Even in these days of slightly overheated valuations there are certain scrips which are trading well below their book values. For instance, Hindalco whose book value at Rs 596 is more than the market price of Rs 566.
There are numerous other examples and all of them are top Nifty stocks. These include Indian Hotels, IPCL, M&M, MTNL, NIIT and Zee Telefilms. However investors should exercise caution while investing in such scrips - the fall in prices of the stocks should be seen in a larger context and verified whether it is impacting the sector as a whole or is localised to the company.