Bargain hunting: 24 stocks you can pick up post mkt carnage

 
Riken Mehta
moneycontrol.com

It was carnage across the board on Thursday after the rupee touched an all time low of 59.93. Fears of a large scale pullback of FIIs from India saw the Sensex crashing 526 points, lead by shares in the metal, banking and realty sectors.

Yet, periods of turmoil like these also provide investors with an opportunity to buy stocks at reasonable valuations. One of the yardsticks used by investors is the market price compared to the book value.

Book value is the net asset value of the company. Technically speaking, it is the sum of the company’s equity capital and reserves divided by number of shares in issue. Simply put, this is the price that a shareholder would get per share if the company were to be liquidated. The book value is a reasonable indicator of whether a stock is overpriced or undervalued.

As per latest data, 25 companies out of BSE 100 are trading at discount to book value post Thursday’s sell-off. Check them out

Source: Capitaline. Close price as on 20th June, 2013

Company Close Price Cons Book Value Latest P/BV
HDIL  36.15 257.8 0.14
Reliance Infra  339.8 957.5 0.35
Unitech  21.05 43.54 0.48
Sterlite Inds 81.4 161.78 0.50
IDBI Bank  74.25 145.63 0.51
SAIL  53.55 99.45 0.54
Hindalco Inds 97.7 178.09 0.55
HPCL  251.65 394.48 0.64
Bank of India  260.25 390.81 0.67
Reliance Capital  330.7 487.34 0.68
Canara Bank  358.5 522.42 0.69
Reliance Comm  124.65 181.26 0.69
Sesa Goa  139.7 201.07 0.69
Bank of Baroda  576.6 785 0.73
Punjab Natl Bank 687.35 934.58 0.74
NHPC Ltd 18.35 24.69 0.74
Union Bank  201.1 265.14 0.76
Tata Steel  272.4 351.85 0.77
Power Fin Corp 154.4 183.01 0.84
JSW Steel  687.2 762.09 0.90
IOC  240.9 259.63 0.93
Reliance Power  64.55 66.24 0.97
Jindal Steel  222.15 227.35 0.98
Adani Enterp 182.65 186.88 0.98

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