Take for instance petrochemical giant Reliance Industries, the scrip is trading at a PE of just 5.77 times and at price to book value ratio of 1.13 times. The company will be announcing its second quarter results in a couple of days. The company's first quarter net profit rose 17.6 per cent inspite of the slowdown in economy and a worldwide recession in the petrochemical industry. The scrip is currently trading at Rs 109.3 near its 52 week-low of Rs 102.

State Bank of India is currently trading at Rs 182.56 at a PE of just 5.68 times. The bank reported a 33.15 per cent increase in net profit for the first quarter. State Bank has seen a high of Rs 308 in the last twelve months. A price to book value ratio of mere one is ridiculousfor the country's banking leader. If one adds the first quarter net profit to reserves then the scrip is trading at a discount.

The two petroleum companies, BPCL and HPCL, are trading at a discount of 5.64 and 8.2. The former had reported more than 50 per cent increase in net profit and the latter a 25 per cent rise. Both are trading at mere 1.4 times their book values.