Mid-cap stocks trading below their book value represent a hidden area for investors seeking potential undervaluation. Book value, an accounting measure of a company’s net asset value, can provide a fundamental floor, and when a stock trades below this level, it might signal that the market is undervaluing the company’s assets and future earnings potential. Here is a list of a few mid-cap stocks trading below their book value
Steel Authority of India Ltd
Steel Authority of India Limited (SAIL) is one of the largest steel-making companies in India and one of the Maharatnas of the country’s Central Public Sector Enterprises. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials.
Market capitalization: Rs 46,881 crores
Price to book value (P/B):0.82
Book Value: Rs 139
Current Price: Rs 113.71
JSW Holdings Ltd
JSW Holdings Ltd is a core investment company (CIC) and is primarily engaged in the business of investing and financing. JSWHL is an Investment Company of the JSW Promoters Group, with its investment mainly in the Jindal Group of Companies, with other companies. The main business activities of the company are investment in shares, stocks, or other securities in India or abroad, and providing management consultancy services.
Market capitalization: Rs 25,821 crores
Price to book value (P/B):0.78
Book Value: Rs 29,659.73
Current Price: Rs 23,280
Piramal Enterprises Ltd
Piramal Enterprises Limited is one of India’s leading diversified non-banking financial companies, with assets worth ~$10 billion, with a network of over 400 branches across 26 states/Union Territories, offering a wide range of financial products and solutions across retail and wholesale lending, fund-based platforms, and investments
Market capitalization: Rs 21,819 crores
Price to book value (P/B):0.81
Book Value: Rs 1194.35
Current Price: Rs 967.95
Bank of India
Bank of India is an India-based bank. The Bank’s segments include Treasury Operations, Wholesale Banking, and Retail Banking. The Treasury operations segment includes the entire investment portfolio, which deals in government and other securities, money market operations, and foreign exchange operations
Market capitalization: Rs 52,401 crores
Price to book value (P/B):0.75
Book Value: Rs 152.47
Current Price: Rs 115.15
New India Assurance Company Ltd
New India Assurance Company Ltd is India’s largest non-life insurance company. It is promoted by the Government of India (GoI), holding 86% stake, it became one of 4 subsidiaries of General Insurance Company of India (GIC), but gained autonomy after GIC became a re-insurance company in 1999. The Company’s insurance products can be broadly categorized into the following product verticals: fire insurance, marine insurance, motor insurance, crop insurance, health insurance, and other insurance products.
Market capitalization: Rs 28,345 crores
Price to book value (P/B):0.93
Book Value: Rs 185.03
Current Price: Rs 172.07
Written by Likesh Babu S
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