49% stocks trading below book value
http://www.utvi.com/stock-market/stock-market-news/11537/49--stocks-trading-below-book-value.html
Published on Tue, Oct 7, 2008 at 13:08 IST

MUMBAI: Out of 2,699 companies listed on the stock exchanges in India, 49% of the stocks were trading below their book at the end of September. In January, only 22% were below their book value.

YTD Price Performance

Sensex                         -41.8%

Nifty                             -41.3%

Midcap                        -55.6%

Smallcap                      -61.8%

BSE 500                      --47.8%

BSE 500 Book Value Picture

The BSE 500 index has lost over 47% since January

Around 7% of BSE 500 stocks were quoting below their book value in January

In Sept, 20% companies were trading below their book value

Stocks Below Book Value

                                Book Value                Last Price

Arvind Mills                  63.55                           21.1

MTNL                         189.23                           80.6

Allahabad Bank            97.22                         62.1

Alok Ind                       70.59                             25.1

HPCL                          311.59                           240

Bk of Baroda               302.13                         290

TVS Motors                 34.59                           34.2

CEAT                          145.97                          60.1

Century Enka               225.14                       94.15

Escorts                         80.75                          59.1

 What Does Price/Book Value Indicate

Valuation attractiveness of a company

Price/Book Value is the price paid for the company’s assets

Lower the price-to-book value, more attractive the investment opportunity

However, price-to-book value should not be looked at in isolation

The quality of the assets, profitability, return on equity, should also be considered

I suggest everyone keep updating this thread with those stocks whose prices are close to or less than their book value and have a good dividend yield :

Kindly mention the CMP date , the FV , and the source of your data for others to verify and do their own number crunching .

I am starting with Tata Steel


On 10 Oct 2008

Tata Steel's

CMP : Rs.287.50

Book Value : Rs.311.00 ( according to myiris.com )

Last Dividend Per Share : Rs.16

Face Value = Rs.10

Price to BV  : 0.92
Div Yield as on date : 5.56%

what is your opinion on 1) lloyd electrics and engineering and 2)Bharti Shipyard?

Originally posted by valueman Originally posted by pankaj72 what is your opinion on 1) lloyd electrics and engineering and 2)Bharti Shipyard? Not tracking those and hence no idea on the same .I think Vivek can share his insights on the same .