In recent months, we have seen a sudden upsurge in the share price & valuations of significant unlisted companies. While the hype exists, investors must stay cautious as many companies are overpriced.
Let’s have a look at some key players:
1. Tata Capital
- The Tata capital share price rose by 120% in the last 1 year, from Rs 500 per share in 2023 to Rs 1,100 in 2024.
- Currently, Tata Captial Trading is around Rs 1075 per share.
- Generally, stocks trade around a P/B Ratio of 5x, Tata Capital has a P/B Ratio of 20.9 indicating an overvaluation
2. Hexaware Technologies
- The global digital and technology services company has filed its DRHP & planning to launch an IPO.
- The stock price currently trades around Rs 1100 per share with a P/E Ratio of 125.
- This is in stark contrast to an average IT Sector P/E ratio of 25-35, making the current share price overvalued.
3. Waaree Energies
- Valuation wise Waaree has given a decent growth.
- But the current share price moving between Rs 2800-3000 per share is almost double the expected IPO list price of Rs 1500-1800 per share
- With a 6-month lock-up post-IPO, purchasing Waaree doesn’t seem to be a beneficial trade.
4.Oyo
- After raising money at a 76% valuation cut, oyo has expanded its operations in the Middle East, Europe & US.
- Oyo raised money at Rs 30 per share but currently trading around Rs 60 with a valuation of around Rs 39000 crore.
- While the company aims for a profit of Rs 700 crore, the current valuation seems high.
5. CIAL
- CIAL gave a 1:4 right issue in Jan 2023 priced at Rs 50 per share.
- Since then the stock price has grown from Rs 200 per share to now Rs 465 per share with a market cap of Rs 22,257 crore.
- CIAL share looks fully priced at this moment.
6. Hero Fincorp
- The financial leg of Hero is currently trading at around Rs 2200 per share at a P/B ratio of Rs 4.8.SEBI rejected its IPO.
- The normal P/B ratio in the NBFC Sector goes around 1-1.5.
- Hence Hero Fincorp looks overpriced.
7. HDB Financial
- The current price of HDB is in the range of Rs 1490 – Rs 1545, which is an all-time high for the company.
- With the current market cap of Rs 1,21,214 crore. The IPO estimation has been a lower range of Rs 800.
- Thus HDB seems overvalued at the moment.
8. Vikram Solar
- On June 24, Vikram Solar issued shares through a private placement for Rs 122 per share.
- Then the market cap was Rs 3,700 crore. Currently, the share is trading at Rs 446 with a market cap of 11,005 crore.
- With no major development & expected profit of Rs 250 crore, the P/E Ratio stands at 138.1 which is abnormally high for unlisted shares.
- Thus the share price is overvalued.
9. Polymatech
- For semiconductor industries globally, the general P/B ratio ranges between 1.5-4x. For Polymatech the P/B ratio is hovering around 17.5x.
- The share grew from Rs 425 on July 23 to now trading at Rs 777 which is almost 2X growth.
- Thus the share is already trading around its maximum price.
10. Mobikwik
- A typical P/E ratio of 20-30x is considered a fair value range.
- Mobikwik’s P/E ratio is 311.6. This is unexpected with a 2023 loss of Rs 83.4 crores and a 2024 profit of Rs 14.8 crore.
- The current share price of Rs 761 seems high.
In A Nutshell
Investors must take caution while investing, especially these days when most unlisted stocks are overpriced. Make sure to gather & analyze all accessible information before investing.
Connect with our experts to know more.
