New Delhi, Aug. 11 -- Most investors treat a 52-week high as a warning. The reasoning seems obvious: a stock near its yearly peak has already run up, the easy money has been made, and buying now means paying close to the highest price anyone has paid in 12 months.

Value hunters instinctively look at the other end of the list. That instinct is usually right, but it can miss a specific and potentially profitable situation.

A share price and a valuation multiple can move independently. The price is the numerator; earnings and book value sit underneath it.

When profits grow faster than the share price, the multiple contracts even as the stock climbs. The company becomes more valuable and, at the same time, cheaper.

With that context, here...