Often, the most promising opportunities are hidden in plain sight. A simple yet effective method to identify these early is by examining a company’s book value. A stock trading below its book value, particularly when the company has low debt and consistent earnings, may indicate that the market is undervaluing a potential leader.
With this in mind, here are four high-book-value stocks that could be worth watching.
Delta Corp
Delta Corp is a prominent Indian company in the casino gaming and hospitality sector. It holds a unique position as the only listed company in India’s casino gaming industry, which includes live, electronic, and online gaming. The company has also expanded into the rapidly growing online gaming market through its acquisition of Gaussian Networks, the operator of the popular online poker site ‘Adda52.com’.
As of the time of writing, Delta Corp’s book value per share is ₹99.5, while its stock is trading at ₹83.5. This results in a price-to-book (PB) ratio of 0.84.
Over the past five years, the company has demonstrated solid financial growth. Its sales have grown at a compound annual growth rate (CAGR) of 4%, while its net profit has increased at a faster pace of 11.4% CAGR. The company’s five-year average return on equity (RoE) stands at 7.6%, and its return on capital employed (RoCE) is 10.4%.
Delta Corp has ambitious plans for the future. After FY26, it intends to build a hotel, a multiplex, a retail complex, and a convention centre in two phases on a single plot. The company’s vision is to provide world-class gaming and hospitality experiences in India that rival top international destinations.
Andhra Sugars
Andhra Sugars is a diversified manufacturer with operations spanning multiple sectors. The company produces a range of products, including sugar, industrial alcohol, chlor-alkali products, and aspirin, among others. It also has a power generation division that caters to its own energy needs. Its business is divided into four main segments: sugar and allied products, chlor-alkali products, industrial chemicals and liquid propellants, and power generation.
The company’s latest book value per share is ₹117.5, and the stock is currently trading at ₹76.8, giving it a price-to-book (P/B) ratio of 0.65.
Financially, Andhra Sugars has seen its revenue grow at a five-year CAGR of 6.6%. However, its net profit has experienced a degrowth of 20.2% over the same period. The company’s average RoCE is 10.6%, and its average RoE is 13.7% over the last five years.
Looking to the future, the company is investing in new projects. It plans to set up a 6 TPD (tonnes per day) sodium sulphate recovery plant with an investment of ₹120 million. Additionally, it intends to install a 12 MW solar power project costing around ₹420 million to meet the energy requirements of its existing caustic soda plant.
GHCL Textiles
GHCL Textiles is a leading manufacturer and supplier of 100% cotton and synthetic yarns. The company’s Yarn Division is one of India’s top yarn producers, serving major apparel and textile brands like Raymond, Tessitura Monti, Soktas, H&M, and C&A.
Its robust manufacturing base includes 2 lakh ring spindles, 3,320 rotors, 480 vortex positions, and 5,760 TFO spindles. The company’s latest book value per share is ₹150.4, while the stock is currently trading at ₹2.3, resulting in a price-to-book ratio of 0.56.
In July 2025, GHCL Textiles began commercial production at a new, fully automated section at its Paravai unit in Madurai. This expansion added 25,536 ring spindles, increasing the total installed capacity to 2,24,976 spindles.
For the financial year 2024 (FY24), the company reported a revenue of ₹10,539 million and a net profit of ₹251 million.
Looking ahead, GHCL Textiles has committed a capital expenditure of ₹10 billion to further expand its spinning and knitting operations. For more detailed information, you can refer to the company’s fact sheet and quarterly results.
DEN Networks
DEN Networks is an Indian mass media and entertainment company offering cable TV, over-the-top (OTT) entertainment, and broadband services. The company primarily distributes television channels via a digital cable network and also provides high-speed internet. Its cable TV distribution network covers over 500 cities and towns across 13 states.
The company’s latest book value per share is ₹75.9, while its stock is currently trading at ₹36.1, giving it a price-to-book (P/B) ratio of 0.5.
Between fiscal year 2020 (FY20) and FY24, DEN Networks‘ revenue declined at a CAGR of 2.2%. However, its net profit grew significantly at 29.9% over the same period. The company’s average return on equity (RoE) was 5.7%, and its return on capital employed (RoCE) was 6% during this time. For more detailed information, you can view the company’s fact sheet and quarterly results.
Conclusion
Stocks with a high book value often attract value investors because they seem to be trading at a discount to their intrinsic worth. On the surface, they can appear to be hidden gems, especially when they also have low debt and consistent earnings.
However, it’s crucial to remember that a stock trading below its book value isn’t automatically a bargain. The market may have valid reasons for a lower valuation, such as decelerating growth, management issues, or industry-specific challenges. Relying solely on this one metric can lead to value traps.
For long-term investors, the best approach is to use a high book value as a starting point, not the final word. A thorough due diligence process should include evaluating the company’s fundamentals, corporate governance, and overall valuation before making any investment decisions.
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.
