Book value is generally the value of a company based on its balance sheet. It reflects the net worth of a company based on its accounting records and is often used to identify whether a stock is overvalued or undervalued as compared to its market price. The formula to calculate book value is simply deducting liabilities from its assets.
In this article, we will look at some of the companies in India whose book value per share exceeds their current market value.
Oil and Natural Gas Corporation Ltd
ONGC (a Maharatna company) is the largest crude oil and natural gas Company in India, contributing around 71 per cent to Indian domestic production. Crude oil is the raw material used by several companies such as IOC, BPCL, HPCL and MRPL to produce petroleum products like Petrol, Diesel, Kerosene, Naphtha, and Cooking Gas LPG.
With a market cap of Rs 3,09,915 crores. It made a 52-week high of Rs 345 per share, down by 29 percent, from its CMP of Rs 246.38 per share. It has an ROE and ROCE of 16.3 percent and 18.4 percent respectively. It has a book value per share of Rs 280 as compared to its CMP of Rs 246.38, i.e., trading at a discount of 12 percent.
Bank of Baroda Ltd.
Bank of Baroda Ltd offers a wide range of banking products and services to individuals, government departments, and corporate customers domestically and internationally. It provides various accounts, term deposits, and loans, including home, personal, vehicle, SME, agriculture, and corporate loans.
The bank also offers trade finance, export/import finance, supply chain finance, and digital payment solutions. Additionally, it provides insurance products, investment services, merchant banking, forex, remittances, and credit/debit cards.
With a market cap of Rs 1,18,299 crores. It made a 52-week high of Rs 299.70 per share, down by 24 percent, from its CMP of Rs 228.53 per share. It has an ROE and ROCE of 16.7 percent and 6.33 percent respectively. It has a book value per share of Rs 270 as compared to its CMP of Rs 228.53, i.e., trading at a discount of 15 percent.
Piramal Enterprise Ltd.
Piramal Enterprises Ltd is one of India’s leading NBFC company with assets worth $1000 crore, with a network of over 400 branches across 26 states/Union Territories, it a wide range of financial products and solutions across retail and wholesale lending, fund-based platforms, and investments.
It offers a wide range of financial services, such as housing finance, structured debt, construction finance, and lease rental discounting for the real estate sector. It provides funding solutions for infrastructure, renewable energy, roads, industrials, and auto components. It also operates a distressed asset investing platform, offers life insurance services, and engages in fund management and property leasing.
With a market cap of Rs 22,190 crores. It made a 52-week high of Rs 1,275 per share, down by 22.5 percent, from its CMP of Rs 987.85 per share. It has an ROE and ROCE of 1.25 percent and 3.91 percent respectively. It has a book value per share of Rs 1,194 as compared to its CMP of Rs 987.85, i.e., trading at a discount of 17 percent.
Tata Investment Corporation Ltd
Tata Investment Corporation Ltd is an NBFC company and it operates as an investment company in India. Its activities primarily include investing in long-term investments in equity shares, equity-related securities and other securities of companies in a wide range of industries. The company also distributes mutual funds and other investment related securities.
With a market cap of Rs 31,951 crores. It made a 52-week high of Rs 8,074.25 per share, down by 21 percent, from its CMP of Rs 6,317.70 per share It has an ROE and ROCE of 1.55 percent and 1.67 percent respectively. It has a book value per share of Rs 7,266 as compared to its CMP of Rs 6,317.70, i.e., trading at a discount of 13 percent.
JSW Holdings Ltd
JSW Holdings Ltd is a Non-Banking Financial Company (NBFC) that forms the investment arm of the JSW Group. The company makes strategic investments in new ventures promoted by the JSW Group. As of March 31, 2024, the company reported an asset size of over Rs 100 crore. It holds 7.42% equity shares of JSW Steel Limited, the market value of which stands close to Rs 15,000 crores. The Company also holds other strategic investment in Group Companies.
With a market cap of Rs 25,519 crores. It made a 52-week high of Rs 24,698 per share, down by 7.4 percent, from its CMP of Rs 22,821.55 per share. It has an ROE and ROCE of 0.55 percent and 0.72 percent respectively. It has a book value per share of Rs 28,642 as compared to its CMP of Rs 22,821.55, i.e., trading at a discount of 20 percent.
Written by Ashok Kumar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on AG Investment are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. AG Investment or the author are not liable for any losses
Monopoly stocks refer to shares of companies that dominate their industry or market, with little to no competition. These companies often have a strong market presence, pricing power, and the ability to generate consistent profits.
Higher return ratios are financial metrics that measure a company’s ability to generate profits relative to its equity, assets, or investments. Key ratios include Return on Equity (ROE), Return on Assets (ROA), and Profit Margins. Higher values of these ratios indicate better profitability, efficient use of resources, and strong financial performance, making such companies attractive to investors.
It indicates that the investment is providing higher profits compared to the amount of risk or capital invested. A higher return ratio is often seen as a positive sign for investors, as it suggests more efficient and profitable investments.
Coal India Ltd
Coal India is the largest coal producer in the world, accounting for over 80 percent of India’s coal production. It holds a monopoly in the coal mining industry in India, providing fuel to power plants and industries across the country.
The stock has a strong ROE of 38 percent and a robust ROCE of 41.6 percent. Additionally, the company’s ROA stands at 13.7 percent, reflecting efficient asset utilization.
Indian Railway Catering & Tourism Corporation Ltd
IRCTC is the exclusive provider of online railway ticketing and catering services for Indian Railways. It has a monopoly in online train ticketing and catering services for the Indian Railway network.
The stock has a strong ROE of 40.4 percent and a robust ROCE of 53.8 percent. Additionally, the company’s ROA stands at 20.6 percent, reflecting efficient asset utilization.
CDSL (Central Depository Services Limited)
CDSL is one of the two depositories in India, offering dematerialization services for securities. It has a significant market share in the Indian securities market, and though it faces competition from NSDL, it holds a dominant position in the sector.
The stock has a strong ROE of 31.3 percent and a robust ROCE of 40.3 percent. Additionally, the company’s ROA stands at 25.9 percent, reflecting efficient asset utilization.
HAL (Hindustan Aeronautics Limited)
HAL is a state-owned aerospace and defense company in India, primarily involved in the design and manufacture of aircraft, helicopters, and defense systems. It has a monopoly in the Indian defense aviation sector, being the main supplier for the Indian Armed Forces.
The stock has a strong ROE of 28.9 percent and a robust ROCE of 38.9 percent. Additionally, the company’s ROA stands at 10.1 percent, reflecting efficient asset utilization.
CAMS (Computer Age Management Services) Ltd
CAMS is a leading provider of registrar and transfer agent (RTA) services to mutual funds in India. It holds a dominant position in the mutual fund industry, with a significant market share in RTA services.
The stock has a strong ROE of 40.5 percent and a robust ROCE of 49.8 percent. Additionally, the company’s ROA stands at 28.2 percent, reflecting efficient asset utilization.
IEX (Indian Energy Exchange) Ltd
IEX is the leading power exchange in India, where electricity is traded in the spot market. It has a monopoly in the electricity trading market, offering platform-based electricity trading services to utilities, businesses, and traders.
The stock has a strong ROE of 37.7 percent and a robust ROCE of 50 percent. Additionally, the company’s ROA stands at 20.5 percent, reflecting efficient asset utilization.
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on AG Investemnt are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. AG Investemt or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
भले ही बाजार में उतार-चढ़ाव के साथ व्यापार करना जारी है, लेकिन मैं आपको लंबी अवधि के लिए सबसे अच्छा शेयर निवेश दे रहा हूं। बाजार की खबरों और शेयर की चाल के आधार पर, मैं इन शेयरों को नकदी के लिए चुन रहा हूं।
यहां विभिन्न क्षेत्रों के लिए कुछ स्टॉक हैं जिनमें काफी संभावनाएं हैं और लंबी अवधि में अच्छा और स्थिर रिटर्न देने की संभावना है।
1- Electric Vehicles
टेस्ला ने जो हासिल किया है उसे दोहराने की कोशिश कर रही बहुत सी कंपनियां हैं। इस बीच भारत के पास भी एक मौका है:
टाटा मोटर्स (अगले 15 वर्षों के लिए खरीदना और धारण करना चाहिए) टाटा केमिकल्स टाटा पावर
ये सभी मिलकर इलेक्ट्रिक वाहनों के लिए एक छोटा सा साम्राज्य तैयार कर रहे हैं।
2- FMCG
Hindustan Unilever Ltd.
ITC Ltd.
Nestle India Ltd.
FMCG एक लगातार विकसित होने वाला व्यवसाय है। ये कंपनियां हर साल हर उत्पाद के साथ मूल्य का विस्तार करती हैं।
3- Health Care
Dr. Reddy’s Laboratories Limited
Apollo Hospitals Enterprise Limited
Divis Laboratories ltd
लंबे समय में यह सेक्टर निराश नहीं करेगा।
यदि आप इस निवेश के बारे में अधिक चाहते हैं, तो आप नीचे टिप्पणी कर सकते हैं या हमें ईमेल आईडी [email protected] पर लिख सकते हैं।
