Value funds make a comeback: These mid-cap and small-cap stocks are their favourites

After years of underperformance, value funds are back. Their performance in the last two years has been impressive, having outperformed their large-cap, mid-cap, small-cap and flexi-cap funds, on an average, over the last one year. Value fund managers select stocks that are trading for less than their intrinsic or book value. They look at stock's price-to-earnings (P/E) ratio or price-to-book (P/B) ratio to identify those stocks. Peeyush Pandey, a Bhopal based mutual fund distributor says “Value stocks tend to exhibit slower growth and one has to wait for long term of their value to be unlocked. Value strategy is also cyclical in nature. It tends to outperform growth and momentum strategies during rising interest rates, and also when the economy is going through rough paces”. Here are the most popular mid-cap and small-cap stocks among 19 value focused mutual funds. Data as on November 30, 2022. Source: ACEMF

CESC
No. of value funds that hold the stock: 7
A sample of value funds that hold the stock: JM Value, UTI Value Opportunities and ITI Value fund

Lupin
No. of value funds that hold the stock: 7
A sample of value funds that hold the stock: ITI Value, Quantum Long Term Equity Value and Axis Value fund

The Federal Bank
No. of value funds that hold the stock: 6
A sample of value funds that hold the stock: Aditya Birla SL Pure Value, HSBC Value and Axis Value fund

Aditya Birla Fashion and Retail
No. of value funds that hold the stock: 5
A sample of value funds that hold the stock: JM Value, UTI Value Opp and HDFC Capital Builder Value fund

Bharat Forge
No. of value funds that hold the stock: 5
A sample of value funds that hold the stock: IDBI Long Term Value, JM Value and IDFC Sterling Value fund

Cholamandalam Financial Holdings
No. of value funds that hold the stock: 5
A sample of value funds that hold the stock: Templeton India Value, Tata Equity P/E and Nippon India Value fund

Coromandel International
No. of value funds that hold the stock: 5
A sample of value funds that hold the stock: Union Value Discovery, DSP Value and Axis Value fund

Jindal Steel & Power
No. of value funds that hold the stock: 5
A sample of value funds that hold the stock: IDFC Sterling Value, Aditya Birla SL Pure Value and HSBC Value fund

Oberoi Realty
No. of value funds that hold the stock: 5
A sample of value funds that hold the stock: HSBC Value, Aditya Birla SL Pure Value and IDBI Long Term Value fund

Birla Corporation
No. of value funds that hold the stock: 4
A sample of value funds that hold the stock: HSBC Value, Aditya Birla SL Pure Value and ICICI Pru Value Discovery fund

Bosch
No. of value funds that hold the stock: 4
A sample of value funds that hold the stock: IDFC Sterling Value, HSBC Value and ITI Value fund

Container Corporation Of India
No. of value funds that hold the stock: 4
A sample of value funds that hold the stock: Indiabulls Value, IDBI Long Term Value and Canara Robeco Value fund

Crompton Greaves Consumer Electricals
No. of value funds that hold the stock: 4
A sample of value funds that hold the stock: Templeton India Value, IDBI Long Term Value and UTI Value opportunities fund