New Delhi, Oct. 7 -- Finding value in the Indian stock market is a real challenge.

The benchmark Nifty 50 has surged by more than 30% over the past two years, with broader indices following suit.

Robust earnings, policy continuity, and steady domestic flows have powered the rally. The side effect is that valuations across sectors have moved well above long-term averages. At around 22 times earnings, the Nifty 50 is no longer cheap.

Investors often gravitate toward the usual favourites such as companies with visible growth, strong balance sheets and leadership positions. But when everyone crowds into the same names, the scope for outsized returns narrows.

In such markets, opportunities arise from a bottom-up approach, where businesses ...