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Tata Capital 1010 (-6%)NSE India 6500 (0%)SBI Mutual Fund 2100 (6.3%)Essar Oil 600 (9.1%)HDB Financial 1125 (3.7%)Swiggy 390 (0%)Capgemini Technology 12000 (0%)Waaree Energies Ltd 2275 (0%)OYO 46 (21.1%)Hero Fincorp 2050 (0%)Hexaware 725 (17.9%)AB Inbev Sabmiller 350 (0%)HDFC Securities 11800 (0%)Care Health Insurance 198 (0%)BOAT 1395 (0%)CIAL 298 (1%)Indian Potash 3400 (-2.9%)Signify Innovations 1650 (0%)Motilal Oswal 15 (0%)Electrosteel Steel Ltd 46 (-6.1%)Sterlite Power 685 (-1.4%)Shriram Life Insurance 400 (0%)VIkram Solar Ltd 265 (12.8%)Pharmeasy 11 (0%)Carrier Airconditioning 575 (27.8%)Polymatech Electronics Pvt Ltd 795 (-8.1%)Fincare Small Finance Bank 260 (0%)Philips India 975 (0%)CSK 174 (-0.6%)iXigo 140 (-3.4%)Kurlon Ltd 1300 (0%)Otis Elevator 3950 (0%)Philips Domestic Appliances 750 (0%)Merino Industries 3300 (0%)Elcid Investments 165000 (3.1%)Mobikwik 575 (0%)Bharat Bank 10650 (0%)Lava 55 (0%)Orbis Financial 290 (-1.7%)Matrix Gas and Renewables 995 (10.6%)Indofil Industries 1075 (4.9%)Kurlon Ent 600 (0%)ESDS Software 225 (0%)Studds 975 (0%)GKN Driveline 1425 (0%)Kannur International Airport 128 (2.4%)Mohan Meakin 1995 (0%)Fino Paytech Limited 150 (-3.2%)Lakeshore Hospital 135 (0%)Bira 585 (-1.7%)Goodluck Defence 225 (0%)AV Thomas 22000 (0%)MSEI 1.3 (0%)Urban Tots 100 (0%)Ring Plus 595 (0%)Martin and Harris Lab 1100 (0%)Schneider Electric 675 (0%)NCL Buildtek 315 (6.8%)Maharashtra Knowledge Corporation MKCL 450 (0%)India Carbon ltd 1350 (-6.9%)ICEX 6 (0%)AVPL 65 (0%)Empire Spices and Foods ltd 585 (0%)RRP S four E Innovation 285 (0%)Resins and Plastic 550 (0%)PolicyX 50 (0%)Maxvalue Credits And Investments 6.5 (0%)Ramaraju Surgical Cotton 325 (0%)ICL Fincorp 26 (0%)Assam Carbon Products 325 (0%)Bazar India 28 (0%)Madbow 50 (0%)Silverline Technologies Ltd 12 (20%)ACS Technologies 46 (0%)Market Simplified 39 (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 -1.7 1 6756 11
Reliance Retail Retailing 141.5 23 698659 1400
Orbis Financial Finance - Investment 57.2 12.3 2735 290

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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