Value for Money: Indian Stocks Trading Below Book Value -
Let me tell you that, The Opportunity to invest in the stock market has not gone yet. Because more than one third of stocks on BSE 500 Index are still quoting below book value.
It is always advisable to invest in those stocks, which are trading below the book value. It means that they are trading in the market at discounted rate. And thus it means that, its time to buy.
P/BV means Price to Book Value Ratio. When Price = Book Value, P/BV will be 1. It means that Book Value & the price of the stock are the same. When Price is more than Book Value, P/BV will be more than 1 & it means that the stock is over valued. When Price is less than Book Value, P/BV will be less than 1 and it means that, there is a Sale in the Stock market & its time to buy a stock at discounted price.
Here are some Indian Stocks having P/BV < 1.
- Allahabad Bank - P/BV of 0.54
- Central Bank of India - P/BV of 0.55
- Jindal Stainless - P/BV of 0.31
- Bharti Shipyard - P/BV of 0.33
- MTNL - P/BV of 0.38
- Tata Steel - P/BV of 0.75
- GE Shipping - P/BV of 0.58
- Gujarat Industrial Power - P/BV of 0.58
- Tata Chemicals - P/BV of 0.99
So these are few fundamentally strong stocks trading at discounted rates. Believe Me.... There are many others.........
So What are you waiting for? This is a Time to Invest...... Start Investing Now......!!!!!!
Sunday, May 3, 2009
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