Datawatch: Stocks trading at discount to book value

Datawatch: Stocks trading at discount to book value

As on September 14, 2009, the BSE Sensex was up 113% from its 52-week low. The index is now trading with a price-to-book value (P/BV) of 3.91 and price-earning (PE) of 21. In today's Datawatch, we look at stocks that are still trading at discount to book value in the market.

Data coverage

We have taken companies listed on the BSE whose price is above Rs 50 per share and the P/BV ratio is below 1.

Price-to-book ratio is used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share. A lower than 1 P/B ratio could mean that the stock is undervalued.

The analysis suggested that stocks that are trading below their P/BV ratio comprise largely of textile companies. Other major industries includes small and medium-sized finance, realty and paper industry companies. Notable companies trading at lowest P/BV include DS Kulkarni Developers, Nitco, Williamson Magor, Gitanjali Gems, Subex, Kolta Patil Developers, GSFC, Gujarat Alkali, etc.

No	Company	Market Price	Book Value (BV)	P/BV
		11/09/09	(Rs)
1	Sir Shadi Lal	137	137	1
2	Tata Sponge Iron	226	227	1
3	Somany Ceramics	92	92	0.99
4	Kalyani Steels	117	118	0.99
5	Karnataka Bank	128	129	0.99
6	IOL Chemicals	60	61	0.98
7	Eveready Inds.	66	67	0.98
8	Rane Brake Lin.	87	89	0.98
9	Cera Sanitary	111	114	0.98
10	Raymond	182	187	0.98
11	ECE Inds.	219	224	0.98
12	S C I	143	147	0.97
13	Deepak Fert	87	91	0.96
14	Nu Tek India	89	92	0.96
15	Gillanders Arbut	102	106	0.96
16	Punjab Chemicals	146	153	0.96
17	Wheels India	187	195	0.96
18	SE Investments	214	222	0.96
19	Wires & Fabriks	67	71	0.95
20	Syndicate Bank	84	88	0.95
21	Repro India	100	105	0.95
22	Allahabad Bank	106	111	0.95
23	J K Cements	123	130	0.95
24	Hinduja Ventures	274	292	0.94
25	Universal Cables	69	74	0.93
26	Archies	110	118	0.93
27	Mah. Scooters	162	175	0.93
28	Menon Pistons	61	66	0.92
29	Yuken India	82	89	0.92
30	Force Motors	158	173	0.92
31	Glost.Jute Mill.	180	196	0.92
32	Federal Bank	233	253	0.92
33	Mukand	56	62	0.91
34	Mahindra Forg.	77	85	0.91
35	Shakti Met-dor	117	128	0.91
36	Aries Agro	62	69	0.9
37	Indoco Remedies	204	227	0.9
38	Hindalco Inds.	124	140	0.89
39	Insecticid.India	70	80	0.88
40	Moser Baer (I)	88	100	0.88
41	U B Holdings	185	209	0.88
42	Ramsarup Inds	80	93	0.87
43	I O B	95	109	0.87
44	Rainbow Papers	100	115	0.87
45	Oriental Bank	224	258	0.87
46	Simplex Realty	281	324	0.87
47	Godawari Power	134	155	0.86
48	DIC India	169	196	0.86
49	Royal Orch.Hotel	60	70	0.85
50	Venky's (India)	143	167	0.85
51	Arih.Found.Hsg.	172	202	0.85
52	IP Rings	51	61	0.84
53	Torrent Cables	121	144	0.84
54	GE Shipping Co	272	324	0.84
55	Dena Bank	56	68	0.83
56	DCM Shriram Con.	62	74	0.83
57	RSWM Ltd	72	87	0.83
58	Albert David	81	98	0.83
59	Uflex	95	114	0.83
60	India Glycols	113	136	0.83
61	Lak. Electrical	161	193	0.83
62	Sundaram Brake	186	224	0.83
63	Gulshan Polyols	92	113	0.82
64	Siyaram Silk	124	152	0.82
65	Aeonian Invest.	151	184	0.82
66	ABC Bearings	53	66	0.81
67	Inv.& Prec.Cast.	58	71	0.81
68	IFB Agro Inds.	64	80	0.8
69	T N Newsprint	77	96	0.8
70	Krone Comm.	86	107	0.8
71	Nilkamal Ltd	133	165	0.8
72	Videocon Inds.	237	295	0.8
73	Kernex Microsys.	82	104	0.79
74	West Coast Paper	64	82	0.78
75	Sukhjit Starch	96	123	0.78
76	Cosmo Films	105	134	0.78
77	Garware-Wall Rop	66	86	0.77
78	Steelcast	79	102	0.77
79	J L Morison(I)	398	517	0.77
80	Welspun India	58	76	0.76
81	Manugraph India	59	78	0.76
82	M M Forgings	60	79	0.76
83	Rajratan Global	75	99	0.76
84	Banswara Syntex	51	68	0.75
85	G N F C	98	130	0.75
86	Aditya Bir.Chem.	75	103	0.74
87	Bannari Amm Spg.	74	102	0.73
88	Aarti Drugs	75	103	0.73
89	Emmsons Intl.	79	108	0.73
90	Valecha Eng.	86	118	0.73
91	Rane Holdings	94	130	0.73
92	Vardhman Textile	161	220	0.73
93	Jindal Photo	144	200	0.72
94	Surya Roshni	54	77	0.71
95	Man Inds.	55	77	0.71
96	Narmada Gelatine	71	101	0.71
97	Transpek Inds.	62	88	0.7
98	Sutlej Textiles	79	113	0.7
99	Apcotex Industri	68	99	0.69
100	SIL Investments	80	117	0.69
101	Seshasayee Paper	119	171	0.69
102	Bajaj Auto Fin	206	297	0.69
103	Austin Engg Co	66	96	0.68
104	Ajanta Pharma	88	128	0.68
105	Voith Paper	129	190	0.68
106	Century Enka	155	229	0.68
107	Mac Charles(I)	189	276	0.68
108	Paushak	51	76	0.67
109	Kalyani Forge	130	195	0.67
110	Electrotherm(I)	262	390	0.67
111	Panasonic Energy	51	78	0.66
112	Can Fin Homes	79	120	0.66
113	Sh. Dinesh Mills	100	152	0.66
114	Guj Alkalies	112	170	0.66
115	G S F C	161	242	0.66
116	ITD Cem	201	304	0.66
117	Rane Engine Val	101	155	0.65
118	Loyal Textile	115	176	0.65
119	Atul	75	117	0.64
120	R Systems Intl.	85	135	0.63
121	Sandesh	163	260	0.63
122	Vardhman Hold.	216	341	0.63
123	Super Sales Ind	94	154	0.61
124	Deepak Nitrite	128	211	0.61
125	Bhagiradha Chem	52	86	0.6
126	Kolte Patil Dev.	51	86	0.59
127	Bimetal Bearings	179	304	0.59
128	Poddar Developer	55	95	0.58
129	Subex	72	130	0.56
130	First Leasing	51	93	0.55
131	Tulsyan NEC	60	110	0.55
132	Essar Shipping	62	114	0.55
133	Vakrangee Soft.	67	126	0.53
134	IVR-Prime Urban	81	153	0.53
135	Carol Info Serv.	65	126	0.52
136	Srinivasa Hatch	60	118	0.51
137	K P R Mill Ltd	69	135	0.51
138	Indian CardCloth	88	174	0.5
139	Albright & Wil.	102	204	0.5
140	Gitanjali Gems	114	226	0.5
141	Ambika Cotton	101	206	0.49
142	Cheviot Company	179	370	0.49
143	Kamat Hotels	59	124	0.48
144	Alfred Herbert	153	326	0.47
145	Williamson Magor	53	117	0.45
146	AP Paper	71	162	0.44
147	Sirpur Paper	54	130	0.41
148	Pokarna	57	142	0.4
149	Nitco	64	161	0.4
150	Ucal Fuel Sys.	54	141	0.39
151	D S Kulkarni Dev	59	166	0.35
152	VTM	66	198	0.33

Source: Capitaline

Disclaimer: Datawatch is purely intended to reveal interesting statistics. Moneycontrol sources all price information from BSE/NSE and company information from Religare Technova. Moneycontrol is not responsible for inaccuracy/non-updation of data. There is no intention whatsoever to arrive at any conclusion or recommend any stocks or sectors. Please consult your financial advisor before taking any investing decisions.

Source:Moneycontrol.com