These 5 Indian stocks trade below book value. Here's what the market sees

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A stock trading below book value may look cheap, but the discount usually has a reason.

Book value, calculated as total assets minus total liabilities, represents the net worth attributable to shareholders. Comparing it with a company's share price gives investors a sense of whether the market is valuing the business at a premium or discount to its net assets.

The price-to-book (PB) ratio is particularly relevant for companies with substantial tangible assets. But a low PB ratio is only a starting point, not a buy signal. The underlying business, earnings trajectory and financial health matter just as much.

Here are five Indian stocks currently trading below their book value.

UFlex is India's largest multinational flexible packaging and solutions company, operating across the entire packaging value chain.

The company offers end-to-end packaging solutions to industries including fast moving consumer goods (FMCG), food and beverages, pharmaceuticals, personal care, agriculture and industrial products. Its customers include PepsiCo, Nestlé, Mars, Mondelez International, L'Oréal, Britannia, GlaxoSmithKline, Dabur, ITC Ltd and Amul.

UFlex has an aggregate global packaging film capacity of 636,160 million tonnes per annum (MTPA) and PET resin capacity of 384,000 MTPA, with operations across more than 150 countries.

At a share price of ₹450, UFlex trades at 0.4 times its book value of ₹1,125 per share. Stagnant growth and uneven profitability have contributed to the discount.

The company grew revenue 2.1% year-on-year to ₹155.1 billion (bn). Ebitda rose 8.1% to ₹19.8 bn, with margins expanding 70 basis points to 12.8%. Net profit jumped 122.8% to ₹3.2 bn, albeit from a low base.

Better realizations, pricing power, operating leverage and easing US tariffs boosted profits.

Management expects FY27 to be better than FY26, with a significant portion of recent capex expected to start generating revenue and Ebitda in H1FY27.

A greenfield aseptic packaging plant in Egypt, with annual capacity of 12 bn packs, is scheduled to go live in H1FY27. This will double UFlex's global aseptic capacity to 24 bn packs annually.

The company is also commissioning an 80 million (m) bag woven polypropylene plant in Mexico to tap the growing pet food market, while a new 54,000 MTPA BOPP film line in Karnataka is aimed at domestic growth.

Through these expansions, UFlex is moving towards its long-term goal of 1 million MTPA in global packaging films capacity.

The company is also commissioning a recycling plant in Noida in early FY27, with capacity to process 36,000 MTPA of recycled PET and 3,600 MTPA of mixed multi-layer plastic.

The capex is aimed at strengthening UFlex's high-margin packaging business and could support future profit growth.

Raymond Lifestyle, the flagship company of the Raymond Group, operates branded textile and apparel businesses across formal, casual and ethnic wear.

As of 31 March 2026, its total store count stood at 1,653. Its flagship brand, The Raymond Shop (TRS), had 1,109 stores across more than 600 cities and towns.

At a share price of ₹744, Raymond trades at around 0.5 times its book value of ₹1,582 per share. The discount reflects the company's weak financial condition in FY25, followed by a modest recovery in FY26.

Total income rose 11% year-on-year to ₹70.3 bn in FY26. Growth was led by branded textiles (+14%) and branded apparel (+14%), while high-value cotton shirting grew 2% and garmenting was flat.

Ebitda rose 23% to ₹8 bn, lifting margins 120 bps to 11.4%. Net profit grew 21% to ₹1,750 million. Raymond also became net-debt-free, with a net cash surplus of ₹1.8 bn.

Over the next three years, the company is targeting double-digit revenue growth, high-double-digit Ebitda expansion and high-teens margins.

Its strategy is focused less on aggressive expansion and more on sustainable profitability through a lean, ...