Invest for value in good businesses

I've been receiveing a number of emails on the growing Indian equity valuations. At a PE of 18.6 and rising, "the Indian market is expensive" - most say. If I can infer better, they mean - "I am not able to find undervalued stocks". Additionally, there are two pertinent concerns here - is the stock I am picking overly valued and second, if the market tanks then will my stock crash also.

There are a number of theories that investors subscribe to, but if you are conservative one then start seeing every stock as "excellent businesses to own". So, all investments should be factored on ... I will buy stocks where -
a) Stocks which have a P/E of less than 15 (they will survive the crash better)
b) Stocks of companies which are either #1 or #2 in their industry
c) Stocks which have an earnings (PAT) of 50 crs + on an average over the last 5 years

Some extra level of comfort can be derived if -
1. Sales of the company is greater than the market capitalisation of the company
2. Look for rising sales and profits (atleast 30% over LY)

I shall now be featuring a number of stocks which are good businesses and subscribe to some of the parameters given here.