3 Top Stocks Trading Below Book Value to Watch for Future Multibagger Potential: ONGC, IOC and GIC Re
- October 19, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
ONGC Rs 222. IOC Rs 130.38. GIC Re Rs 327.55. Market caps from Rs 57,185 crore to Rs 2.83 lakh crore. Data as of 16 Oct 2026.
Quick Answer
ONGC, IOC and GIC Re are the 3 picks in this stocks trading below book value watchlist, with market caps between Rs 57,185 crore and Rs 2.83 lakh crore. ONGC stands out for the largest market cap at Rs 2,83,245 crore, while IOC offers the highest return on equity at 19.18%. PE ratios run from 5.08 to 6.44, so compare each one with its industry PE before investing. All figures are as of 16 October 2026.
Stocks trading below book value to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. ONGC, IOC and GIC Re meet that test, with market caps from Rs 57,185 crore to Rs 2.83 lakh crore and ONGC offering the largest market cap at Rs 2,83,245 crore. Each of these companies trades below the value of its net assets, with a price to book ratio under 1, and profits are growing.
This list covers companies with a price to book ratio below 1, rising profit and complete, verifiable financials, ranked by market capitalisation. Not every name here is a largecap, so the list takes the leading companies of the sector by market capitalisation. Investors screening stocks trading below book value 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 Book Value and Why Do They Attract Multibagger Interest?
Stocks trading below book value are shares whose market price is lower than the book value of the company’s net assets. A price to book ratio below 1 means investors can buy the assets at less than their accounting value.
Low price to book is only useful when the company earns healthy profit on its assets and keeps growing. Businesses that meet these tests and pay regular dividends are the ones investors compare in stocks trading below book value.
Stocks Trading Below Book Value at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 16 October 2026. IOC combines the lowest PE of the group, 5.08, with the highest return on equity, 19.18%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Oil and Natural Gas Corporation | 222 | 2,83,245 | 6.32 | 7.16 | 11.14% | 0.76 | 218.53 to 307.50 |
| Indian Oil Corporation | 130.38 | 1,81,529 | 5.08 | 15.10 | 19.18% | 0.83 | 124.92 to 188.96 |
| General Insurance Corporation of India | 327.55 | 57,185 | 6.44 | 10.47 | 11.97% | 0.77 | 259.65 to 394.00 |
ONGC: Profit Compounding at 0.25% a Year
ONGC is India’s largest crude oil and natural gas producer, owned by the Government of India, with an overseas arm in ONGC Videsh. It reported FY26 revenue of Rs 6,21,019.28 crore and net profit of Rs 49,793.10 crore, up 29.91%. Revenue has compounded at 5.64% a year since FY22. Operating margin was 17.82% in FY26. The debt-to-equity ratio is 0.47.
Revenue for the June 2026 quarter rose 25.48% to Rs 2,07,775.93 crore, at an operating margin of 9.44%. Foreign investors raised their holding from 7.09% in June 2025 to 8.01% in June 2026. The stock trades at a PE of 6.32 against an industry PE of 7.16, below the sector average. The dividend yield is 3.22%.
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.
GIC Re: 42.24% Profit CAGR Since FY22
General Insurance Corporation of India, or GIC Re, is India’s national reinsurer and takes on risk from domestic and global insurers. It reported FY26 total income of Rs 54,356.64 crore, up 8.88% year on year, and net profit of Rs 9,000.49 crore, up 29.06%. Net profit has compounded at 42.24% a year since FY22, while total income has grown 2.24% a year.
Domestic institutions raised their holding from 13.30% in June 2025 to 17.73% in June 2026. The stock trades at a PE of 6.44 against an industry PE of 10.47, below the sector average. The dividend yield is 4.07%.
Stocks Trading Below Book Value: Financial Comparison on Growth and Margins
The table compares scale and growth across these stocks trading below book value. 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) | 4-Year Revenue CAGR | 4-Year Net Profit CAGR | Net Profit Growth (YoY) |
|---|---|---|---|---|---|
| ONGC | 6,21,019.28 | 49,793.10 | 5.64% | 0.25% | 29.91% |
| IOC | 7,88,578.42 | 43,677.32 | 7.41% | 14.15% | 216.76% |
| GIC Re | 54,356.64 | 9,000.49 | 2.24% | 42.24% | 29.06% |
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Institutional Holding in ONGC, IOC and GIC Re
Institutional holding shows who is backing these stocks trading below book value alongside the promoter. The table uses the latest reported quarter for each. ONGC has the deepest institutional backing, with FII and DII together holding 27.32% as of June 2026. Domestic institutions increased their holding over the past year in GIC Re (from 13.30% to 17.73%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| ONGC | 58.89% | 8.01% | 19.31% | 13.79% | June 2026 |
| IOC | 51.50% | 9.08% | 9.62% | 29.80% | June 2026 |
| GIC Re | 77.40% | 2.43% | 17.73% | 2.44% | June 2026 |
Risks to Weigh in Stocks Trading Below Book Value
Being careful with stocks trading below book value means looking at what can slow the story as well as what can speed it up. Four points matter most:
- A low price to book can reflect cyclical earnings.
- Check the quality of assets and the return on equity.
- 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 Book Value
Picking from stocks trading below book value 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 (7.16 to 15.10) and ask whether the growth rate justifies any gap.
- Track the price to book ratio, net 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 book value, ONGC stands out for the largest market cap at Rs 2,83,245 crore, IOC for the highest return on equity at 19.18% and GIC Re for the fastest profit growth, 42.24% 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 book value 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 Book Value to Watch
Which are the best stocks trading below book value to watch for multibagger potential?
Ans. ONGC, IOC and GIC Re are the 3 names this list highlights, with market caps of Rs 2,83,245 crore, Rs 1,81,529 crore and Rs 57,185 crore respectively. ONGC is notable for the largest market cap at Rs 2,83,245 crore. IOC stands out for the highest return on equity at 19.18%. GIC Re offers the fastest profit growth, 42.24% a year since FY22. These are watchlist names for stocks trading below book value, 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 book value depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can GIC Re become a multibagger from here?
Ans. GIC Re has a market cap of Rs 57,185 crore. A multibagger outcome in stocks trading below book value requires earnings to keep growing faster than the market for several years. Net profit has compounded at 42.24% a year since FY22, and FY26 revenue rose 8.88%. At a PE of 6.44 against an industry PE of 10.47, valuation should be checked against that growth before investing.
What is the market cap of ONGC, IOC and GIC Re?
Ans. As of 16 October 2026, ONGC has a market cap of Rs 2,83,245 crore, IOC has a market cap of Rs 1,81,529 crore and GIC Re has a market cap of Rs 57,185 crore. ONGC is the largest of the group. 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 book value.
What are the risks of investing in stocks trading below book value?
Ans. The main risks are cyclical earnings, commodity or rate swings and a valuation that stays low 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 IOC trading below its industry PE?
Ans. IOC trades at a PE of 5.08 against an industry PE of 15.10. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 14.15% a year since FY22 and FY26 revenue rose 3.54%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in ONGC, IOC and GIC Re?
Ans. As of the latest reported quarter, FII and DII together hold 27.32% of ONGC (8.01% and 19.31%), 18.70% of IOC (9.08% and 9.62%) and 20.16% of GIC Re (2.43% and 17.73%). Rising institutional holding is a useful signal in stocks trading below book value, though it should be read with earnings trends rather than on its own.
