The shares of one of the leading Infrastructure stocks, specialising in providing engineering, procurement, and construction (EPC) services, hit a 5 percent lower circuit after PFC filed a complaint with the Economic Offences Wing (EOW) against the company.
Price action
With a market capitalization of Rs. 383.06 crores on Wednesday, the shares of Gensol Engineering Limited hit a 5 percent lower circuit, making a low of Rs. 100.80 per share compared to its previous closing price of Rs. 106.10 per share.
What Happened
Gensol Engineering Limited, engaged in providing engineering, procurement, and construction (EPC) services, is in focus as Power Finance Corporation Ltd (PFC), a government-run NBFC, has filed a complaint with the Economic Offences Wing (EoW) of Delhi Police against Gensol Engineering Ltd for allegedly submitting falsified documents.
The company is accused of forging letters from PFC and IREDA to falsely indicate timely debt repayments, which were discovered during verification by credit rating agencies. PFC is also reviewing the matter internally under its anti-fraud policy. This marks the fourth investigation into Gensol and its EV arm, BluSmart, with ongoing probes by SEBI, the Ministry of Corporate Affairs, and the Enforcement Directorate.
Gensol Engineering at a glance
Gensol Engineering has a strong foundation in technical advisory services and has grown significantly over the years. The company currently boasts over 33,693 MW+ in its portfolio. In the trailing twelve months (TTM), it has reported a total revenue of Rs. 1,477 Crore and has an unexecuted order pipeline worth Rs. 3,400 Crore.
The company also has contracts worth over Rs. 2,000 Crore under award and a total renewable revenue visibility exceeding Rs. 8,300 Crore.
Business segment
Gensol’s 73.82 percent of operating revenue is from Solar EPC, 26.12 percent from Lease, and the remaining 0.05 percent from Others for the December 2024 quarter. The Operating profit for Solar EPC, despite an increase in revenue growth year on year, the profits declined. Further, Leasing turned profitable from a loss in the same period.
Order Book & Fleet
The unexecuted order book as of 31st December 2024 stood at around Rs. 7,000 crore for the Solar Segment. They have more than 8,300 EVs on lease.
Book value represents a company’s net worth based on its balance sheet. It’s calculated by subtracting total liabilities from total assets. This value helps investors assess whether a stock is overvalued or undervalued compared to its current market price. Essentially, it shows what the company is worth on paper according to its financial records.
In this article, we will look at some of the companies in India whose book value per share exceeds their current market value.
1. Summit Securities Ltd
Summit Securities Limited is a Mumbai-based non-banking financial company (NBFC) that focuses on investment and financial activities. It primarily makes long-term investments, mainly in equity markets, with a preference for companies in the real estate sector. The company was originally known as RPG Itochu Finance Limited and was incorporated on January 30, 1997.
The company reported a revenue of Rs 102 crore in FY24, up by 100 percent, from its FY23 revenue of Rs 51 crores. It has a net profit of Rs 76 in FY24, up by 105 percent, from its FY23 net profit of Rs 37 crore. It has a book value per share of Rs 10,300 as compared to its CMP of Rs 2,044, i.e., five times its CMP.
2. Kalyani Investment Company Ltd
Kalyani Investment Company Limited is a core investment company based in Pune, India, and was incorporated in 2009. It focuses on investing in group companies across sectors such as forging, steel, power, chemicals, and banking. As a non-deposit taking firm, it mainly holds long-term investments. The company operates as a subsidiary of Sundaram Trading and Investment Private Limited.
The company reported a revenue of Rs 67 crore in FY24, up by 19 percent, from its FY23 revenue of Rs 56 crores. It has a net profit of Rs 70 crore in FY24, up by 20 percent, from its FY23 net profit of Rs 58 crore. It has a book value per share of Rs 24,032 as compared to its CMP of Rs 4,644, i.e., five times its CMP.
3. Zuari Industries Ltd
Zuari Industries Limited, based in Gurugram and incorporated in 1967, operates across multiple sectors including agriculture, engineering, real estate, power, furniture, and financial services both in India and abroad.
The company’s business segments include engineering services, furniture manufacturing, real estate development, sugar production, power generation from by-products, ethanol manufacturing, investment services, and management consultancy. It also offers insurance and commodity broking services, along with mutual fund distribution.
The company reported a revenue of Rs 838 crore in FY24, down 12 percent, from its FY23 revenue of Rs 955 crores. It has a net profit of Rs 713 crore in FY24, up by 130 percent, from its FY23 net profit of Rs 309 crore. It has a book value per share of Rs 1,717 as compared to its CMP of Rs 280, i.e., six times its CMP.
A prominent chemical stock is gaining investor attention with its bold growth projections for the coming years. The company is targeting a 20 percent rise in revenue and a 27 percent boost in EBITDA, supported by a well-defined expansion strategy. This forward-looking approach underscores its strong positioning in the chemical sector and highlights a promising growth trajectory.
Price Action
During Thursday’s trading session, the share price of Vinati Organics Ltd reached an intra-day high of Rs.1,640.00 per share, rising slightly from its previous close of Rs.1,625.10 per share. However, later the stock declined before closing at Rs.1,625.30 each. Over the past five years, the shares have delivered over 86 percent returns.
Future Outlook
Vinati Organics is projecting a 20 percent CAGR over the next three years, driven by strong demand for its key products, especially ATBS. The company expects a 15–20 percent rise in both revenue and EBITDA over the next two years, supported by stable product pricing and a targeted EBITDA margin of 26–27 percent. Despite minimal exposure to U.S. tariffs, currently averaging 7.5 percent, the company has opted against setting up a manufacturing base in the U.S. to avoid potential duty hikes.
Meanwhile, the industry is seeking anti-dumping duties of 20 percent on Chinese antioxidants. Although the proposed tariffs have limited impact on Vinati Organics, the company remains proactive in strengthening its market presence. With demand staying firm, it continues to focus on geographic expansion and maintaining growth momentum in the near term.
Manufacturing Facilities and Developments
Vinati Organics runs two state-of-the-art manufacturing facilities in Maharashtra, one in Mahad (Raigad) and the other in Lote Parashuram (Ratnagiri). These plants are accredited with prominent certifications, underscoring the company’s strong focus on quality, environmental sustainability, and workplace safety. The company exports its products to over 35 countries across key markets such as the US, South America, Europe, and Asia.
Financial Performance
Vinati Organics Ltd reported remarkable financial growth for Q3 FY25, with revenue soaring to Rs.522 crore, reflecting an increase of 17 percent compared to Rs.448 crore in Q3 FY24. Furthermore, the company’s Profit After Tax (PAT) surged by 25 percent, rising to Rs.96 crore from Rs.77 crore in the similar time period.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 18.82 percent and a Return on Equity (ROE) of 14.34 percent. Its Price-to-Earnings (P/E) ratio stands at 43.25, lower than the industry average of 53.28. Furthermore, the company maintains a current ratio of 3.51, a debt-to-equity ratio of nil, and an Earnings Per Share (EPS) of Rs.37.27.
Business Overview
Vinati Organics Ltd. was founded in 1989 and is headquartered in Mumbai, Maharashtra. The company operates within the chemical manufacturing sector, specializing in the production of specialty chemicals and organic intermediates. Renowned as the world’s largest producer of Isobutyl Benzene (IBB) and 2-Acrylamido 2 Methylpropane Sulfonic Acid (ATBS), Vinati Organics also supplies a range of specialty products, such as methyl 4 tertiary butyl benzoate, to industries including pharmaceuticals, cosmetics, and personal care.
The share of this small-cap company, engaged in the iron and steel manufacturing business, jumped up to 8 percent, after the Board of directors declared capex plans of Rs. 1,015 Crores to expand operational capacities.
Price movement
With the market capitalization of Rs 11,205 crores, the share price of Gallantt Ispat Limited is up by 4 Percent compared to the previous close of Rs 449.05, and made a day’s high of Rs 486.30.
What Happened
They have announced a capex of Rs 1,014 Crores for the below expansion and Captive Solar Power, which shall be funded by the Company through Internal Accruals without borrowing any debt, and it shall be completed by March 2026.
Product Units
Unit
Existing Capacity
Proposed Addition in Capacity
Total Capacity After Addition
Steel Billets
MT
528000
272250
800250
Rolling Mill
MT
528000
277200
805200
Sponge Iron
MT
544500
115500
660000
Pellet
MT
792000
198000
990000
Captive Power Plant (Thermal and Waste Heat Recovery Boiler)
MW
78
22
100
Captive Solar Power Plant
MW
0
100
100
About the company
Gallantt Ispat Ltd. is a company primarily focused on iron and steel manufacturing, including products like sponge iron, billets, and TMT bars. They also have ventures in food grains, selling wheat flour products like Atta, Maida, and Suji. Additionally, the company has a real estate project, Shalimar Gallantt, a group housing project in Lucknow.
Financial Highlights
This company reported a revenue of Rs 1,118 Crores in Q3 FY25 up by 5 percent, from it Q3 FY24 revenue of Rs 1,063 crores, It posted a net profit of Rs 114 crore in Q3 FY25, up by 119 percent, from its Q3FY24 net profit of Rs 52 crores.
Gold is considered one of the safest investments around the world. And during uncertainty, Economic crises, and Geopolitical tensions, it maintains its value while currencies depreciate and equity markets underperform. Having a finite supply which makes it a very valuable resource, while paper currency can be printed irrationally.
Gold futures Price on MCX has reached a high of 95,8001w, rallying over 6 percent in the past week and over 10 percent in the last 3 months, and Gold prices in the US have reached $3,341 / OZ.
WHY GOLD IS AT AN ALL-TIME HIGH?
Several reasons can be attributed to the Gold rally, as it has outperformed the major assets around the world. For the recent rally of gold, one of the primary reasons can be attributed to the recent trump tariff announcement. These announcements can lead to political instability and economic uncertainty with potential disruptions to global trade.
Gold has been rallying even before the trump announcement, and the reason for that can be attributed to Central banks around the world buying gold. The Central banks have been continuously increasing their gold reserves, with most gold being bought by Poland, and in total, the central banks have increased their reserve by 1,045 tonnes.
There are several factors that can influence gold prices, and some of the common factors are Economic factors like Inflation, Interest rates, US dollar strength, and Economic Growth and Stability. On a Geopolitical Basis, factors like Political instability and Trade wars affect gold prices. Other Factors that affect gold prices are Market sentiment, Government policies & regulation, and supply and Demand.
GOLD PERFORMACNE
Gold has outperformed Sensex in a 3-year, 10-year, and 15-year time frame. On a 15-year basis, gold has given a CAGR return of 11.50 percent compared to 10.30 percent for Sensex. On a 5-year basis, Gold has given a return of 14.40 percent compared to a 14.60 percent return of Sensex. On a 3-year time frame, gold outperformed Sensex with a 16.80 percent return and Sensex with 11.60 percent
GOLD TARGET
Generally, the target for gold is actively given by foreign brokerages and JP Morgan has given a forecast of $3,000/oz, HSBC has given a forecast of $3,015/oz, and Deutche Bank has given a forecast of $3,139 – 3700/ oz, and the target given by UBS is for $3200/oz. All these targets are for US gold Futures.
