​6 Indian stocks that fit in Warren Buffett’s idea of value investing

The CEO of Berkshire Hathaway and current primary shareholder Warren Buffett is one of the most successful investors of all time. A former student of Benjamin Graham, Buffett is noted as a legendary value investor, though he is also believed to incorporate an emphasis on management quality and company growth prospects. Based on Buffett's investing strategy, a custom screen made by MarketSmith emphasizes metrics looking for companies with long-term past and potential future growth.

Here are 6 stocks that match Buffett’s idea of value investing, as listed on MarketSmith:

With an operating revenue of Rs 1,550.26 crore on a trailing 12-month basis, Sree Rayalaseema Hi-Strength Hypo has reported outstanding revenue growth of 39%, a pre-tax margin of 11% and an ROE of 18%.

The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles. The stock, from a technical standpoint, is trading below its 50 DMA and around 30% up from its 200DMA. MarketSmith said it needs to take out the 50DMA levels and stay above it to make any further meaningful move.

Page Industries has an operating revenue of Rs 4,726.20 crore on a trailing 12-month basis. The company has an outstanding annual revenue growth of 37%, pre-tax margin of 18% and ROE of 49%. The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles.

The stock, from a technical standpoint, is trading below its 50DMA and around 10% up from its 200DMA. MarketSmith said the stock needs to take out the 50DMA levels and stay above it to make any further meaningful move

With an operating revenue of Rs 2,211.42 crore on a trailing 12-month basis, Grindwell Norton reported outstanding annual revenue growth of 22%, pre-tax margin of 20% and ROE of 18%.

The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles. The stock, from a technical standpoint, is trading below its 50DMA and around 13% up from its 200DMA. MarketSmith said the stock needs to take out the 50DMA levels and stay above it to make any further meaningful move.

Rajratan Global Wire has an operating revenue of Rs 945.39 crore on a trailing 12-month basis. The stock has outstanding annual revenue growth of 63%, a pre-tax margin of 17% and an ROE of 36%. The company has a reasonable debt to equity of 16%, signalling a healthy balance sheet. The stock, from a technical standpoint, is trading below its 50DMA and around 9% up from its 200DMA.

Schaeffler India has an operating revenue of Rs 6,595.99 crore on a trailing 12-month basis. The company has outstanding annual revenue growth of 47%, a pre-tax margin of 15% and an ROE of 17%. The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles. The stock, from a technical standpoint, is trading below its 50DMA and around 15% up from its 200DMA. MarketSmith said the scrip needs to take out the 50DMA levels and stay above it to make any further meaningful move.

Gujarat Ambuja Exports has an operating revenue of Rs 4,918.17 crore on a trailing 12-month basis. The company has an annual revenue de-growth of 0%, pre-tax margin of 14% and ROE of 22%. The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles. From a technical standpoint, the stock is trading below its key moving averages.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)