You know, stepping into the Indian stock market these days has ups, downs, and plenty of opportunities if you know where to look. The economy is expected to move along at a steady 7.4% growth rate this year. Amid all the hype and budget 2026 around trendy tech startups and rapid-growth plays, there’s something reliably appealing about high book value stocks and value investing.
With Union Budget 2026 expected to continue its strong push on infrastructure spending, PSU capital efficiency, and domestic energy security, value-oriented stocks linked to these themes are drawing renewed investor interest, especially when evaluated data-driven approach similar to ai for Indian Stock Market analysis.
In this guide, we’ll take you through some of the standout high book value stocks in India as we have just started 2026. Moreover, we’ve carefully selected them by digging into normalized price-to-earnings ratios based on 5-10 year average EPS figures, an approach increasingly adopted in ai based stock trading india models to reduce short-term noise.
Why Should You Prioritize Multi-Year Average Earnings in Value Investing?
We’ve all seen how a single year’s earnings can be false, especially in industries prone to wild swings like oil or commodities. When analysts and investors calculate EPS across several years, they balance out the fluctuations. In addition, they give you a more accurate view of what a business can really deliver in the long term like how best ai based portfolio management india systems focus on normalized data instead of short-term spikes. This approach is particularly handy right now in 2026, as India goes through ongoing global effects. In fact, it ranges from shifting commodity costs to the RBI’s changes in interest rates.
Budget 2026 plays an important role here, as policy continuity, fiscal discipline, and targeted sectoral allocations are expected to smooth earnings volatility for PSU-heavy and infrastructure-linked businesses.
So, why zero in on this today? For beginners, indices like the Nifty PSU Bank are sitting at forward P/Es around 12, a steal compared to the Nifty 50’s pricier 22. The value stocks we’ve highlighted often show normalized P/Es, which could result in 20-40% gains if earnings pick up steam. And with high dividend yield stocks India, you can keep them for growth, an outcome many investors now seek using ai tool for stock market India.
- Cuts through the fluctuations: Smooths over fluctuating markets for a more accurate valuation.
- Spotlight’s durability: identifying firms with real staying power below.
- Suit patient strategies: Great for investors who aim for long-term wealth building.
How to Evaluate and Select High Book Value Stocks Using This Approach?
Read out the following section to know how we are going to evaluate and choose the high book value stocks by using the approach.
- Gather the basic overview: Collected EPS and profit data going back a decade.
- Analyze the data: Added up the EPS average and divided by the years to get normalized values.
- Set the bar high: Filtered for normalized P/E under 15, current P/E below 10, earnings growth over 5% CAGR, and low debt ratios.
- Make sure to check the pros and cons: Consider overarching patterns, such as government renewable drive or policy shifts.
Budget 2026 expectations around power, fertilisers, oil & gas, insurance penetration, and PSU balance-sheet strengthening were also factored into sector-level screening.
What Are the Top Value Stocks in India for 2026?
Here, we have prepared the high-value and best stocks to buy that stands out for its undervaluation rooted in multi-year earnings.
1. Coal India Ltd.
This is one of the go-to value stocks for Indians. As a result, it handles over 80% of the country’s needs. Over the past 10 years, its average EPS has been at ₹25.03. However, this leads to a normalized P/E of 16.7, considering its track record. Net profits have increased at about a 10% CAGR, reaching ₹31,081 Cr on a twelve-month basis.
We already heard about cleaner energy; coal is still the main and best source of India’s power network, and its production is increasing in demand. There are 6.33% high dividend yield stocks India.
Budget Angle: Budget 2026 is likely to sustain capital expenditure and power demand growth, keeping coal relevant as a base-load energy source despite renewable expansion.
- Growth Outlook: You can expect a 20-30% increase in growth if coal stays steady above $100 per tonne.
- Potential Drawbacks: Tighter regulations on emissions, and profits decreased 13% in the latest TTM.
2. Oil & Natural Gas Corporation Ltd (ONGC)
ONGC has a 10-year average EPS of ₹22.43, with a normalized P/E at 10.43. Earnings have compounded at around 10%, hitting ₹38,329 Cr in FY25.
Apart from that, it’s currently trading at just 0.80 times book value with a 5.23% yield, and India’s drive to boost local output could cut down on those substantial import currency exchange rates.
Budget Angle: Union Budget 2026 is expected to further support domestic oil & gas production to reduce import dependency and manage the fiscal and current account balance.
- Benefits: Collaborations like the one with BP might increase production by 15-20%.
- Watch for: Oil decreases under $70 a barrel could reduce margins, but government buffers help.
3. Power Finance Corporation Ltd (PFC)
It focuses on loans to the power sector. This NBFC has a 10-year average EPS that comes in at about ₹27.85. Moreover, it puts the normalized P/E around 12.9 when you evaluate the numbers against today’s price. Profits have been continuing to grow at a respectable 14% CAGR over the decade, hitting ₹30,514 Cr in FY25. The latest quarterly figure for Sep 2025 was ₹7,834 Cr, showing some solid momentum.
It’s trading at just 0.93 times book value with a compelling 4.40% dividend yield.
Budget Angle: Higher budgetary allocations to power transmission, renewable integration, and grid upgrades directly improve credit visibility for PFC.
- Momentum construction companies: A strong 18% profit growth over the last three years, plus NPAs staying nicely contained at around 3% or lower in recent quarters.
4. Gujarat State Fertilizers & Chemicals Ltd (GSFC)
With a 10-year average EPS of ₹12.49 and a normalized P/E working out to about 14.2, net profits wrapped up at ₹638 Cr on a TTM basis for FY25. Moreover, it reflects a relatively small 4% CAGR over the years, though the last three years saw a -13% decrease, which is worth noting.
It’s basically running debt-free with borrowings at a negligible ₹1 Cr, trading at a bargain 0.57 times book value, and offering a 2.82% yield.
Budget Angle: Budget 2026 fertiliser subsidy allocations and green energy incentives could help stabilise cash flows and improve margin predictability.
- Benefits: Latest investments in solar projects and some smart operational adjustments look set to give margins a nice lift moving forward.
- Challenges: Those occasional delays in government subsidies can be a big challenge, not to mention the ups and downs in raw material prices that keep things unpredictable.
5. Life Insurance Corporation of India (LIC)
LIC’s average EPS over the available years (from 2022 onward) sits around ₹61.10, leading to a normalized P/E of roughly 13.6. Net profits absolutely skyrocketed to ₹51,109 Cr on a TTM basis for FY25, with an impressive 78% CAGR over the past five years and a phenomenal 128% over the last three.
India’s insurance market is still so underdeveloped, with penetration under 4%. However, it leaves massive space for expansion, all backed by an impressive 46% ROE.
Budget Angle: Tax incentives for long-term savings and insurance adoption in Budget 2026 can act as a structural growth trigger for LIC.
- Edges: Commands a dominant 60%+ market share and runs with zero debt.
- Worries: Regulatory modifications could shake things up.
6. Indian Oil Corporation Ltd
IOCL’s 10-year average EPS is ₹9.85, which gives a normalized P/E of around 16.0. Net profits came in at ₹25,514 Cr TTM for FY25, with a 12% CAGR over the decade but a tougher -22% over the recent three years.
It offers a solid 3.17% yield while trading at 1.13 times book, and with expansion plans in refining plus a move into greener energy options, it’s adapting to the times.
Budget Angle: Budget-led support for ethanol blending, refinery upgrades, and green fuels strengthens IOCL’s long-term positioning.
- Pluses: Grabs a massive 31% of India’s refining capacity and has a reliable track record on dividends that investors can count on.
- Drawbacks: Those government-imposed caps on fuel prices can crimp margins, and it’s always at the risk of fluctuations in global oil markets.
7. Bharat Petroleum Corporation Ltd (BPCL)
BPCL shows a 10-year average EPS of ₹18.49, which leads to a normalized P/E of about 19.1. Net profits hit ₹6,191 Cr in the latest Sep 2025 quarter, with an 11% CAGR over the decade and 8% over the last three years, though sales growth has been weak at 9% over five years.
Trading at around 1.63 times book (based on a ₹217 book value) with a 2.82% yield, it’s got a strong environmental impact with 14-15% of India’s refining capacity across its plants, and the shift toward renewables adds a forward-looking angle.
Budget Angle: Energy transition funding and refinery modernization initiatives under Budget 2026 provide visibility to BPCL’s earnings trajectory.
- Assets: Healthy dividend payouts at 35%, and it’s been delivering decent stock price gains, like 26% CAGR over three years.
- Challenges: Similar to its competitors, it’s exposed to commodity price volatility and policy decisions on fuel pricing that can result in a disruption in plans.
Why Diversify Across Sectors, and What Risks to Consider?
Key risks to consider over:
Industry challenges: Fossil fuels face growing ESG heat; fertilizers deal with subsidy quirks.
Bigger scenarios matter: Inflation increases or global oil turmoil.
The trap factor: Some might stay cheap if core issues don’t resolve.
Stay on top by checking quarterly reports and economic headlines.
Concluding Words!
If you want to jump in eagerly, read out these steps. Begin by monitoring these on Stock Investment apps like Jarvis ai App. Ease into a stock portfolio, maybe through systematic investment plans in thematic funds for wider coverage.
When aligned with Budget 2026 priorities, they also offer potential re-rating opportunities as policy-led growth themes unfold.
All said, these value stocks, anchored in multi-year earnings, serve as a reliable shield in difficult conditions. With India’s upward trajectory, those who hang in there might enjoy some rewarding returns. Keep learning, and here’s to smart investing!
