With a wide ranging analysis and views about the possible reversal in share prices of equities in global markets in 2009, many research companies are coming out with their own take on the stocks that could outperform the market.

Japan based Nomura has issued a report on Asian stocks in a report called ‘Titans, Heroes and Mortals.’ The analysis of the chosen are done using Graham and Dodd approach of value investing which incidentally is also used by Warren Buffet.

Under this approach, deeply depressed stocks are chosen which have a high P/E but historical low P/E, high dividend yield, price below book value and net current asset value. The approach also consider total debt less than book value, current ratio greater than two, earnings growth of at least 7% for the past ten years, and no more than a 5% decline in earnings in more than two of those ten years.

For India, the report has chosen 13 stocks:

Titans - companies that are best of breed and which would dominate their respective industries in the coming years and are using the current slowdown as an opportunity. Hindustan Unilever, Larsen & Toubro, NTPC, Reliance Industries and Sun Pharma.

Heroes - companies that can surprise investors and become best of breed Glenmark Pharma, IVCRL Infra, Marico, Maruti Suzuki India, Piramal Healthcare and Tata Power.

Mortals - companies that will live forever in the shadow of the titans and heroes, and always follow the leaders in the market TVS and Unitech

The list might have done better if it has chosen the companies under different sectors and then classified them as Titan, Hero or Mortal.