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CSK 185 (3.9%)Bharat Bank 11300 (0%)Bira 305 (0%)Capgemini Technology 11250 (-5.5%)Care Health Insurance 149 (-5.7%)Carrier Airconditioning 495 (-3.9%)CIAL 475 (-0.6%)Elcid Investments 350000 (0%)Fincare Small Finance Bank 260 (0%)Fino Paytech Limited 108 (0%)HDFC Securities 10500 (-0.9%)Hero Fincorp 1375 (0%)ICEX 4.5 (-5.3%)Lava 42 (10.5%)Martin and Harris Lab 950 (0%)Merino Industries 3250 (0%)MSEI 4.25 (-14.1%)Mohan Meakin 2195 (-2.4%)Motilal Oswal 14.75 (-7.8%)NCL Buildtek 235 (0%)Otis Elevator 3750 (0%)OYO 49 (22.5%)Pharmeasy 7.25 (0%)Signify Innovations 1275 (0%)Sterlite Power 530 (0%)Studds 635 (-2.3%)Orbis Financial 525 (0%)NSE India 2075 (-3.5%)Schneider Electric 1450 (0%)Kurlon Ent 450 (0%)Madbow 35 (0%)GKN Driveline 1750 (0%)BOAT 1425 (-4.7%)Urban Tots 65 (-4.4%)ACS Technologies 42 (0%)Market Simplified 32 (0%)Nayara Energy 1400 (0%)PolicyX 62 (0%)Ring Plus 695 (0%)Lakeshore Hospital 135 (0%)ESDS Software 405 (11%)Electrosteel Steel Ltd 39 (0%)ICL Fincorp 25 (0%)Indian Potash 3250 (-4.4%)Indofil Industries 1325 (0%)Maharashtra Knowledge Corporation MKCL 450 (0%)Maxvalue Credits And Investments 4.95 (0%)Philips Domestic Appliances 575 (0%)Philips India 950 (0%)Ramaraju Surgical Cotton 285 (0%)Resins and Plastic 575 (0%)Shriram Life Insurance 400 (0%)Silverline Technologies Ltd 12 (0%)Taparia Tools Ltd 6050 (0%)VIkram Solar IPO 385 (-2.5%)Empire Spices and Foods ltd 575 (-1.7%)AB Inbev Sabmiller 600 (0%)Assam Carbon Products 440 (0%)India Carbon ltd 895 (0%)Kannur International Airport 128 (0%)Kurlon Ltd 1025 (0%)AV Thomas 22000 (0%)Bazar India 24 (0%)Tata Capital 825 (6.5%)Polymatech Electronics Pvt Ltd 76 (2.7%)SBI Mutual Fund 2775 (0%)Goodluck Defence 318 (0%)AVPL 50 (-3.8%)Inkel Ltd 20 (0%)Matrix Gas and Renewables 32 (-5.9%)RRP S4E Innovation 315 (17.5%)Quality Enviro 1350 (0%)Greenzo Energy Pvt Ltd 665 (-1.5%)Spray Engineering Devices 305 (0%)Honeywell Electrical Devices and Systems 5000 (0%)Veeda Clinical Research Limited 475 (0%)NCDEX 342 (-3.7%)Onix Renewable 185 (-19.6%)Swiggy CCPS 574410 (0%)HCIN Network 165 (0%)Apollo Green Energy 102 (-13.6%)Ecosure Pulpmolding 49 (0%)Pace Digitek 220 (2.3%)Downtown Hospital Ltd 375 (0%)Amol Minechem Ltd 995 (0%)Manjushree Technopack 1025 (0%)KLM Axiva Finvest 18 (0%)Hinduja Leyland Finance 255 (18.6%)IKF Finance 425 (0%)Lords Mark Industries 108 (-1.8%)Vikran Engineering IPO 185 (-1.6%)Zappfresh 118 (0%)PXIL 578 (2.3%)Optivalue Tek Consulting IPO 80 (-38.5%)Incred Holdings 165 (0%)Transline Technologies 165 (-10.8%)Bootes Impex Tech Ltd 1950 (-7.1%)Lenskart Solutions Pvt Ltd 520 (73.3%)Ticker Ltd 35 (0%)Physics Wallah 145 (0%)GFCL EV Product LTD 49 (-9.3%)Big Basket 1950 (0%)Cheelizza Pizza India Ltd 78 (-22%)Kineco Limited 2950 (-4.8%)Pine Labs Pvt Ltd 365 (0%)Parag Parikh Financial Advisory 14750 (14.3%)Anugraha Valve Castings Ltd 695 (3%)Skyways Air Services Ltd 140 (0%)

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Valuation Of UNLISTED SHARES

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Get Best Deals on Unlisted Shares


Summary

Every investor wants to seek the most return on their investment. Value investors do their utmost to locate excellent companies at reasonable rates. There are a number of valuation models that may be used to calculate a stock's intrinsic value in order to evaluate if it is trading at an over-valued price or an or a cheap price. Everything is based on how much the stock is worth. Stock valuation is simple when the stock is listed on significant stock exchanges. Since there is no market price accessible for unlisted equities, determining their fair value can be challenging. Everything pertaining to unlisted shares is based on either book values or assumptions.


How Are Unlisted Stocks Valued?

Since  unlisted shares are not traded on a stock exchange and do not have a predetermined price, they are exchanged on the over-the-counter market. An unlisted company's share price can be determined in a number of ways because no one approach would be appropriate for valuing all shares. The following techniques are used to assess unlisted share prices.

  1. Book Value Approach

    Book Value Approach, company's physical assets and liabilities are considered using this strategy. Verify that the company's assets and liabilities are fairly evaluated and revalued annually.

    All tangible assets - All tangible liabilities=Book Value.

    The liabilities and assets must be revalued annually, and the assets must have fair worth. You might have to compute a capitalization ratio for this method as well and use it. 

    The only intangible asset that can constitute an asset is goodwill; all other intangible assets cannot. Since goodwill cannot be produced by the company internally, it can be added.

  2. Method of Last Transaction Price

    With this strategy, one attempts to calculate the value of unlisted shares based on the price at which the business last received money.

    Institutional investors are seen as wise, and as they are frequently among the first to invest in these companies and frequently have access to insider information, they give the market direction on how to value these businesses.

    The last price at which the unlisted share was traded is taken into account in this procedure, as the name implies. The price at which the prior trade occurred does not always have to be accurate for the current trade; the price of the shares can be overvalued or undervalued. This method is typically not used.

  3. Discounted cash flow method or price to earnings ratio

    It is one of the most popular techniques, but it is only appropriate for businesses with solid business operations because existing earnings are taken into account when estimating future cash flow. Once that is predicted, you must apply a discount rate to these potential future cash flows. This rate can be calculated using the listed companies on the stock exchange in the same sector.

  4. Value of Net Assets (NAV) Including Goodwill

    The main distinction between net asset value and book value is that net asset value is determined using the current price on the stock market, whereas book value relies on historical prices.

    NAV=Sum of all tangible assets with current market value - Sum of all tangible liabilities with current market value.

    The market price must be used to determine the worth of all assets and liabilities. The system takes most current appraisals within a year into account.

  5. Value of Net Assets (NAV) Excluding Goodwill

    The sole distinction between this technique and the one before is that it does not include goodwill and intangible assets and liabilities, whereas the above method does.

    With this approach, the market value of the assets and liabilities is taken into account.

    NAV=Sum of all tangible & intangible assets with current market value - Sum of all tangible & intangible liabilities with current market value.

Final Thought

The Present Value Method, also known as the Discounted Cash Flow Method, and the Book Value Method are the two most used techniques for valuing a company's unlisted shares.

The other two are hardly ever utilised in comparison to these two. For the investor, the value of unlisted shares is quite important. However, the appraisal is highly challenging because the company's information and financial data are not readily available.

Therefore, if you plan to invest in unlisted stocks of any company, you need to gather all the information that is accessible and properly process it to get a better idea of the unlisted shares' fair market value.

Top Unlisted Companies & InstaBuy Companies

Sell or Purchase Share (Tentative Price)

Fundamental Analysis

Company Industry Stock P/E P/B Company rating MCAP (in Cr.) Current Price
Pharmeasy e-Commerce -1.8 1.8 4659 7.3
Reliance Retail Retailing 141.5 23 698659 1400
Orbis Financial Finance - Investment 45.2 9.3 6391 525

Top Recommendations

Hexaware Technologies

It is a leading global provider of BPO and IT services. Hexaware Technologies Limited provides IT consulting, software development, and business process services.

Unique Features

  • Delisted Company
  • Undervalued Stocks
  • Likely to Grow 2x

API Holdings

Incorporated in 2019, The company operates a consumer healthcare app called PharmEasy that enables the home delivery of pharmaceutical products.

Unique Features

  • Market Leader
  • Available now at 66% discount
  • QIB's invest at Rs.100 per share.

Sterlite Power

Sterlite Power began on 5th May 2015 and is headquartered in Delhi. It is a leading developer & solution provider in integrated power transmission.

Unique Features

  • Likely to grow in 4-5 years
  • Part of Vedanta Group
  • Decent Valuation

Signify Innovation

Incorporated in 2015. Signify is into the manufacturing of electric lights and light fixtures for consumers and professionals.

Unique Features

  • Lighting Industry
  • Part of Philips Group
  • Decent Valuation

Chennai Super Kings

CSK is a subsidiary brand of India Cements. This company is quite popular in India as it known for its cricket team.

Unique Features

  • Most loved IPL Team
  • LIC holds more than 6% Shares
  • One of the best businesses

Elcid Investment

Elcid Investments Limited was incorporated on 3 December 1981 in Mumbai. It is a Non-Banking Finance Company registered with the Reserve Bank of India.

Unique Features

  • NBFC
  • Listed Company
  • Book Value is Rs.6,16,440.

Studds Accessories

STUDDS is a leading manufacturer of motorcycle accessories and helmets. They become the largest helmet manufacturer (two-wheeler) in the world.

Unique Features

  • No.1 Brand of Helmets
  • Having business in 20+ countries
  • Trustworthy Management

Mohan Meakin

Mohan Meakin manufactures alcoholic beverages such as rum, whisky, beer, etc., and non-alcoholic beverages like apple juice, mineral water, etc.

Unique Features

  • Delisted Company
  • Decent Valuation
  • Popular alcoholic (Old Monk)

Orbis Financial

Orbis is recognized as a leading player in the Financial Services Industry, providing Securities Services since 2009 to FDI, Corporate, HNI's.

Unique Features

  • leading player
  • Decent Valuation
  • Excellent growth

Schneider Electric

Schneider Electric President Systems Limited is a designer, manufacturer and supplier of customized enclosure systems for over 30 years.

Unique Features

  • Delisted Company
  • Undervalued Stocks
  • In FY22, 45% growth in Sales

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Success Stories

How Your Money Can Grow With Us

ICICI Prudential

Pre IPO Price:
130
IPO Price:
334
Listing Price:
310
Absoulte return 138%

1 Lac Invested in ICICI Prudential pre-ipo turned into 2.3 Lac after listing.

ICICI Lombard

Pre IPO Price:
400
IPO Price:
661
Listing Price:
680
Absoulte return 70%

1 Lac Invested in ICICI Lombard pre-ipo turned into 1.7 Lac after listing.

HDFC Life

Pre IPO Price:
210
IPO Price:
290
Listing Price:
344
Absoulte return 64%

1 Lac Invested in HDFC Life pre-ipo turned into 1.6 Lac after listing.

AU Small Finance Bank

Pre IPO Price:
175
IPO Price:
358
Listing Price:
597
Absoulte return 241%

1 Lac Invested in AU Small Finance Bank pre-ipo turned into 3.4 Lac after listing.

RBL Bank

Pre IPO Price:
60
IPO Price:
225
Listing Price:
301
Absoulte return 402%

1 Lac Invested in RBL Bank pre-ipo turned into 5 Lac after listing.

BSE

Pre IPO Price:
200
IPO Price:
806
Listing Price:
1069
Absoulte return 435%

1 Lac Invested in BSE pre-ipo turned into 5.3 Lac after listing.

CDSL

Pre IPO Price:
60
IPO Price:
150
Listing Price:
261
Absoulte return 335%

1 Lac Invested in CDSL pre-ipo turned into 4.3 Lac after listing.

Nazara Tech

Pre IPO Price:
545
IPO Price:
1101
Listing Price:
1990
Absoulte return 265%

1 Lac Invested in Nazara Tech pre-ipo turned into 3.6 Lac after listing.

Dmart Avenue

Pre IPO Price:
280
IPO Price:
300
Listing Price:
616
Absoulte return 120%

1 Lac Invested in Dmart Avenue pre-ipo turned into 2.2 Lac after listing.

Reliance Retail Ltd

Price in 2019:
450
Current Price:
3250
Absoulte return 622.22%

1 Lac Invested in Reliance Retail Ltd pre-ipo turned into 7.2 Lac.

Tata Technologies

Price in 2019:
1100
Current Price:
6350
Absoulte return 477.27%

1 Lac Invested in Tata Technologies pre-ipo turned into 5.7 Lac.

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