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.
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 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
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