Investors frequently seek out undervalued stocks, with the Price-to-Book (P/B) ratio serving as a valuable indicator. This ratio assesses the relationship between a company’s market price per share and its book value per share.
A P/B ratio below 1 implies that the stock is trading for less than its book value, indicating potential undervaluation and presenting a possible investment opportunity.
Here are some stocks priced under Rs.250 with a P/B ratio of less than 1:
RBL Bank Ltd
With a market capitalization of Rs.10,306 crore, the share price of RBL Bank Ltd closed at Rs.164.85 on Friday, down 3.8 percent from its previous closing price. The price-to-book value ratio of the company is currently at 0.70.
According to its latest financial update, RBL Bank Ltd reported net sales of Rs.3,531 crore for Q2 FY25, marking a 17 percent year-over-year growth. Net profit for the quarter reached Rs.3.66 crore, down 25 percent over the same period.
RBL Bank, previously recognized as Ratnakar Bank Limited, is a leading private-sector bank based in Mumbai. Initially focused on providing services to small and medium enterprises (SMEs) in Maharashtra, the bank has since broadened its reach to operate across the country.
Steel Authority of India Ltd
With a market capitalization of Rs.48,079 crore, the share price of Steel Authority of India Ltd (SAIL) closed at Rs.117.89 on Friday, down 4.5 percent from its previous closing price. The price-to-book value ratio of the company is currently at 0.84.
According to its latest financial update, SAIL reported net sales of Rs.23,998 crore for Q1 FY25, down 1.5 percent year-over-year growth. Net profit for the quarter reached Rs.82 crore, down 61 percent over the same period.
SAIL is the largest steel-making company in India and one of the seven Maharatna companies in the country. Established on January 24, 1973, SAIL operates under the Ministry of Steel, Government of India, and is headquartered in New Delhi. The government owns approximately 65 percent of SAIL’s equity, which grants it significant operational autonomy.
Zuari Agro Chemicals Ltd
With a market capitalization of Rs.838 crore, the share price of Zuari Agro Chemicals Ltd closed at Rs.211.05 on Friday, down 1.26 percent from its previous closing price. The price-to-book value ratio of the company is currently at 0.50.
According to its latest financial update, Zuari Agro Chemicals Ltd reported net sales of Rs.1,097 crore for Q1 FY25, down 9 percent year-over-year growth. Net profit for the quarter reached Rs.29 crore, from a net loss of Rs.2 crore over the same period.
Zuari Agro Chemicals Ltd is a well-known Indian fertilizer manufacturer, established in 1967 and affiliated with the Adventz Group. The company focuses on the production, trading, and marketing of various chemical fertilizers, which include complex fertilizers, seeds, pesticides, and specialty fertilizers.
Written by – Siddesh S Raskar
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