Are you also wondering how to make money in stock market without taking any risk?
In this blog, we will talk about 7 real-life value investing case studies from India which showed how “Margin of Safety” strategy made people crorepati.
We will also share simple steps, tools, and our personal experience so that you can confidently start your value investing journey.
🤔What is Value Investing? (And why do I like it)
Value investing is an investing style in which we look for underpriced stocks – that is, shares whose real value is high but their price in the market is falling.
Legends like Warren Buffett, Benjamin Graham have made multi-crore wealth using this strategy.
What do I think? If you can be patient and avoid emotional swings of the market, then value investing can give you a big reward in the long term.
🔍 What is “Margin of Safety” in Simple Words?
Margin of safety means:
“You are buying a stock worth ₹100 for ₹70.”
That means even if the company has a little problem, your loss will be limited.
How do I use it? – I always check the financials, moat and promoter holding, but I only invest when I feel I am getting the right price at a discount.
📚 Real-Life Indian Case Studies: Value Investing That Worked
| 📈 Stock Name | 💸 Bought At (Approx) | 🎯 True Value (Est.) | 🛡️ Margin of Safety | 📊 Current Price (2025) | 📝 Notes |
|---|---|---|---|---|---|
| Infosys (2013) | ₹300 | ₹450 | 33% | ₹1,500+ | Consistent performer, strong ROE |
| ITC (2020) | ₹160 | ₹250 | 36% | ₹450+ | Ignored by market, now a favorite |
| Eicher Motors (2010) | ₹900 | ₹1,500 | 40% | ₹3,500+ | Royal Enfield boom, multi-bagger |
| Bajaj Finance (2009) | ₹50 | ₹100 | 50% | ₹7,000+ | Recovered post-crisis, massive growth |
| Titan (2002) | ₹3 | ₹10 | 70%+ | ₹3,600+ | Jhunjhunwala’s iconic bet |
| D-Mart / Avenue Supermarts (IPO 2017) | ₹299 | ₹500 | 40% | ₹4,200+ | RK Damani’s value-backed retail success |
| HDFC Bank (2003) | ₹60 | ₹90 | 33% | ₹1,700+ | Strong fundamentals & steady compounding |
🟢 Moral: Patience and price discipline matter the most.
🧠 How to Start Value Investing in India (My Simple Step-by-Step Guide)
1. Identify Companies with Strong Fundamentals
If you want to choose a good business to invest in, you should make sure its “fundamentals” are strong.
So what does fundamentals mean? These are some financial things that tell how the company is doing – fit or weak.
✅ 1. High ROE (Return on Equity) – How much money is the company earning for its investors
ROE means:
“How much return did the company make from shareholders’ money?”
Easy Example:
Suppose you invested ₹100 in a business.
And that business earned ₹25 in a year.
So ROE = 25%
Good ROE: If it is above 15% then it is considered good.
🟢 Example:
Infosys’s ROE is around 30% – it means those shareholders’ money is growing well.
✅ 2. Consistent Profit Growth – Is the company growing in profit every year or not?
You want a company that shows growth in profit every year, without major ups and downs.
Easy Example:
Suppose a company’s profit has been like this in the last 5 years:
₹100 Cr → ₹120 Cr → ₹145 Cr → ₹180 Cr → ₹210 Cr
This is stable and healthy growth.
If the company is sometimes in profit, sometimes in loss – then it is risky.
🟢 Example:
Asian Paints – Profit grows every year, that’s why investors like it.
✅ 3. Low Debt – Company should have low loan or debt
If a company has too much debt, it can sink in case of market crash or sales decrease.
Easy Example:
Company A: Total assets ₹100 Cr, loan ₹80 Cr → High Risk
Company B: Total assets ₹100 Cr, loan ₹5 Cr → Low Risk
🟢 Example:
Companies like TCS or HDFC AMC have very low or zero debt — that’s a green flag!
🔎 Quick Table for Summary:
| Criteria | Simple Meaning | Good Value | Example Company |
|---|---|---|---|
| ROE | The power to earn money | 15%+ | Infosys |
| Profit Growth | Increasing profit every year | 10%+ YoY | Asian Paints |
| Low Debt | Loan company | Debt-to-equity < 0.5 | TCS, HDFC AMC |
2. Do Intrinsic Value Calculation
Intrinsic value means:
“The true value of a stock or its real worth — as it should be, not as it is being quoted in the market.”
Market price and intrinsic value are different. If the intrinsic value is ₹200 and the stock is available at ₹120, then it is available at a discount – and this is the opportunity for value investing.
🧠 Simple Example:
Imagine: You like a mobile phone whose actual market value is ₹20,000.
But on Amazon it is available for just ₹14,000 (30% discount!).
What will you do? Obviously you will buy it.
Same thing happens in stock market also.
If a company has a phone worth ₹200, but it is available in the market for ₹130, then it is on “sale”.
📊 Real Company Example: ITC
| Metric | Value |
|---|---|
| EPS | ₹16 |
| Growth Estimate | 10% |
| Intrinsic Value (Graham Formula) | ₹456 |
| Market Price (2025) | ₹450 |
| Conclusion | Near Fair Value – Hold/Watch |
3. What is Margin of Safety (MOS)?
Definition
Margin of safety means:
“Buying a stock cheaper than its intrinsic value – to minimise risk and maximise returns.”
This is a safety buffer – even if your calculations are slightly wrong, your losses remain minimal.
Real-Life Example (Mobile Phone Logic):
Think about it, the real value of an iPhone is ₹80,000.
You are getting the same phone for ₹55,000.
So:
- Intrinsic value = ₹80,000
- Buying price = ₹55,000
- Margin of Safety = ₹25,000
- % MOS = (25,000 ÷ 80,000) × 100 = 31.25%
Conclusion: Yeh deal safe bhi hai aur faydemand bhi. Stock investing me bhi yehi logic apply hota hai.
This deal is safe as well as profitable. The same logic applies to stock investing as well.
📚 Best Value Investing Books
| Book Name | Why Read It? | Where to Buy |
|---|---|---|
| 1. The Intelligent Investor by Benjamin Graham | Warren Buffett ki favourite book. Value investing ka Bible hai. | 👉 Buy on Amazon |
| 2. Common Stocks and Uncommon Profits by Philip Fisher | Long-term thinking aur qualitative analysis seekhne ke liye best. | 👉 Buy on Amazon |
| 3. One Up on Wall Street by Peter Lynch | Aam aadmi bhi kaise great investor ban sakta hai – simple language. | 👉 Buy on Amazon |
| 4. The Dhandho Investor by Mohnish Pabrai | Indian-origin investor ki simple & powerful value investing approach. | 👉 Buy on Amazon |
| 5. Value Investing and Behavioral Finance by Parag Parikh | Indian market ke examples ke sath likhi gayi rare book. | 👉 Buy on Amazon |
📈 Stock Investing Example:
You calculated that the intrinsic value of HDFC Bank = ₹ 1800
Market price now = ₹ 1300
To Margin of Safety:
₹1800 – ₹1300 = ₹500
% MOS = (500 ÷ 1800) × 100 = ~27.7%
📌 Good margin of safety = 20% to 40%
👉 You are buying a stock worth ₹1800 for ₹1300 = smart investing!
I always buy stocks when they have at least a 25% margin of safety.
Because there is no certainty in the stock market, but safety is in our hands, right?
You too should follow this rule in your investing journey – trust me, it can be a game-changer.
“What is Fundamental Analysis? Beginner’s Guide to Picking Profitable Stocks in India” read also
🕰️ 4. Hold for Long-Term
🔍 Simple Meaning:
“Buy stock in a good company and hold it for the long term – without worrying about the daily volatility.”
In the stock market, prices keep rising and falling in the short term. But in the long term, only good companies win.
📚 Real-Life Example:
Imagine:
You bought ITC stock for ₹180 in 2020
In 2020–2021 people were joking:
“ITC toh kabhi nahi chalega, sirf sideways jaa raha hai!”
What did you do?
Ignored short-term things
Hold the stock patiently
Result:
ITC became ₹450+ in 2025!
➡️ More than 2.5x return 🎯
🔧 Tools I Personally Use
| Tool | Use | Link |
| Tickertape | Stock Analysis | 👉 Try Tickertape Pro |
| Zerodha | Trading & Investing | 👉 Open Free Account |
| Smallcase | Ready-made value portfolios | 👉 Explore Smallcases |
📺 Recommended YouTube Videos (Hindi + English Mix)
How to Value a Stock? DCF Method (Hindi)
✅ FAQs: Value Investing India Me
Q. Kya value investing beginner ke liye sahi hai?
Haan, agar aap seekhne aur long term sochne ke liye ready ho.
Q. Value investing vs. growth investing?
Value investing me hum undervalued stocks kharidte hain, growth investing me future potential dekhte hain.
Q. Kitna time lagega paisa banane me?
Normally 3–5 saal ka time frame hona chahiye.
💭 Final Thoughts – My Experience
I feel that the most important things in the stock market are discipline and patience.
Value investing can seem boring, but when the money doubles or triples… then the real fun begins.
What do you think? Let us know by commenting below 👇