Price to Book Value is a parameter which Benjamin Graham, the guru of Warren Buffett, loved to use while identifying undervalued stocks. PBV of less than 1 usually suggest that the stock is undervalued. In this depressed market lot of stocks are trading at significant discount to their book values.
InvestorZclub has tried to compile a list of reasonable sized stocks in India having revenue of Rs 500 crore or more and PBV of 0.6 or less as on SEP 29 2011 based on FY-11 financial numbers.
The investors with 6 months horizon are actually getting all these stocks even cheaper based on FY-2012 book value.
|Company||Revenue (FY-11) in crores||PBV|
|JK Lakshmi Cement||1318||0.47|
|Punjab & Sind Bank||5370||0.52|
|DCM Shriram Cons.||4066||0.57|