3 Largecap Stocks Trading Below Industry PE to Watch for Future Multibagger Potential: JSW Steel, IOC and PFC
- October 19, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
JSW Steel Rs 1,216.30. IOC Rs 130.38. PFC Rs 333.25. Market caps from Rs 1.13 lakh crore to Rs 2.94 lakh crore. Data as of 16 Oct 2026.
Quick Answer
JSW Steel, IOC and PFC are the 3 picks in this stocks trading below industry PE watchlist, with market caps between Rs 1.13 lakh crore and Rs 2.94 lakh crore. JSW Steel stands out for the strongest latest-quarter profit growth at 112.58%, while IOC offers the highest return on equity at 19.18%. PE ratios run from 3.36 to 10.49, so compare each one with its industry PE before investing. All figures are as of 16 October 2026.
Stocks trading below industry PE to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. JSW Steel, IOC and PFC meet that test, with market caps from Rs 1.13 lakh crore to Rs 2.94 lakh crore and JSW Steel offering the strongest latest-quarter profit growth at 112.58%. Each of these large companies trades at less than 60 per cent of its industry PE, so the market pays less for its earnings than for its peers.
This list covers large companies whose PE ratio is below 60 per cent of the industry PE, with rising profit and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap above Rs 1 lakh crore. Investors screening stocks trading below industry PE usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 16 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Stocks Trading Below Industry PE and Why Do They Attract Multibagger Interest?
Stocks trading below industry PE are shares whose PE ratio is well below the average for their industry. A lower PE than peers means investors pay less for each rupee of profit, which can leave room for the gap to narrow if earnings keep growing.
A discount to the industry PE is useful when the company’s profit is rising and its balance sheet is sound. Businesses that meet these tests and pay regular dividends are the ones investors compare in stocks trading below industry PE.
Stocks Trading Below Industry PE at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 16 October 2026. PFC has the lowest PE of the group at 3.36, while IOC posts the highest return on equity at 19.18%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| JSW Steel | 1,216.30 | 2,93,638 | 10.49 | 22.42 | 7.21% | 2.94 | 1,073.20 to 1,351.00 |
| Indian Oil Corporation | 130.38 | 1,81,529 | 5.08 | 15.10 | 19.18% | 0.83 | 124.92 to 188.96 |
| Power Finance Corporation | 333.25 | 1,12,946 | 3.36 | 17.68 | 18.22% | 0.79 | 313.35 to 486.50 |
JSW Steel: Quarterly Profit Up 112.58%
JSW Steel is one of India’s largest steel producers, with integrated plants across the country. It reported FY26 revenue of Rs 1,86,718 crore, up 10.15% year on year, and net profit of Rs 25,508 crore, up 630.68%. Net profit has compounded at 5.06% a year since FY22, while revenue has grown 6.00% a year. Operating margin was 16.56% in FY26.
In the June 2026 quarter, revenue rose 10.55% to Rs 48,088 crore and net profit grew 112.58% to Rs 4,696 crore. The share price has gained 68.48% over five years. Domestic institutions raised their holding from 10.92% in June 2025 to 11.49% in June 2026. The stock trades at a PE of 10.49 against an industry PE of 22.42, below the sector average.
IOC: Profit Compounding at 14.15% a Year
Indian Oil Corporation is India’s largest oil refiner and fuel marketer, with a pipeline network and a petrochemicals business. It reported FY26 revenue of Rs 7,88,578.42 crore, up 3.54% year on year, and net profit of Rs 43,677.32 crore, up 216.76%. Net profit has compounded at 14.15% a year since FY22, while revenue has grown 7.41% a year. Operating margin was 9.35% in FY26.
The stock trades at a PE of 5.08 against an industry PE of 15.10, below the sector average, with a return on equity of 19.18%. Revenue for the June 2026 quarter rose 26.95% to Rs 2,82,379.02 crore. Foreign investors raised their holding from 7.48% in June 2025 to 9.08% in June 2026.
PFC: Five-Year Gain of 179.34%
Power Finance Corporation is a government-owned lender that finances power generation, transmission, distribution and renewable energy projects. It reported FY26 total income of Rs 1,15,533.18 crore, up 8.38% year on year, and net profit of Rs 33,625.34 crore, up 10.19%. Net profit has compounded at 15.69% a year since FY22, while total income has grown 10.91% a year.
Net profit for the June 2026 quarter grew 0.18% to Rs 8,997.92 crore. The share price has gained 179.34% over five years. Foreign investors raised their holding from 18.66% in June 2025 to 20.54% in June 2026. The stock trades at a PE of 3.36 against an industry PE of 17.68, below the sector average, with a return on equity of 18.22%. The dividend yield is 5.42%.
Stocks Trading Below Industry PE: Financial Comparison on Growth and Margins
The table compares scale and growth across these stocks trading below industry PE. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.
| Stock | Revenue (Rs Cr) | Net Profit (Rs Cr) | Revenue Growth (YoY) | 4-Year Revenue CAGR | 4-Year Net Profit CAGR |
|---|---|---|---|---|---|
| JSW Steel | 1,86,718 | 25,508 | 10.15% | 6.00% | 5.06% |
| IOC | 7,88,578.42 | 43,677.32 | 3.54% | 7.41% | 14.15% |
| PFC | 1,15,533.18 | 33,625.34 | 8.38% | 10.91% | 15.69% |
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Institutional Holding in JSW Steel, IOC and PFC
Institutional holding shows who is backing these stocks trading below industry PE alongside the promoter. The table uses the latest reported quarter for each. JSW Steel has the deepest institutional backing, with FII and DII together holding 37.41% as of June 2026. Domestic institutions increased their holding over the past year in JSW Steel (from 10.92% to 11.49%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| JSW Steel | 44.29% | 25.92% | 11.49% | 18.30% | June 2026 |
| IOC | 51.50% | 9.08% | 9.62% | 29.80% | June 2026 |
| PFC | 55.99% | 20.54% | 14.51% | 8.96% | June 2026 |
Risks to Weigh in Stocks Trading Below Industry PE
Being careful with stocks trading below industry PE means looking at what can slow the story as well as what can speed it up. Four points matter most:
- A PE below the industry can reflect cyclical earnings.
- Check that profit growth is sustainable.
- Valuation: A low PE can also reflect slower growth, so compare each PE with the growth rate instead of reading it alone.
- Concentration: Holding all 3 names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between Stocks Trading Below Industry PE
Picking from stocks trading below industry PE comes down to four checks, applied in order.
- Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.
- Compare each PE with the industry PE (15.10 to 22.42) and ask whether the growth rate justifies any gap.
- Track the PE ratio against the industry PE, profit growth and the dividend payout in every result.
- Stagger entries across quarters and review institutional holding every reporting season.
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Conclusion
Among stocks trading below industry PE, JSW Steel stands out for the strongest latest-quarter profit growth at 112.58%, IOC for the highest return on equity at 19.18% and PFC for the fastest profit growth, 15.69% a year since FY22. Which one suits a portfolio depends on how much valuation risk it can carry, so staggering entries and reviewing each quarterly result is a sound habit. Investors comparing stocks trading below industry PE should rank them on growth, financial strength and the price paid, and anyone who wants personalised guidance can consult a SEBI-registered advisor before acting.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions on Stocks Trading Below Industry PE to Watch
Which are the best stocks trading below industry PE to watch for multibagger potential?
Ans. JSW Steel, IOC and PFC are the 3 names this list highlights, with market caps of Rs 2,93,638 crore, Rs 1,81,529 crore and Rs 1,12,946 crore respectively. JSW Steel is notable for the strongest latest-quarter profit growth at 112.58%. IOC stands out for the highest return on equity at 19.18%. PFC offers the fastest profit growth, 15.69% a year since FY22. These are watchlist names for stocks trading below industry PE, not recommendations, so match each one to your own risk profile and time horizon.
Is IOC a good stock for long-term investors?
Ans. IOC has a return on equity of 19.18%, a PE of 5.08 against an industry PE of 15.10 and a market cap of Rs 1,81,529 crore. Net profit has compounded at 14.15% a year since FY22, and FY26 revenue rose 3.54% while June 2026 quarter revenue grew 26.95%. Long-term returns in stocks trading below industry PE depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can PFC become a multibagger from here?
Ans. PFC has already gained 179.34% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in stocks trading below industry PE requires earnings to keep growing faster than the market for several years. Net profit has compounded at 15.69% a year since FY22, and FY26 revenue rose 8.38%. At a PE of 3.36 against an industry PE of 17.68, valuation should be checked against that growth before investing.
What is the market cap of JSW Steel, IOC and PFC?
Ans. As of 16 October 2026, JSW Steel has a market cap of Rs 2,93,638 crore, IOC has a market cap of Rs 1,81,529 crore and PFC has a market cap of Rs 1,12,946 crore. All of them qualify as largecaps. Market cap changes daily with the share price, so check the latest figure on the Univest Screener or on NSE before taking a decision on stocks trading below industry PE.
What are the risks of investing in stocks trading below industry PE?
Ans. The main risks are cyclical earnings, commodity or rate swings and a discount that stays for long. Companies with steady cash flows and regular dividends handle these better. Comparing each PE with growth gives a fuller picture than the PE alone.
Is PFC trading below its industry PE?
Ans. PFC trades at a PE of 3.36 against an industry PE of 17.68. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 15.69% a year since FY22 and FY26 revenue rose 8.38%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in JSW Steel, IOC and PFC?
Ans. As of the latest reported quarter, FII and DII together hold 37.41% of JSW Steel (25.92% and 11.49%), 18.70% of IOC (9.08% and 9.62%) and 35.05% of PFC (20.54% and 14.51%). Rising institutional holding is a useful signal in stocks trading below industry PE, though it should be read with earnings trends rather than on its own.
