After a 10% fall in the benchmark indices within a month, it becomes rather crucial for long-term investors to search for value among battered stocks. While it is not yet clear for how long the bearish trend in the equity market will continue, it has been noticed in the past that companies with sound business models along with good corporate governance practices are often the ones which lead the bounceback rally. Considering this, a steep fall presents an opportunity for retail investors to increase exposure to battered stocks, which meet two basic criteria — first, their business fundamentals should be intact and second, the possibility of downward revision in their earnings estimates should be slim. The ETIGlists some of the firms that fit the criteria. Axis Bank Axis Bank’s stock has fallen 23% from the high of Rs 613 in the past two months. The country’s third largest private bank was largely a corporate lender till a few years ago. But, a focused attempt to improve retail lending has helped the bank grow its loan book over industry average, while keeping its asset quality under control. Given its investments in branch network and retail customers, the bank is expected to grow in future at a decent rate. IRB Infrastructure Developers Close to 16% fall in IRB’s share price to Rs 212 makes it attractive for retail investors. In its roads projects division, the company’s gross toll collections grew by 21% to Rs 590.4 crore in the June 2015 quarter in comparison to the same quarter last year. Toll collections on its major projects such as Mumbai-Pune, Surat-Dahisar, Bharuch-Surat and Ahmedabad-Vadodara have been growing in the range of 12-21%. Besides this, the company’s construction order book of Rs 12,116 crore provides strong revenue visibility for the next two to three years. Larsen & Toubro (L&T) L&T has fallen 14% to Rs 1,533 in the past one month. Being India’s largest infrastructure company, it offers an opportunity to investors to participate in India’s growth story. It has an order book of Rs 1.6 lakh crore, including orders from power transmission, roads, defence, nuclear and aeronautical sectors. The company’s order inflows are rising gradually. This gives a strong revenue visibility for the next few years. Also, L&T has been maintaining its revenues, margins and order book guidance at a time when most of its peers are struggling. LIC Housing Finance India’s second largest housing finance company, LIC Housing Finance has grown its loan book at a CAGR of 28% in the past four years. In addition, its asset quality has remained healthy during this period. Its gross NPA is at a healthy 0.6% of the total assets. Given the secular growth in housing finance business, the company may continue to grow at a decent rate. Yes Bank Historically, Yes Bank’s deposits had been wholesale funded and therefore vulnerable to change in interest rates. However, over the past few years, the bank has been steadily increasing current account and savings account deposits. In addition, given low participation in project financing, its non-performing loans are under control. At present, its gross NPAs stood at 0.46% of its total loans. This makes the bank count itself among a few peers with healthy balance sheet. (Contributed by Ashutosh Shyam, Rajesh Naidu & Suraj Sowkar)