Verify with the Relative Rotation Graph (RRG)
Plots a stock's relative strength and momentum vs. NIFTY 50. Leading or Weakening means it's already outperforming — the re-rating may already be priced in. Lagging or Improving means it's still catching up, which is where a value pick should sit before the crowd notices.
IRCTC IRCTC · Consumer Cyclical
All three line up: undervalued, fundamentally strong, and not yet re-rated by the market. That combination — not any single metric — is the signal.
Opens the screener pre-filtered to VII Value/Deep Value zone + Fundamental Score ≥ 70. Cross-check your shortlist against the RRG page for step 3.
Prefer one number instead of three?
The Verdict Score already blends Fundamental, Technical, and Sentiment into a single 0-100 score and recommendation for any stock — a faster gut-check, though it doesn't carry RRG's timing signal.
UltraTech Cement Limited (ULTRACEMCO)
Check any stock's Verdict Score
Open a stock's page to see its live Fundamental, Technical, and Sentiment breakdown.
Why three tools, not one?
Isn't a low P/E enough on its own?
No — a stock can be statistically cheap because the market correctly expects declining earnings. VII tells you it's cheap; the Fundamental Score tells you whether that's deserved.
Why not just buy anything with a Strong Fundamental Score?
Plenty of great businesses are fully priced or overbought — a Strong score alone doesn't mean now is a good entry point. Pairing it with VII's valuation zone adds the "is this actually a good price" check.
What does the RRG step actually protect against?
A stock can be cheap and fundamentally sound and still have already started re-rating — meaning much of the easy upside is gone. Lagging/Improving quadrants mean that hasn't happened yet.
Do I have to check RRG manually?
For now, yes — run the VII + Fundamental Score screen first to get a short candidate list, then look each one up on the RRG page. We're working on combining all three into a single filter.
Know someone who'd find this useful?
Share the method, not just a stock tip — this page updates with the same live screener your group will actually use.