Yesterday, I had posted an article that was primarily from Economic times. This is in relation to that article. In an effort to break down further and for everyone's benefit, I have reviewed each of the stocks listed in that article as being below book value. I have split into 3 parts and here is part 1.
1. TATA Global:
Face Value is Rs.1.
Book Value is Rs.596.4.
Current Price Rs. 95.3
This is formerly called Tata Tea. Its current full name is TATA Global Beverages Ltd. This stock was split in the ratio 10:1 last year. Prior to its stock split, its year high was 1218. So, not sure, if the stock split is factored in the book value quoted above. As per the last financial report, this company has reported net profit and with an increase in sales when compared with previous quarter. So, not sure if there is any real reason for the current price of the stock to be 84% below its book value. After the split, the year high is Rs.138 and year low is Rs.94.2. It is currently trading @ 30.94% below its year high and just 1.1% above its year low. Im not able to conclude on a view except for the fact that this being a TATA group stock., the group I have high respect!
2. Videocon Inds:
Face Value is Rs.10.
Book Value is Rs. 315.7
Current Price is Rs. 204.5
Year High: 295 (Oct 6 2010); Year Low: 185 (Jun 8 2010)
It is currently at 35.37% below its book value; 30.83% below its year high; 9.34% above its year low.
Its volume is quite low. 27% is held by the public and the rest by the promoters / promoter group. Given the current trend, I presume, the price might fall to 185-190 levels.
3. Reliance Communications:
Face Value: Rs.5
Book Value: Rs.210.10
Current Price: Rs.114.75
Year High: 207.8 (Jun 28 2010); Year Low: 114.05 (Feb 4 2011)
This is part of the Nifty Index and ADAG Group. Its current price is 45.38% below Book Value; 44.78% below Year High and has just formed a new year low of 114.05 on Friday. (Feb 4). Given the current price and potential of telecom sector in the long run, one can take some position at current levels or wait for the stock to form a new bottom. In any case, entering the stock at current levels with a long term view would not be a bad idea.
4. GE Shipping:
Face Value: Rs.10
Book Value: Rs. 374.4
Current Price: Rs. 293.8
Year High: 392.9 (Nov 10 2010); Year Low: 258.4 (Mar 2010)
Its current price is 21.53% below Book Value; 25.22% below year high and 12.07% above year low. Given the current trend, this might find support near its year low of 258-260 levels.
5. IVRCL Infra:
Face Value: Rs.2
Book Value: Rs. 100.2
Current Price: Rs. 74.05
Year High: 194.5 (Jul 12 2010); Year Low: 73.65 (Feb 4 2011)
The stock was split in the ratio 2:1 last year. Not sure if the book value reflects the stock split. Its current price is 26.10% below Book Value; 61.93% below year high and formed a new year low of 73.65 on friday (Feb 4). This stock is in very strong downtrend. Its recent high was Rs.135.8 on Jan 4 2011. Since then (in roughly 20 trading sessions/days), it has fallen by almost 46% and with increasing volume as well. So, this stock is now definitely beaten down by the market. This stock is part of the Nifty Midcap50 Index. Considering the potential of this sector, with a long term view, one can take position in this stock and enhance position if it goes further down significantly (by more than 20% further) or enhance position when the trend reverses and price moves upside.
Part 2 & 3 follows shortly...
1. TATA Global:
Face Value is Rs.1.
Book Value is Rs.596.4.
Current Price Rs. 95.3
This is formerly called Tata Tea. Its current full name is TATA Global Beverages Ltd. This stock was split in the ratio 10:1 last year. Prior to its stock split, its year high was 1218. So, not sure, if the stock split is factored in the book value quoted above. As per the last financial report, this company has reported net profit and with an increase in sales when compared with previous quarter. So, not sure if there is any real reason for the current price of the stock to be 84% below its book value. After the split, the year high is Rs.138 and year low is Rs.94.2. It is currently trading @ 30.94% below its year high and just 1.1% above its year low. Im not able to conclude on a view except for the fact that this being a TATA group stock., the group I have high respect!
2. Videocon Inds:
Face Value is Rs.10.
Book Value is Rs. 315.7
Current Price is Rs. 204.5
Year High: 295 (Oct 6 2010); Year Low: 185 (Jun 8 2010)
It is currently at 35.37% below its book value; 30.83% below its year high; 9.34% above its year low.
Its volume is quite low. 27% is held by the public and the rest by the promoters / promoter group. Given the current trend, I presume, the price might fall to 185-190 levels.
3. Reliance Communications:
Face Value: Rs.5
Book Value: Rs.210.10
Current Price: Rs.114.75
Year High: 207.8 (Jun 28 2010); Year Low: 114.05 (Feb 4 2011)
This is part of the Nifty Index and ADAG Group. Its current price is 45.38% below Book Value; 44.78% below Year High and has just formed a new year low of 114.05 on Friday. (Feb 4). Given the current price and potential of telecom sector in the long run, one can take some position at current levels or wait for the stock to form a new bottom. In any case, entering the stock at current levels with a long term view would not be a bad idea.
4. GE Shipping:
Face Value: Rs.10
Book Value: Rs. 374.4
Current Price: Rs. 293.8
Year High: 392.9 (Nov 10 2010); Year Low: 258.4 (Mar 2010)
Its current price is 21.53% below Book Value; 25.22% below year high and 12.07% above year low. Given the current trend, this might find support near its year low of 258-260 levels.
5. IVRCL Infra:
Face Value: Rs.2
Book Value: Rs. 100.2
Current Price: Rs. 74.05
Year High: 194.5 (Jul 12 2010); Year Low: 73.65 (Feb 4 2011)
The stock was split in the ratio 2:1 last year. Not sure if the book value reflects the stock split. Its current price is 26.10% below Book Value; 61.93% below year high and formed a new year low of 73.65 on friday (Feb 4). This stock is in very strong downtrend. Its recent high was Rs.135.8 on Jan 4 2011. Since then (in roughly 20 trading sessions/days), it has fallen by almost 46% and with increasing volume as well. So, this stock is now definitely beaten down by the market. This stock is part of the Nifty Midcap50 Index. Considering the potential of this sector, with a long term view, one can take position in this stock and enhance position if it goes further down significantly (by more than 20% further) or enhance position when the trend reverses and price moves upside.
Part 2 & 3 follows shortly...
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