Bargain hunting: 24 stocks you can pick up post mkt carnage

 
Riken Mehta
moneycontrol.com

It was carnage across the board on Thursday after the rupee touched an all time low of 59.93. Fears of a large scale pullback of FIIs from India saw the Sensex crashing 526 points, lead by shares in the metal, banking and realty sectors.

Yet, periods of turmoil like these also provide investors with an opportunity to buy stocks at reasonable valuations. One of the yardsticks used by investors is the market price compared to the book value.

Book value is the net asset value of the company. Technically speaking, it is the sum of the company’s equity capital and reserves divided by number of shares in issue. Simply put, this is the price that a shareholder would get per share if the company were to be liquidated. The book value is a reasonable indicator of whether a stock is overpriced or undervalued.

As per latest data, 25 companies out of BSE 100 are trading at discount to book value post Thursday’s sell-off. Check them out

Source: Capitaline. Close price as on 20th June, 2013

Company	Close Price	Cons Book Value	Latest P/BV
HDIL	36.15	257.8	0.14
Reliance Infra	339.8	957.5	0.35
Unitech	21.05	43.54	0.48
Sterlite Inds	81.4	161.78	0.50
IDBI Bank	74.25	145.63	0.51
SAIL	53.55	99.45	0.54
Hindalco Inds	97.7	178.09	0.55
HPCL	251.65	394.48	0.64
Bank of India	260.25	390.81	0.67
Reliance Capital	330.7	487.34	0.68
Canara Bank	358.5	522.42	0.69
Reliance Comm	124.65	181.26	0.69
Sesa Goa	139.7	201.07	0.69
Bank of Baroda	576.6	785	0.73
Punjab Natl Bank	687.35	934.58	0.74
NHPC Ltd	18.35	24.69	0.74
Union Bank	201.1	265.14	0.76
Tata Steel	272.4	351.85	0.77
Power Fin Corp	154.4	183.01	0.84
JSW Steel	687.2	762.09	0.90
IOC	240.9	259.63	0.93
Reliance Power	64.55	66.24	0.97
Jindal Steel	222.15	227.35	0.98
Adani Enterp	182.65	186.88	0.98