Synopsis:
The shares of these particular companies are in focus as they trade below their book value, backed by their rock-solid fundamentals.
Book value refers to a company’s net worth, which is determined by subtracting total liabilities from total assets. It reflects the value of the company’s equity as shown in its financial statements. The book value per share is particularly useful for investors, as it gives them an idea of what they might receive if the company were to be liquidated.
In this article, we will dive into three companies that are fundamentally sound and trading below their book value.
1. Maharashtra Scooters
Maharashtra Scooters Ltd is mainly involved in the production of pressure die casting dies, jigs, fixtures, and die-cast parts for the Indian two- and three-wheeler industry. The company has two segments: Manufacturing and Investments. Apart from its main manufacturing activities, it handles treasury operations and monitors investments of surplus funds.
It reported a revenue of Rs 184 crores in FY25, down by 17.48 percent from its FY24 revenue of Rs 223 crores. It posted a net profit of Rs 214 crores in FY25, up by 7.54 percent, from its FY24 net profit of Rs 199 crores. The company is currently trading at Rs 14,498 per share and has a book value of Rs 27,005.
2. Ramco Industries
Ramco Industries Limited is involved in various sectors like building products, textiles, and wind power generation in India. They produce non-asbestos fiber cement sheets, calcium silicate boards, and a range of construction materials, including jointing compounds, screws, wool mats, and ceiling accessories.
On top of that, the company provides services such as project execution, site quality inspections, and training in dry construction techniques. Plus, they also sell electricity generated from their windmills.
It reported a revenue of Rs 1,659 crores in FY25, up by 10.52 percent from its FY24 revenue of Rs 1,501 crores. It posted a net profit of Rs 181 crores in FY25, up by 71 percent, from its FY24 net profit of Rs 106 crores. The company is currently trading at Rs 289 per share and has a book value of Rs 488.
3. Karnataka Bank
Karnataka Bank is a private sector bank that provides a range of services, including retail and corporate banking, as well as treasury operations. They offer loans tailored for individuals, MSMEs, and farmers through products like KBL Micro Mitra and Mahila Udyog.
Additionally, the bank manages investments, foreign exchange, and provides online trading, locker services, and bill payment options through both their branches and digital platforms.
The company reported a revenue of Rs 9,014 crores in FY25, up by 8.61 percent from its FY24 revenue of Rs 8,299 crores. However, the company reported a net profit decline of 2.60 percent to Rs 1,273 crore in FY25 from Rs 1,307 crores in FY24. The company is currently trading at Rs 192 per share and has a book value of Rs 320.
Written by Satyajeet Mukherjee
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