List of companies with fair profit margins and trading at a concession to book value

List of companies with fair profit margins and trading at a concession to book value

Ashwin Urkude
/ Categories: Trending, Multibaggers

A business with a low PBV ratio and a high ROE can make a good investment for a variety of reasons.

A company trading below its book value means that the company’s market capitalization (the value of its outstanding shares) is lower than its book value (the value of the company’s assets minus liabilities). If a company is trading below its book value, it means that the market value of its assets is less than the balance sheet value. This could mean that the market is undervaluing the company's assets or that the assets are not as valuable as stated on the balance sheet.  

ROE (Return on equity) is a measure of a company’s profitability that indicates how much profit a company generates for each Rupee of equity. A company with a fair ROE indicates that the management is generating a decent return on the shareholder’s equity while trading below book value means that the market is undervaluing the company’s assets.  

As a result, a company with a fair ROE that is trading below book value might offer a good investment opportunity, provided that the underlying causes of the undervaluation are found and evaluated. There are some potential causes of a corporation trading below its book value like Temporary market conditions, Poor financial performance, Asset impairment, and Debt burden.  

Here is the list of companies with Fair profit margin and trading at a concession to book value: 

 

NAME 

CMP (RS) 

MARKET CAP (CR) 

ROE (%) 

PBV 

JINDAL PHOTO LTD 

270 

277 

64.3 

0.15 

ZUARI AGRO CHEMICALS LTD 

119 

500 

47.5 

1.21 

NAHAR SPINNING MILLS LTD 

238 

858 

40 

0.54 

VIJAY SOLVEX 

780 

250 

22.6 

0.90 

EMAMI PAPER 

105 

635 

20 

0.90 

LOYAL TEXTILE 

571 

275 

31.1 

0.72 

RANA SUGARS 

20 

307 

23 

0.67 

 

Previous Article Shares of this civil construction company surged more than 9 per cent after securing an order worth Rs 780.12 crore!
Next Article This smallcap company renewed its contract worth USD 68 million with a US-based firm!
Rate this article:
3.9

DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR