Stocks under Rs 100: Trading at hefty discount to their intrinsic value with decent ROCE

So, here is the list of stocks which are trading at discount to their Intrinsic value and moreover, these stocks are below Rs 100 and have a decent 3 years ROCE.

Most of us are familiar with the names of world-famous investors like Warren Buffet and Charlie Munger and if value investing style excites you, then surely you must have come across the word ‘Intrinsic Value.’

When it comes to value investing, Intrinsic value is perhaps one of the most important concepts as it determines whether a stock delivers value or not. But it’s also one of the most confusing concepts.  

Long before Indians were introduced to the world of investing, John Burr Williams gave investors the concept of evaluating the intrinsic value or fair value of a stock.

Intrinsic value of a stock is its true value. This is calculated on the basis of the monetary benefits you expect to receive from it in the future. In a nutshell, it is the maximum value at which you can buy the asset, without making a loss in the future when you sell it.

Here is an easy explanation by the Oracle of Omaha i.e., Warren Buffett of intrinsic value. He says, "Let's say you decide you want to buy a farm and you make calculations that you can make USD 70/acre as the owner. How much will you pay (per acre for that farm)? Do you assume agriculture will get better so you can increase yields? Do you assume prices will go up? You might decide you wanted a 7 per cent return, so you'd pay USD 1,000/acre. If it's for sale at USD 800, you buy, but if it's at USD 1,200, you don't." (Berkshire Annual Meeting 2007).

So, here is the list of stocks which are trading at discount to their Intrinsic value and moreover, these stocks are below Rs 100 and have a decent 3 years ROCE.

Let us know in the comment section, if this post has been helpful.

3 comments on article "Stocks under Rs 100: Trading at hefty discount to their intrinsic value with decent ROCE"

S.Rama Krishna

Excellent information.I have 6 of above stocks.I have a strong belief that they will give good returns to the share holders because they are low valued scrips.

11/5/2022 6:00 AM

Ch.adinarayana

Now buying in rvnl short time

11/5/2022 9:04 AM

K Thirumalai Thirumalai

Useful Data

11/5/2022 8:41 PM

Please login or register to post comments.