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.
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.
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.
Written by Ashok Kunar