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Value traps or undervalued? 18 companies in BSE500 index trade at low price-to-book value

The Indian market has rallied about 50% from the March lows but there are as many as 18 stocks in BSE500 index that are trading below Price-to-Book (P/B) of less than 1, including Dish TV, Canara Bank, Union Bank of India, Bank of India, BHEL, Mahindra Lifespace, Indiabulls Real Estate and UCO Bank. But beware! The maximum number of stocks that look cheap on valuations could turn out to be a value trap. Investors should carefully analyze companies that are trading at cheap valuations, and avoid those with bleak future, weak fundamentals and having very poor growth visibility, suggest experts.

Read More at Moneycontrol News date : 30 Jul 2020, Thursday

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