3 profitable giants trading below book value with up to 6% dividend yield

Dividends are like the rent an investor earns for owning a stock. The share price may keep moving up and down in the market. But a dividend, when declared regularly, puts actual money back in the investor’s hand. That is why dividend-paying stocks often attract investors who want some steady income along with possible capital appreciation.

But dividend alone is not enough. Investors also look at valuation. One simple way to do that is by comparing the current market price with the company’s book value. Book value broadly shows the net worth of a company on its books. When a stock trades below book value, it means the market price is lower than its reported book value per share. This does not automatically make it cheap. But it does make the stock worth a closer look.

In this article, we look at three stocks where both these factors come together. These companies trade below their book value and also offer a healthy dividend returns. The idea is not to call them risk-free bets. The idea is to see where dividend income meets low price-to-book valuation.

For this screen, we first considered companies with a market capitalisation of more than Rs 5,000 crore. We then selected stocks where the current price was lower than the book value. We added a dividend yield filter of more than 3%. Finally, we kept only companies that reported a positive net profit in the latest quarter. After this, the final three stocks were selected based on dividend visibility, business relevance and a clearer fit with the below-book value theme.

#1 Oil and Natural Gas Corporation (ONGC): Strategic Pivot Toward Gas-Led Production

Oil and Natural Gas Corporation (ONGC) is the largest crude oil and natural gas company in India, contributing around 71% to Indian domestic production.

ONGC Financial Performance

Metric	ONGC
FY26 revenue growth YoY	8.2%
FY26 PAT growth YoY	30%
Dividend yield	5%
Current price vs book value	Rs 244 vs Rs 296
RoCE	14.2%
RoE	11.7%

Source: Screener.in and Q4 Earnings call transcript

Valuation Discount: Assessing the EV/EBITDA Margin to Book Value

ONGC is one of the clearer fits in the below-book dividend screen. The stock traded at Rs 244 as on 14 June 2026, against a book value of about Rs 296 per share. This means the market price is below the company’s reported net worth per share. The valuation also remains modest, with EV/EBITDA at 3.8 times, compared with its five-year EV/EBITDA of 4 times. Return on Capital Earnings (RoCE) stands at 14.2%, while return on equity (RoE) is 11.7%.

The dividend record is central to the case. ONGC has declared 62 dividends since 2001. For FY26, the company declared a total dividend of Rs 13.25 per share. The company said this translated into its highest-ever total dividend payout of Rs 16,669 crore. FY26’s dividend payout ratio stood at 51% of profit. It was trading at a dividend yield is 5% as of 16 June.

For FY26, its sales increased by 8.2% year-on-year (YoY) to Rs 6,62,247 crore. Its consolidated profit after tax (PAT) rose 30% to Rs 49,793 crore, supported by subsidiaries such as HPCL, MRPL, ONGC Videsh and OPaL. Standalone annual PAT, however, declined to Rs 32,894 crore from Rs 35,610 crore in FY25, mainly due to lower crude realisation.

Gas Monetization: Tracking the Timelines for KG 98/2 and Mature Assets

The company’s core growth focus is now shifting more towards gas. ONGC said new well gas is becoming a larger part of its portfolio. Management expects this share to rise further in FY27. The DUDP project has started monetisation, with wells expected to open gradually. The company also expects gas from KG 98/2 to begin opening around July-August, though the oil side has faced geological challenges.

ONGC is also trying to arrest decline in mature assets. It is executing projects worth around Rs 33,000 crore in Western Offshore. This region remains critical, as it contributes around 60% of ONGC’s oil and 70% of its gas. The company has also expanded its technical service partnership with BP across the full Western Offshore area. The impact is expected to be gradual, as upstream projects usually take time to reflect in production.

#2 IOCL: Operational Scaling Across the Hydrocarbon Value Chain

IOCL is the largest oil producer in India. The company has business interests straddling the entire hydrocarbon value chain from refining to exploration, production, and marketing of natural gas and petrochemicals.

IOCL Financial Performance

Metric	IOCL
FY26 revenue growth YoY	4.8%
FY26 PAT growth YoY	183.9%
Dividend yield	4.8%
RoCE	18.8%
RoE	20.7%
EV/EBITDA	4.0x

Source: Screener.in and Q4 Earnings call transcript

IOCL is another large state-owned name in the below-book dividend screen. As on 16 June 2026 it traded around Rs 144, against a book value of about Rs 155 per share. This places the market price below its reported book value. The valuation also looks modest on operating earnings. IOCL trades at an EV/EBITDA of around 4 times, against its five-year EV/EBITDA of 5.1 times. Its RoCE stands at 18.8%, while RoE is 20.7%.

The dividend record supports the income angle. IOCL has declared 42 dividends since 2001. For FY26, it declared a dividend of Rs 5 per share. The company’s dividend payout ratio stood at 31% of PAT in FY26. This makes the stock relevant for a dividend-plus-value screen. But the dividend should be seen with the usual risks of fuel margins and crude price volatility. It was trading at a dividend yield is 4.8% as of 16 June.

Earnings Cyclicality: Evaluating the 183.9% Net Profit Rebound

For FY26, IOCL reported revenue from operations of Rs 8,86,224 crore. This was up around 4.8% YoY. Net profit rose 183.9% to Rs 36,802 crore YoY. The recovery was helped by stronger refining and marketing performance after a weak FY25 base.

Operationally, FY26 was a record year for the company. IOCL reported its highest-ever crude throughput of 75.5 million metric tonne (MMT). Pipeline throughput also reached a record 105.6 MMT. Sales volume stood at 105.1 MMT, another all-time high. The company also reported record gas sales of 7.3 MMT and highest-ever petrochemical sales of 3.4 MMT. Lubricant sales grew around 16% to 905 TMT.

Downstream Infrastructure: Completion Status Across Key Refinery Expansions

The company’s expansion pipeline remains large. The Panipat refinery expansion, from 15 mllion metric ton per annum (MMTPA) to 25 MMTPA, was 92.8% complete as of March 2026. It is expected to start progressively from June 2026 and be commissioned by December 2026. The Gujarat refinery expansion, from 13.7 MMTPA to 18 MMTPA, was 87.8% complete and is expected by November 2026. The Barauni refinery expansion, from 6 MMTPA to 9 MMTPA, was 90.5% complete and is expected by August 2026.

IOCL is also expanding linked infrastructure. The PX-PTA complex at Paradip refinery was 93.5% complete and is expected by August 2026. The new Mundra-Panipat crude oil pipeline was 90.8% complete and is expected by June 2026.

The poly butadiene rubber plant at Panipat was 84.3% complete and is also expected by June 2026. These projects show that the company is not only adding refining capacity. It is also building petrochemical and pipeline assets around the core fuel business.

For FY27, IOCL has set a capex target of Rs 32,700 crore. In FY26, it incurred provisional capex of Rs 32,405 crore. The largest spends were in refinery and marketing, followed by petrochemicals and pipelines. This keeps the growth focus tied to domestic fuel demand, refining scale and downstream integration.

IOCL’s case is therefore clear but not risk-free. It fits the article’s theme because it trades below book value and carries a steady dividend record. It also has strong scale and visible expansion projects. At the same time, it remains exposed to crude prices, refining margins and policy decisions on fuel pricing. For investors, the stock is a value-and-income candidate. But its returns will still depend on how well margins hold as new capacity comes on stream.

In the past year, the share price of IOCL is down 3.3%.

IOCL Share Price 1 Year Share Price Chart

#3 PTC India: Volume Plays in an Evolving Power Market

PTC India was established in 1999 by the Government of India as a Public-Private Initiative and is in the power trading business.

PTC India Financial Performance

Metric	IOCL
FY26 revenue growth YoY	6.6%
FY26 PAT growth YoY	17%*
Dividend yield	6%
RoCE	13.4%
RoE	10.3%
EV/EBITDA	2.9x

Source: Screener.in and Q4 Earnings call transcript
*Comparable consolidated PAT before PTC Energy sale impact.

PTC India fits the below-book dividend theme with a different profile from the oil and gas names. The stock trades around Rs 191, against a book value of about Rs 202 per share. This places the market price below its reported book value. Its valuation also looks modest, with EV/EBITDA at 2.9 times, compared with a five-year EV/EBITDA of 6.8 times. RoCE stands at 13.4%, while RoE is 10.3%.

The dividend angle is important here. PTC India has declared 26 dividends since 2004. In FY26, the company has declared an interim dividend of Rs 3 per share so far. The yield remains among the stronger ones in the below-book screen. This makes the stock relevant for investors looking at dividend income along with low price-to-book valuation. It was trading at a dividend yield is 6% as of 16 June.

For FY26, PTC India reported gross turnover of Rs 36,672 crore, including exchange transactions. This was up around 6.6% from Rs 34,400 crore in FY25. The profit picture needs to be read carefully. Reported profit was affected by the previous year’s gain from the sale of PTC Energy. Excluding that one-off item, standalone profit after tax for the quarter rose 18% to Rs 75.7 crore.

For the full year, comparable standalone PAT remained around Rs 397 crore. On a consolidated basis, PAT before the PTC Energy sale impact rose 17% to Rs 717 crore in FY26 from Rs 612 crore in FY25.

Volume Over Margins: Adapting to India’s Peak 260 GW Power Grid Demand

The company’s operating theme is closely tied to India’s changing power market. PTC said the need for power trading is increasing as demand peaks rise and tariffs vary sharply during different parts of the day. The company said India recently touched a peak demand of around 260 GW. It expects electricity demand to grow around 5% annually, which should support trading volumes over the next few years.

PTC is also seeing a shift in its business mix. Short-term trades now account for 56% of the business, as buyers are less willing to enter into very long-term power agreements. The company said future growth is likely to come more from volume expansion than margin improvement. Competition remains high, especially in exchange-based and plain short-term transactions.

Portfolio Diversification: Renewable Energy Certificates and Cross-Border Contracts

The renewable energy and energy-transition angle is also becoming more visible. PTC said renewable energy now contributes about 26% of India’s total power generation, compared with 16% a decade ago. The company is working on renewable energy certificates, battery storage power, green power supply for green hydrogen projects and power supply discussions with data centres. It has also signed an arrangement with NLC India Renewables to explore hydro and renewable energy projects, subject to approvals.

The cross-border business remains another important area. PTC said it has added clients in the cross-border domain and is also working on an ADB-funded project to help develop power markets across Laos, Thailand and Cambodia. The company continues to see cross-border and long-term contracts as areas where it has a stronger position than many smaller traders.

Conclusion

These stocks pass the screen, but they still need care. A stock trading below book value can be interesting. But it can also be cheap for a reason.

ONGC, IOCL and PTC India have one thing in common. They are profitable. They pay dividends. And their market price is lower than their book value. That is why they stand out in this screen.

Still, the risks are different for each company. ONGC depends on crude prices and gas output. IOCL depends on refining margins and fuel pricing. PTC India depends on power trading volumes.

So this is not a list of risk-free dividend stocks. It is a list of stocks where dividend yield and low valuation meet. Investors should look at the business, cash flows and risks before taking a call.

Metric	ONGC	IOCL	PTC India
Dividend yield	5%	4.8%	6%
Current price vs book value	Rs 244 vs Rs 296	Rs 144 vs Rs 155	Rs 191 vs Rs 202
RoCE	14.2%	18.8%	13.4%
RoE	11.7%	20.7%	10.3%
Dividend history	62 dividends since 2001	42 dividends since 2001	26 dividends since 2004
Growth visibility	Gas-led production push; Western Offshore projects	Refinery, pipeline and petchem expansion	Power trading volumes; short-term market growth
Key theme	Upstream energy cash flows	Refining and fuel-marketing scale	Power trading and energy market shift

You can track how these are progressing by adding stocks to your watchlist.

Disclaimer:

Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.

The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.

Ekta Sonecha Desai has a passion for writing and a deep interest in the equity markets. Combined with an analytical approach, she likes to deep dive into the world of companies, studying their performance, and uncovering insights that bring value to her readers.

Disclosure: The writer and her dependents do not hold the stocks discussed in this article.

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