Indian Oil and 4 Other Stocks with Price-to-Book Value...

Synopsis: Five Indian stocks are currently trading below their book value, with price-to-book ratios under 1. The list spans chemicals, energy, and infrastructure companies that may interest value-focused investors.

A price-to-book (P/B) ratio below 1 is often seen as a sign that a stock is trading at less than the value of its net assets. Such companies can attract investors looking for potentially undervalued opportunities in the market.

The following five stocks from sectors such as chemicals, oil & gas, and infrastructure are currently available at less than their book value. Along with low valuations, they also offer a mix of profitability and return ratios that investors may track closely.

Gujarat Narmada Valley Fertilizers & Chemicals Ltd

Gujarat Narmada Valley Fertilizers & Chemicals Ltd is a Gujarat-based chemicals and fertilizers company. It manufactures products such as urea, methanol, nitric acid, acetic acid and other industrial chemicals, serving both the agriculture and industrial sectors.

With a market capitalisation of Rs. 5,882 cr, the shares of Gujarat Narmada Valley Fertilizers & Chemicals Ltd closed at Rs. 400.30 per share, increasing from its previous close of Rs. 391.25 per share. The company has a book value of Rs. 589 and is trading at 0.64 times its book value, with a ROCE of 9.57% and an ROE of 7.08%.

Indian Oil Corporation Ltd

Indian Oil Corporation, commonly known as IndianOil, is India’s largest government-owned oil and gas company. It operates across the entire energy value chain, including refining, pipelines, fuel marketing, petrochemicals and natural gas, with a vast network of fuel stations and LPG distribution across the country.

With a market capitalisation of Rs. 1,89,718 cr, the shares of Indian Oil Corporation Ltd closed at Rs. 134.35 per share, decreasing from its previous close of Rs. 135.70 per share. The company has a book value of Rs. 140 and is trading at 0.94 times its book value, with a ROCE of 7.36% and an ROE of 6.51%.

H.G. Infra Engineering Ltd

H.G. Infra Engineering Ltd is an infrastructure construction company based in Jaipur, mainly engaged in roads, highways, bridges and railway projects. The company works under EPC and hybrid annuity models and has gradually expanded into railways, metro systems, solar power and water infrastructure. It is regarded as a fast-growing player in India’s infrastructure sector.

With a market capitalisation of Rs. 3,118 cr, the shares of H.G. Infra Engineering Ltd closed at Rs. 478.55 per share, increasing from its previous close of Rs. 476.30 per share. The company has a book value of Rs. 474 and is trading at 0.98 times its book value, while delivering a ROCE of 16.8% and an ROE of 18.3%.

G R Infraprojects Ltd

G R Infraprojects Ltd is an Indian infrastructure development company that primarily builds highways, roads, bridges and railway projects. The company operates through EPC, BOT and HAM models and has a strong presence in transportation infrastructure across several Indian states. Over the years, it has diversified into power transmission and railway electrification projects as well.

With a market capitalisation of Rs. 8,192 cr, the shares of G R Infraprojects Ltd closed at Rs. 846.70 per share, increasing from its previous close of Rs. 835.55 per share. The company has a book value of Rs. 923 and is trading at 0.88 times its book value, with a ROCE of 14.0% and an ROE of 12.2%.

Electrosteel Castings Ltd

Electrosteel Castings Ltd is one of the largest manufacturers of ductile iron pipes and fittings in the Indian sub‑continent. It pioneered ductile iron spun pipe production in India and today supplies a wide range of ductile and cast iron products such as water and sewerage pipes, fittings, and related infrastructure solutions, to domestic and international markets spanning Europe, the USA, the Middle East, Southeast Asia, Africa, and Latin America.

With a market capitalisation of Rs. 4,957 cr, the shares of Electrosteel Castings Ltd closed at Rs. 80.20 per share, decreasing from its previous close of Rs. 81.12 per share. The company has a book value of Rs. 95.3 and is trading at 0.80 times its book value, with a ROCE of 13.4% and an ROE of 13.2%.

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