Last Updated on Jul 5, 2023 by Anjali Chourasiya
Evaluating a company’s market valuation in relation to its book value is important to identify undervalued stocks. This is where the P/B ratio, also known as the Price-to-Book ratio or PB ratio, comes into play. It is calculated by dividing a company’s market share by its book value. A PB ratio of below 1 typically suggests an undervalued stock. In this article, let’s look at stocks with low share price-to-book ratio in the Nifty 500 Universe.
Table of Contents
Stocks with low share price to book ratio
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | PB Ratio |
| Suzlon Energy Ltd | Renewable Energy Equipment & Services | 15,422.32 | 14.00 | 5.41 | -11.52 |
| Tata Teleservices (Maharashtra) Ltd | Telecom Services | 14,231.87 | 72.80 | -12.43 | -0.82 |
| Vodafone Idea Ltd | Telecom Services | 37,239.96 | 7.65 | -1.27 | -0.60 |
| Indiabulls Housing Finance Ltd | Home Financing | 5,172.32 | 115.30 | 4.58 | 0.31 |
| Uflex Ltd | Packaging | 2,954.89 | 409.20 | 6.15 | 0.44 |
| Bank of India Ltd | Public Banks | 29,114.80 | 70.95 | 7.59 | 0.48 |
| Punjab National Bank | Public Banks | 55,385.41 | 50.30 | 16.54 | 0.54 |
| Power Finance Corporation Ltd | Specialised Finance | 52,762.03 | 199.85 | 3.32 | 0.55 |
| Gujarat State Fertilizers and Chemicals Ltd | Fertilisers & Agro Chemicals | 6,513.12 | 163.45 | 5.14 | 0.55 |
| Tata Investment Corporation Ltd | Asset Management | 11,713.06 | 2,315.05 | 46.51 | 0.60 |
Note: The stocks are filtered using Tickertape Stock Screener on 27th June 2023. Below-mentioned filters are used to get the list of stocks with low share price to book ratio.
- Sector > Nifty 500
- PB Ratio – Set to Low (Below 1) – Sort from highest to lowest
Details of top 3 stocks with low share price to book ratio
- Suzlon Energy Ltd
Founded in 1995, Suzlon Energy is a small-cap company which is into renewable energy equipment and services. They offer renewable energy solutions such as solar irradiance assessment, land acquisition and approvals, infrastructure and power evacuation, supply chain, installation and commission etc. Suzlon Energy also produces wind turbines.
- The stock shows good signs of profitability, 7.6 out of 10 in the Profitability Score on Tickertape.
- Over the last 5 yrs, the revenue of the company has grown at a yearly rate of -12.18%, vs the industry average of -12.23%.
Click here to learn more about its financials.
- Tata Teleservices (Maharashtra) Ltd
Founded in 1966, Tata Teleservices (Maharashtra) Ltd is a leading player in the connectivity and communication solutions market serving enterprise customers.
- The stock shows average signs of profitability, 5.5 out of 10 in the Profitability Score on Tickertape.
- Over the last 5 yrs, the revenue has grown at a yearly rate of -16.92%, vs the industry avg of 1.37%.
Click here to learn more about its financials.
- Vodafone Idea Ltd
Operating in the telecom services sector, Vodafone Idea Ltd was formerly Idea Cellular Limited. With a market capitalisation of Rs. 37,239.96 cr., Vodafone Idea Ltd is a mid-cap company.
- The stocks show average signs of profitability, 6 out of 10 in the Profitability Score on Tickertape.
- Over the last 5 yrs, the revenue has grown at a yearly rate of 1.36%, vs the industry avg of 1.37%.
Click here to learn more about its financials.
To conclude
While a low PB ratio indicates undervalued stocks, it also indicates that there are foundational problems with the company, because of which it is not showing earnings. Hence, it is worthwhile to consider other metrics along with an analysis of the company’s past work to gauge whether the stock is undervalued or not. You can also consult a financial analyst before investing. And for deeper analysis, #TickertapeHaiNa!
As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
