5 Undervalued Stocks That Are Trading Lower Than Their Book Value

Indian markets are starting to show weakness and joining the global markets, and the stocks are soaring sharply in recent trading sessions. In these conditions, many investors in the equity markets have a question of where to invest and whether to take part in the markets or not.

Undervalued stocks are a good choice to look for in the soaring markets. An investor should check for book value and market price to check if the stock is undervalued. The stock is undervalued if the market price is lower than the book value.

So, here is the list of undervalued stocks that are trading below their book value.

Phoenix International India Ltd

Phoenix International Ltd., an Indian company, is a supplier and manufacturer of shoe uppers, and the Company also leases out buildings. The Company was first incorporated as a private ltd in 1987 and then converted into a public company in 1988.

The stock's current market price is Rs. 23.3 with a market capitalization of Rs. 39.1 Crores. The Return On Equity and Return On Capital Employed of the Company is respectively 0.69% and 2.29% over the 5 years. The stock is highly undervalued in terms of book value as the book value of the stock is Rs. 201 which is almost 9 or 10X its current market value.

Nalwa Sons Investments Ltd.

Nalwa Sons Investments Ltd is a small-cap company in the finance sector. The two main activities of Nalwa Sons Investments Ltd, a non-NBFC company, are investing in shares and lending money to the group firms.

The stock's market capitalization is over Rs. 797 Crores and is currently trading for Rs. 1,551. The Return On Equity and Return On Capital Employed of the Company is respectively 1.33% and 1.22% over the 5 years. The stock is currently undervalued as the book value of the stock is Rs. 15,457 and it is also 10X its current value.

Ganges Securities Ltd.

Ganges Securities Ltd., incorporated in 2015, is a member of the K.K. Birla Group. The Company is a Core Investment Company that specializes in buying, selling, and investing in shares of group companies and real estate. Additionally, the Company also operates a tea division.

It is a small cap company with over Rs. 105 Crores market capitalization. The current market price of the stock is Rs. 105 and the all-time high of the stock is Rs. 153, and an all-time low of the stock is Rs.75.3. The Return On Equity and Return On Capital Employed of the Company is respectively 3.19% and 3.86% in over the 5 years of the period. The stock is currently undervalued as it is trading below its book value, and the book value of the stock is Rs. 623.

SIL Investments Ltd.

SIL Investments Ltd. is a small-cap company in the capital market sector. The Company is involved in commercial finance and investments and was registered as an NBFC in 2009. It has over 5 subsidiary companies under its business, including SIL Properties Limited, SCM Investment & Trading Co. Limited, and SIL International Pte. Limited, RTM Properties Limited, RTM Investment & Trading Co. Limited.

The stock's current market price is Rs. 296 with a market capitalization of Rs. 314 Crores. The Return On Equity and Return On Capital Employed of the Company is respectively 5.21% and 6.51% over the 5 years. The stock is undervalued in terms of book value as the book value of the stock is Rs. 2221, which is nowhere near its current market price.

JSW Holdings Ltd

JSW Holdings is a small-cap company investing division of the JSW Group. The Company is a Non-Banking Financial Company primarily engaged in the business of financing and investing. The company's main investments are in the steel companies of the JSW group.

The stock's market capitalization is over Rs. 4,496 Crores and is currently trading for Rs. 4,050. The Return On Equity and Return On Capital Employed of the Company is 1% and 1.12%, respectively, over the 5 years. The book value of the stock is Rs. 17,722 which points out the stock is highly undervalued in terms of book value.

Disclaimer

Greynium Information Technologies, the Author, are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.