Hidden Gem: This smallcap stock is trading at 80 per cent to its book value!

Stock’s P/E stands at 9.73 and FII holding in the stock stands at 0.54 per cent with 0.04 per cent addition

Pilani Investment and Industries Corporation Limited is registered as a non-deposit taking NBFC with the Reserve Bank of India. It functions as a core investment company with the main activity being investment in shares and securities of the Birla group companies and providing finance to them.  

The Co holds significant investments in Equity Shares of various diversified companies like Century Textiles and Industries Limited, Grasim Industries Limited, Hindalco Industries Limited, UltraTech Cement Limited, Vodafone Idea Limited, Birla Tyres, Kesoram Industries Limited etc. Along with this the company has many prime properties.  

Currently the stock is quoting around Rs 1,951 with a market capitalization of Rs 2,160 crore. Now, here is the most intriguing part which we will disclose, the stocks book value stands at Rs 9,619 and it trades at price-to-book ratio stands at 0.20 and dividend yield is at 0.77 per cent.  

Stock’s P/E stands at 9.73 and FII holding in the stock stands at 0.54 per cent with 0.04 per cent addition seen in the quarter ended September 30, 2022.  

At the current market price, the stock is trading at nearly 80 per cent discount to its book value of Rs 9,619. The stock has advanced 4.93 per cent on YTD basis and in the last three years the stock has surged nearly 14 per cent.  

What do you think, is this an attractive stock to invest at the current market price?