Companies trading at a discount

"I make no attempt to forecast the market - my efforts are devoted to finding undervalued securities," said Warren Buffett In line with Buffett's investing philosophy, we decided to find out companies that were potentially undervalued. We used our stock screener and looked for the top 10 companies trading at the highest discount to their five-year median P/E . We applied the following filters to find these companies. Market cap of at least Rs 1,000 crore Five-year average ROCE of more than 20 per cent Five-year earnings growth of more than 20 per cent per annum Current P/E to median P/E ratio of less than one (i.e., trading below its median P/E) 49 companies showed up after applying these filters. You can access the full list here . Next, we sorted these companies based on the largest discount to their median P/E ratio. Here are the top 10 of them. Potentially undervalued companies These companies are trading at a discount to their median P/E Company M-cap (Rs cr) 5Y avg ROCE (%) 5Y EPS growth (% pa) Current P/E Religare Enterprises 8019 21.23 29.4 2.5 Ramky Infrastructure 4190 21.5 101.2 3.4 Adani Total Gas 68463 27.3 51.1