Stocks with an ‘undervalued’ nature portray characteristics such as having a market value that is lower than their true intrinsic value. The process of investing in such undervalued stocks is called ‘Value Investing’.
Listed below are four undervalued Large-cap stocks that investors should keep an eye on:
Hero Motocorp Limited
Domiciled in India, Hero MotoCorp Limited is engaged in the business of manufacturing as well as distributing scooters, motorcycles, and other related spare parts.
The company has a market capitalization of Rs 59,500 crores and its stock is currently trading at a price of Rs 2,975, gaining around 2.60 percent as compared to the previous closing price of Rs 2,898.75.
The company’s Price to Equity (P/E) ratio stands at 21.20 which is lower than the industry P/E ratio currently standing at 34.70. Moreover, the Price to Book Value (P/B) ratio of the company is 3.58 which is lesser than the industry P/B ratio of 8.56.
Hindalco Industries Limited
Hindalco Industries Limited is involved in the process of extracting raw materials and also produces & sells metals falling into segments like aluminium, copper, etc. The company is expanding on a global level with sales and operations worldwide.
The company has a market capitalization of Rs 95,700 crores and its stock is currently trading at a price of Rs 426, trading flat as compared to the previous closing price of Rs 425.65.
The company’s Price to Equity (P/E) ratio stands at 9.50 which is lower than the industry P/E ratio currently standing at 20.60. Moreover, the Price to Book Value (P/B) ratio of the company is 1.02 which is lesser than the industry P/B ratio of 1.18.
NTPC Limited
NTPC Limited is the largest producer of power in India which supplies the needs of a significant amount of people. Primarily, it generates revenue via the sale of electricity to various state-owned power distribution companies throughout India.
The company has a market capitalization of Rs 186,000 crores and its stock is currently trading at a price of Rs 192, gaining around 0.30 percent as compared to the previous closing price of Rs 191.25.
The company’s Price to Equity (P/E) ratio stands at 11.00 which is lower than the industry P/E ratio currently standing at 28.70. Moreover, the Price to Book Value (P/B) ratio of the company is 1.24 which is lesser than the industry P/B ratio of 1.93.
Wipro Limited
Wipro Limited is a global Information Technology (IT) services provider with traditional offerings such as cloud infrastructure services, consulting, etc. It serves customers spread across a wide range of industries such as banking, healthcare, and many more.
The company has a market capitalization of Rs 2,16,200 crores and its stock is currently trading at a price of Rs 394, gaining around 0.60 percent as compared to the previous closing price of Rs 391.60.
The company’s Price to Equity (P/E) ratio stands at 19.10 which is lower than the industry P/E ratio currently standing at 25.70. Moreover, the Price to Book Value (P/B) ratio of the company is 2.79 which is lesser than the industry P/B ratio of 7.00.
Written by Amit Madnani
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