Another Elcid Investments in the Making? Track these 10 Stocks Closely

With an astonishing leap of 6,692,535% in a single trading session, an initial investment of just Rs 10,000 in Elcid Investments skyrocketed to a staggering Rs 67 crore in a single trading session in October 2024.

The insane one-day rally also made Elcid Investments the highest-priced stock in India, trading at Rs 2.8 lakhs per share!

We even covered a detailed editorial about it and explained why such anomaly happened.

Since then, investors have become gung-ho about stocks with high book values.

So, it's time to revisit the story...

In the days following, we received multiple requests from users to highlight other stocks that could potentially see a sharp upmove like Elcid Investments.

In today's article, we'll look at 10 such stocks.

Please note that these are stocks with very low marketcap. We're only listing out these names so retail investors could track then and take their own decision.

These are not recommendations.

In many cases, retail investors won't be able to buy these stocks as they are locked in the upper circuit because the existing shareholders are not willing to part with their holding.

# Gold Rock Investments

First on the list is Gold Rock Investments.

Gold Rock Investments is engaged in the business of money lending & investments.

The company has a marketcap of Rs 90 lakhs and its shares trade at Rs 11.57 on the Bombay Stock Exchange (BSE).

The company's latest book value stands at Rs 2,099.8. At the current price of Rs 11.6, this translates into a price to book value multiple of 0.01x!

Gold Rock has investments of Rs 101 crore which is almost 100x its marketcap. This explains the stark difference in its book value per share and actual price.

Think about this as well... the company has a marketcap of Rs 90 lakhs but it generated a net profit of Rs 5 crore in the June 2024 quarter.

In the September 2024 quarter, the net profit stood at Rs 1.8 crore.

Here's a table showing the company's historical financials -

Financial Snapshot

Rs m, standalone	FY19	FY20	FY21	FY22	FY23
Net Sales	17	76	55	33	38
Growth (%)	26%	353%	-29%	-40%	16%
Operating Profit	63	65	40	24	58
OPM (%)	372%	85%	74%	74%	150%
Net Profit	47	51	31	14	49
Net Margin (%)	278%	67%	56%	43%	128%
ROE (%)	9.6	8.3	3.9	1.6	4.9
ROCE (%)	12.5	10.4	4.8	2.4	5.5
Dividend (Rs)	0.0	0.0	0.0	0.0	0.0
Debt to Equity (x)	0.0	0.0	0.1	0.1	0.0

Data Source: Equitymaster

For more, check out Gold Rock's detailed financial factsheet.

# Nalwa Sons Investments

Next on this list is Nalwa Sons.

The company was originally known as Jindal Strips, when it was initially formed and promoted by Shri O.P. Jindal and associates for manufacturing HR steel strips.

As a part of restructuring, Jindal Strips demerged its stainless-steel division to Jindal Stainless Steel & Jindal Strips was registered as an NBFC company.

Nalwa Sons currently holds significant investments in shares of O.P. Jindal group of companies. This makes its business largely depend on the business prospects of O.P. Jindal group of companies and the steel industry.

The company's latest book value stands at Rs 33,544.

At the current price of Rs 8,243, this translates into a price to book value multiple of 0.02x.

The stock has shot up by 18% today and currently trades at Rs 9,700 per share... such has been the demand for stocks with high book values!

Equitymaster initially wrote about Nalwa back in 2022 when its stock price was at a lowly Rs 1,500 per share... skip forward to today, and it trades at Rs 9,000 per share!

For more details on Nalwa Sons' financials, please click here.

# SIL Investments

Next on the list is SIL Investments.

The company is a systematically important non-deposit accepting company which is engaged in the business of investment and lending activities.

The company's latest book value stands at Rs 2,811.

At the current price of Rs 726, this translates into a price to book value multiple of 0.25x.

From a historical perspective, the stock has commanded a price to book value multiple of 0.2x over the past 5 years.

SIL Investments recently posted its earnings for the quarter ended September 2024 which showed a stark jump in its topline as well as bottomline.

The company's profit shot up to Rs 17 crores compared to Rs 13 crores reported in the same quarter a year ago, while its revenue came in at Rs 25 crores compared to Rs 21 crores last year.

Financial Snapshot

Rs m, standalone	FY19	FY20	FY21	FY22	FY23
Net Sales	388	284	490	438	510
Growth (%)	51%	-27%	72%	-11%	16%
Operating Profit	406	274	433	430	435
OPM (%)	105%	96%	88%	98%	85%
Net Profit	352	203	330	281	294
Net Margin (%)	91%	71%	67%	64%	58%
ROE (%)	4.0	2.1	1.8	1.4	1.5
ROCE (%)	4.6	2.7	2.3	2.0	2.1
Dividend (Rs)	2.5	2.5	2.5	2.5	2.5
Debt to Equity (x)	0.0	0.0	0.0	0.0	0.0

Source: Equitymaster

FII holding in the company has increased for the past three quarters. Promoter holding stands at 63.8% as of September 2024.

For a detailed analysis, check out SIL's financial factsheet.

# Inditrade Capital

Next is Inditrade Capital.

Inditrade Capital is a financial services company offering microfinance, agri-commodity finance and MSME financing, among other services.

The company's latest book value stands at Rs 50.

At the current price of Rs 13.3, this translates into a price to book value multiple of 0.27x.

The stock price has commanded a median price to book value multiple of 0.6x over the past 5 years.

Coming to its financial position, the company has posted a loss in the most recent September 2024 quarter.

Over the years, its shaky performance has kept its stock price under check.

Financial Snapshot

Rs m, standalone	FY19	FY20	FY21	FY22	FY23
Net Sales	1,324	1,784	1,990	1,752	1,672
Growth (%)	42%	35%	12%	-12%	-5%
Operating Profit	581	450	449	220	407
OPM (%)	44%	25%	23%	13%	24%
Net Profit	93	59	51	-139	20
Net Margin (%)	7%	3%	3%	-8%	1%
ROE (%)	11.8	6.7	2.8	-16.1	2.5
ROCE (%)	16.8	11.5	8.8	3.5	10.9
Dividend (Rs)	0.0	0.0	0.0	0.0	0.0
Debt to Equity (x)	1.7	2.0	2.8	2.2	1.3

Data Source: Equitymaster

As of September 2024, promoter holding in the company stands at 31.1% with over 96% of this being pledged.

The stock price has suffered in the past year and the reasons are not very tough to guess... promoter pledging, shaky financials, and so on.

For more about the company, check out its detailed financials here.

# Kalyani Investment Company

Next is Kalyani Investment.

Kalyani Investment was formed by demerging the investment business of Kalyani Steel and by amalgamating the investment undertaking of three wholly owned subsidiaries of Kalyani Steel.

The company primarily invests in Kalyani Group companies. It also has investments in preference shares and debentures.

Some of its major holdings include Bharat Forge and BF Utilities.

The company's current book value stands at Rs 24,032 per share.

Its current stock price, however, is at Rs 7,258 per share. As you can see, there is a huge gap between the current share price and its book value. Put differently, the stock currently trades at almost a 60% discount to its book value.

From a valuation perspective, the stock trades at a PE multiple of 49x compared to its 5-year average of 28x.

On book value basis, the stock trades at a price to book multiple of 0.28x compared to 5-year median P/BV of 0.2x.

In October 2024, Kalyani Investment informed stock market exchanges that it's identified as eligible investment holding company for special call auction. Since then, shares have remained in an uptrend.

While Kalyani Investment's stock may appear to be trading at relatively high multiples, the significant discount to its book value, along with its strong stake in Kalyani Group companies, could be appealing for long-term investors, particularly those looking for exposure to the automotive, manufacturing, and infrastructure sectors.

For more details on Kalyani Investment's financials, please click here.

# Siddha Ventures

Next on this list is Siddha Ventures.

The company mainly consists of investments and trading in quoted and unquoted equities, broking or sub-broking and other financial service activities.

It only operates in India.

The company's current book value stands at Rs 41. At the current price of Rs 12, this translates into a price to book value multiple of 0.3x.

Historically, the stock has commanded a median P/BV of 0.2x over the years.

The company recently posted a jump in its revenue and profit for the quarter ended September 2024.

While revenue for the said quarter came in at Rs 3.1 crore compared to zero revenue in the same quarter a year ago, net profit shot up to Rs 2.9 crore from a loss of Rs 0.4 million in the same period a year ago.

Financial Snapshot

Rs m, consolidated	FY20	FY21	FY22	FY23	FY24
Net Sales	4	-	-	13	3
Growth (%)	-	-	-	-	-79%
Operating Profit	-6	25	3	213	8
Net Profit	-7	25	3	213	8
ROE (%)	-4.4	14.7	1.6	72.6	2.0
ROCE (%)	-4.0	14.7	1.6	72.7	1.9
Dividend (Rs)	0.0	0.0	0.0	0.0	0.0
Debt to Equity (x)	0.0	0.0	0.0	0.0	0.0

Data Source: Equitymaster

For a detailed analysis, check out Siddha Ventures financial factsheet.

# Jindal Poly Investment

Next on the list is Jindal Poly Investment.

The company is a non-systematically important non deposit taking NBFC which runs its business as a core investment company.

It invests, acquires, subscribes for and hold shares, bonds, units, stocks, securities, debentures in group companies and mutual funds.

The company holds major investments in the power sector.

Jindal Poly Investment's current book value stands at Rs 2,611 per share. At the current price of Rs 783, this translates into a price to book value multiple of 0.3x.

The stock price shot up by 20% on 18 November to Rs 937 per share.

Following a series of losses until FY21, the company has made a superb comeback and it recently posted upbeat earnings for the September 2024 quarter.

Jindal Poly Investment recorded a net profit of Rs 140 crores during the quarter compared to a profit of Rs 54 crores posted in the same period a year ago.

Financial Snapshot

Rs m, standalone	FY19	FY20	FY21	FY22	FY23
Net Sales	10	10	24,642	31,058	360
Growth (%)	0%	1%	252896%	26%	-99%
Operating Profit	-633	218	13,181	11,455	357
OPM (%)	-6572%	2240%	53%	37%	99%
Net Profit	-939	-160	7,954	2,811	2,956
Net Margin (%)	-9750%	-1642%	32%	9%	820%
ROE (%)	0.0	0.0	127.9	20.7	11.8
ROCE (%)	-11.7	4.2	67.0	25.6	11.8
Dividend (Rs)	0.0	0.0	0.0	0.0	0.0
Debt to Equity (x)	-3.6	-3.6	0.8	0.0	0.0

Data Source: Equitymaster

For more, check out Jindal Poly Investment's detailed financial factsheet.

# Nahar Capital

Next on the list is Nahar Capital.

The company is registered as a systematically important NBFC. Apart from investing activities, the company also undertakes real estate business.

It purchases and sell the residential and commercial land with trading perspective and also deals in real estate, development of land, construction of building for commercial and residential purpose.

For its lending business, the company usually lends against the security of shares, government bonds, gold, property, and other assets.

Nahar Capital's current book value stands at Rs 976 per share.

At the current price of Rs 306, this translates into a price to book value multiple of 0.31x.

Historically, the stock has commanded an average price to book value multiple of 0.6x over the past 5 years.

Over the years, the company has reported growing revenue and profits on account of higher gains on investment and increase in interest & rental income.

Financial Snapshot

Rs m, standalone	FY19	FY20	FY21	FY22	FY23
Net Sales	132	219	300	255	239
Growth (%)	30%	66%	37%	-15%	-7%
Operating Profit	122	409	354	258	433
OPM (%)	93%	187%	118%	101%	181%
Net Profit	37	610	2,265	1,067	118
Net Margin (%)	28%	279%	754%	418%	49%
ROE (%)	1.2	6.7	17.4	6.9	0.8
ROCE (%)	1.3	9.1	23.4	6.1	1.0
Dividend (Rs)	0.5	1.5	3.0	1.5	1.5
Debt to Equity (x)	0.0	0.0	0.0	0.0	0.0

Data Source: Equitymaster

Nahar currently has strategic investments in Nahar Group (34% of the investments).

Going forward, the company's performance would depend on the performance of overall textile sector and Nahar Spinning Mills. The group is one of the largest and oldest textile groups in the country with an established track record of over six decades and vertically integrated operations from spinning to garmenting and retailing.

For more, check out Nahar Capital's financial factsheet.

# Summit Securities

Next is Summit Securities.

It's a non-deposit taking NBFC registered with RBI and is engaged in the business of investments in shares and securities.

So basically, it's a holding company like Tata Investment Corp.

At present, Summit Securities book value per share stands at Rs 10,300.

At the current price of Rs 3,300, this translates into a price to book value multiple of 0.32x.

Historically, the stock has commanded a median price to book value multiple of 0.1x.

In FY23, the company reported a degrowth in topline as well as bottomline owing to lower dividend income, which came in at Rs 463 m compared to Rs 606 m in the previous year.

The performance was also impacted due to lower gain on fair value changes of mutual funds and other investments.

However, it made a good comeback in FY24 and the performance is expected to be upbeat in FY25 as well.

Financial Snapshot

Rs m, standalone	FY19	FY20	FY21	FY22	FY23
Net Sales	819	290	741	504	1,022
Growth (%)	114%	-65%	156%	-32%	103%
Operating Profit	704	260	711	470	984
OPM (%)	86%	90%	96%	93%	96%
Net Profit	720	183	508	371	757
Net Margin (%)	88%	63%	69%	73%	74%
ROE (%)	2.4	0.5	1.1	0.8	1.1
ROCE (%)	2.4	0.7	1.5	1.0	1.4
Dividend (Rs)	0.0	0.0	0.0	0.0	0.0
Debt to Equity (x)	0.0	0.0	0.0	0.0	0.0

Data Source: Equitymaster

To know more, check out Summit Securities financial factsheet.

# BF Investment

Next on the list is BF Investment.

It's a non-deposit taking core investment company, primarily engaged in the business of making investments in Kalyani Group companies.

The company was incorporated in 2009 by demerging the investment business of BF Utilities.

BF Investment's current book value per share stands at Rs 2,118.

At the current price of Rs 725, this translates into a price to book value multiple of 0.34x.

This basically means the company has assets worth 3x its current market price per share.

Historically, BF Investment has commanded a median P/BV of 0.4x.

Coming to its financials, BF Investment's sales and profit have grown at a CAGR of 37% and 18% in the past 3 years.

Financial Snapshot

Rs m, standalone	FY19	FY20	FY21	FY22	FY23
Net Sales	221	164	199	312	424
Growth (%)	22%	-26%	22%	56%	36%
Operating Profit	162	111	156	256	366
OPM (%)	73%	68%	78%	82%	86%
Net Profit	1,443	2,670	1,978	2,593	4,337
Net Margin (%)	653%	1627%	992%	831%	1022%
ROE (%)	-3.9	10.7	5.4	5.9	8.0
ROCE (%)	0.6	14.3	7.2	7.9	10.6
Dividend (Rs)	0.0	0.0	0.0	0.0	0.0
Debt to Equity (x)	0.0	0.0	0.0	0.0	0.0

Data Source: Equitymaster

For more, check out BF Investment financial factsheet.

# Pilani Investment

Last on this list is Pilani Investment.

The company's current book value per share stands at Rs 15,500 per share.

Its current stock price, however, is at Rs 6,000 per share. As you can see, there is a huge gap between the current share price and its current book value.

Put differently, the stock currently trades at over 50% discount to its book value.

If we look at the price to book value, the stock has commanded a median P/BV multiple of 0.2x in the past 5 years. The current P/BV, however, is at 0.4x.

Even though valuations look expensive, the huge gap between the stock's price and book value could possibly narrow down to some extent.

Pilani Investment, incorporated in 1948, is registered as a systematically important non-deposit-taking non-banking financial company (NBFC) with the Reserve Bank of India (RBI).

It functions as a core investment company. Its main activity is investment in shares and securities of Birla group companies and providing finance to them.

As one of the holding companies of the Birla group, it enjoys strong financial flexibility arising from its stake in Grasim, Century, UltraTech, Hindalco, Aditya Birla Capital, ABFRL, and others.

For more details on the company's financials, please click here.

Some Other Stocks to Track

Apart from the above, here are some more stocks to track... these companies are trading at a significant discount compared to their current book value per share.

Company	Latest Price (Rs)	Latest Book Value (Rs)	Price to Book (x)	Marketcap (Rs m)
Sai Capital Ltd.	334.5	1,199.0	0.28	963.1
Gajanan Securities Services Ltd.	127.5	370.0	0.34	395.5
Palash Securities Ltd.	158.4	451.4	0.35	1584.5
Ganges Securities Ltd.	193.8	546.2	0.35	1938.2
Mukesh Babu Financial Services Ltd.	148.2	412.2	0.36	1032.7
Kiran Vyapar Ltd.	264.7	734.7	0.36	7220.8
SMIFS Capital Markets Ltd.	100.1	274.5	0.36	588.5
HB Portfolio Ltd.	104.5	268.4	0.39	1124.3
VLS Finance Ltd.	372.6	950.8	0.39	12672.2
KJMC Financial Services Ltd.	150.8	375.4	0.40	721.5
GFL Ltd.	94.7	230.5	0.41	10399.5
STEL Holdings Ltd.	481.9	1,139.8	0.42	8893.7
Apoorva Leasing	31.7	74.3	0.43	633.2
Prismx Global Ventures Ltd.	1.0	2.3	0.44	443.5
Vardhman Holdings Ltd.	4,928.0	10,983.9	0.45	15727.7
Maha Rashtra Apex Corporation Ltd.	145.0	319.4	0.45	2042.6
Onelife Capital Advisors Ltd.	17.5	38.4	0.45	233.1
Paul Merchants Ltd.	927.9	1,927.5	0.48	2861.5
Dhunseri Investments Ltd.	2,263.5	4,588.4	0.49	13800.7
Banas Finance Ltd.	10.0	20.1	0.50	893.1
Sammaan Capital Ltd.	135.0	268.3	0.50	100499.5

Data Source: Equitymaster

Conclusion

Stock with high book values might suggest the company has substantial assets compared to its market price, potentially signalling an undervalued opportunity.

However, these assets may not always be liquid or accurately valued, and book value alone doesn't account for a company's earning potential, market position, or financial stability.

Investors should also remember that some of these stocks lack the transparency and regulatory scrutiny of larger stocks.

They may have less robust financial reporting, making it challenging to assess their true value.

That is why, thorough research is crucial. Investors should examine not only the book value but also the company's debt, cash flow, industry position, and all the fundamental factors.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

By the way, you can also check out the video version of this editorial on Equitymaster's YouTube channel.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...