4 Top High ROE and High Growth Stocks to Watch for Future Multibagger Potential: Bajaj Auto, Persistent Systems, Lupin and Kalyan Jewellers
- October 21, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Bajaj Auto Rs 10,287. Persistent Systems Rs 5,690. Lupin Rs 1,939.20. Kalyan Jewellers Rs 551.30. Market caps from Rs 58,211 crore to Rs 2.81 lakh crore. Data as of 20 Oct 2026.
Quick Answer
Bajaj Auto, Persistent Systems, Lupin and Kalyan Jewellers are the 4 picks in this high ROE and high growth stocks watchlist, with market caps between Rs 58,211 crore and Rs 2.81 lakh crore. Bajaj Auto stands out for the highest return on equity at 27.67%, while Persistent Systems offers a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.06. PE ratios run from 16.14 to 48.32, so compare each one with its industry PE before investing. All figures are as of 20 October 2026.
High ROE and high growth stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Bajaj Auto, Persistent Systems, Lupin and Kalyan Jewellers meet that test, with market caps from Rs 58,211 crore to Rs 2.81 lakh crore and Bajaj Auto offering the highest return on equity at 27.67%. Each of these companies has a return on equity above 20 per cent, with FY26 revenue and net profit both growing by more than 20 per cent.
This list covers companies with a return on equity above 20 per cent and FY26 revenue and net profit growth above 20 per cent, 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 high ROE and high growth stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 20 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are High ROE and High Growth Stocks and Why Do They Attract Multibagger Interest?
High ROE and high growth stocks are shares of companies that earn high returns on shareholders’ money while also growing fast. The four here cover two-wheelers, pharmaceuticals, IT services and jewellery retail.
A high return on equity shows efficient use of capital, and fast growth shows demand for the product. Among high ROE and high growth stocks, companies that sustain both are the ones investors compare in high ROE and high growth stocks. This guide looks at high ROE and high growth stocks using FY26 results and the latest quarterly numbers. Every one of high ROE and high growth stocks below has complete, verifiable data.
High ROE and High Growth Stocks at a Glance: Price, Market Cap, PE and ROE
Prices are closing prices as of 20 October 2026. Lupin has the lowest PE of the group at 16.14, while Bajaj Auto posts the highest return on equity at 27.67%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Debt to Equity | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Bajaj Auto | 10,287 | 2,81,374 | 24.36 | 23.82 | 27.67% | 0.58 | 8,605.00 to 12,470.00 |
| Persistent Systems | 5,690 | 92,936 | 48.32 | 18.27 | 23.80% | 0.06 | 4,244.50 to 6,599.00 |
| Lupin | 1,939.20 | 89,592 | 16.14 | 36.42 | 23.76% | 0.29 | 1,900.00 to 2,529.50 |
| Kalyan Jewellers India | 551.30 | 58,211 | 40.58 | 46.75 | 21.41% | 0.97 | 327.05 to 648.95 |
Bajaj Auto: Revenue Up 24.05% in FY26
Bajaj Auto makes motorcycles, three-wheelers and electric two-wheelers, and has a large export business. It reported FY26 revenue of Rs 65,087.22 crore, up 24.05% year on year, and net profit of Rs 10,574.50 crore, up 44.37%. Net profit has compounded at 14.44% a year since FY22, while revenue has grown 17.26% a year. Operating margin was 25.06% in FY26.
In the June 2026 quarter, revenue rose 64.02% to Rs 22,376.69 crore and net profit grew 44.26% to Rs 3,188.75 crore. The share price has gained 165.89% over five years and 13.76% over the past year. Domestic institutions raised their holding from 12.09% in June 2025 to 13.54% in June 2026. The stock trades at a PE of 24.36 against an industry PE of 23.82, with a return on equity of 27.67%.
Persistent Systems: 28.20% Profit CAGR Since FY22
Persistent Systems is a digital engineering company that builds software products and AI-led platforms for clients in banking, healthcare and technology. It reported FY26 revenue of Rs 14,928.88 crore, up 23.62% year on year, and net profit of Rs 1,865.12 crore, up 33.21%. Net profit has compounded at 28.20% a year since FY22, while revenue has grown 26.37% a year. Operating margin was 19.57% in FY26. The debt-to-equity ratio is 0.06, which keeps interest costs low.
The stock trades at a PE of 48.32 against an industry PE of 18.27, with a return on equity of 23.80%. In the June 2026 quarter, revenue rose 29.09% to Rs 4,373.87 crore and net profit grew 13.67% to Rs 483.04 crore. The share price has gained 177.49% over five years. Domestic institutions raised their holding from 30.60% in September 2025 to 31.96% in September 2026.
Lupin: Revenue Up 26.76% in FY26
Lupin is a global pharmaceutical company with a large presence in the United States, India and other markets across generics, branded drugs and respiratory products. It reported FY26 revenue of Rs 29,038.95 crore, up 26.76% year on year, and net profit of Rs 5,355.47 crore, up 61.98%. Revenue has compounded at 14.98% a year since FY22. Operating margin was 31.06% in FY26. The debt-to-equity ratio is 0.29.
In the June 2026 quarter, revenue rose 32.45% to Rs 8,407.21 crore and net profit grew 16.01% to Rs 1,416.98 crore. The share price has gained 111.00% over five years. Foreign investors raised their holding from 21.25% in June 2025 to 22.42% in June 2026. The stock trades at a PE of 16.14 against an industry PE of 36.42, below the sector average, with a return on equity of 23.76%.
Kalyan Jewellers: 56.69% Profit CAGR Since FY22
Kalyan Jewellers is one of the largest jewellery retailers in India, with showrooms across India and the Middle East. It reported FY26 revenue of Rs 35,950.88 crore, up 42.72% year on year, and net profit of Rs 1,350.39 crore, up 89.09%. Net profit has compounded at 56.69% a year since FY22, while revenue has grown 34.90% a year. Operating margin was 7.62% in FY26.
The stock trades at a PE of 40.58 against an industry PE of 46.75, below the sector average, with a return on equity of 21.41%. In the June 2026 quarter, revenue rose 45.52% to Rs 10,644.67 crore and net profit grew 32.03% to Rs 348.67 crore. The share price has gained 618.28% over five years and 14.90% over the past year. Promoters hold 62.85%, which keeps ownership stable.
High ROE and High Growth Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these high ROE and high growth stocks. 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 | Latest Quarter Revenue Growth | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| Bajaj Auto | 65,087.22 | 10,574.50 | 24.05% | 17.26% | 64.02% | 24.99% |
| Persistent Systems | 14,928.88 | 1,865.12 | 23.62% | 26.37% | 29.09% | 17.84% |
| Lupin | 29,038.95 | 5,355.47 | 26.76% | 14.98% | 32.45% | 31.40% |
| Kalyan Jewellers | 35,950.88 | 1,350.39 | 42.72% | 34.90% | 45.52% | 6.50% |
Check the Univest Screener for live data on these high ROE and high growth stocks
Institutional Holding in Bajaj Auto, Persistent Systems, Lupin and Kalyan Jewellers
Institutional holding shows who is backing these high ROE and high growth stocks alongside the promoter. The table uses the latest reported quarter for each. Persistent Systems has the deepest institutional backing, with FII and DII together holding 52.75% as of September 2026. Domestic institutions increased their holding over the past year in Bajaj Auto (from 12.09% to 13.54%) and Persistent Systems (from 30.60% to 31.96%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Bajaj Auto | 55.01% | 9.01% | 13.54% | 22.44% | June 2026 |
| Persistent Systems | 30.29% | 20.79% | 31.96% | 16.96% | September 2026 |
| Lupin | 46.85% | 22.42% | 24.65% | 6.08% | June 2026 |
| Kalyan Jewellers | 62.85% | 13.83% | 14.41% | 8.91% | September 2026 |
Risks to Weigh in High ROE and High Growth Stocks
Being careful with high ROE and high growth stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:
- Growth rates are hard to sustain for long.
- Prices may already reflect strong results.
- Valuation: Persistent Systems trades at a PE of 48.32 against an industry PE of 18.27, so earnings need to keep growing to support the price.
- Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between High ROE and High Growth Stocks
Picking from high ROE and high growth stocks 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 (18.27 to 46.75) and ask whether the growth rate justifies any gap.
- Track the return on equity, revenue growth and net profit growth in every result.
- Stagger entries across quarters and review institutional holding every reporting season.
Download the Univest iOS App or Univest Android App to track Bajaj Auto, Persistent Systems, Lupin and Kalyan Jewellers live prices.
Conclusion
Among high ROE and high growth stocks, Bajaj Auto stands out for the highest return on equity at 27.67%, Persistent Systems for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.06, Lupin for the lowest PE of the group at 16.14 and Kalyan Jewellers for the fastest profit growth, 56.69% 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 high ROE and high growth stocks 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 High ROE and High Growth Stocks to Watch
Which are the best high ROE and high growth stocks to watch for multibagger potential?
Ans. Bajaj Auto, Persistent Systems, Lupin and Kalyan Jewellers are the 4 names this list highlights, with market caps of Rs 2,81,374 crore, Rs 92,936 crore, Rs 89,592 crore and Rs 58,211 crore respectively. Bajaj Auto is notable for the highest return on equity at 27.67%. Persistent Systems stands out for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.06. Lupin offers the lowest PE of the group at 16.14. Kalyan Jewellers brings the fastest profit growth, 56.69% a year since FY22. These are watchlist names for high ROE and high growth stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Bajaj Auto a good stock for long-term investors?
Ans. Bajaj Auto has a return on equity of 27.67%, a PE of 24.36 against an industry PE of 23.82 and a market cap of Rs 2,81,374 crore. Net profit has compounded at 14.44% a year since FY22, and FY26 revenue rose 24.05% while June 2026 quarter net profit grew 44.26%. Long-term returns in high ROE and high growth stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Kalyan Jewellers become a multibagger from here?
Ans. Kalyan Jewellers has already gained 618.28% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in high ROE and high growth stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 56.69% a year since FY22, and FY26 revenue rose 42.72%. At a PE of 40.58 against an industry PE of 46.75, valuation should be checked against that growth before investing.
What is the market cap of Bajaj Auto, Persistent Systems, Lupin and Kalyan Jewellers?
Ans. As of 20 October 2026, Bajaj Auto has a market cap of Rs 2,81,374 crore, Persistent Systems has a market cap of Rs 92,936 crore, Lupin has a market cap of Rs 89,592 crore and Kalyan Jewellers has a market cap of Rs 58,211 crore. Bajaj Auto 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 high ROE and high growth stocks.
What are the risks of investing in high ROE and high growth stocks?
Ans. The main risks are market swings, slower growth than expected and valuations that already reflect good news. Companies with strong balance sheets and steady earnings handle these better. Persistent Systems trades at a PE of 48.32 against an industry PE of 18.27, so earnings growth needs to hold up.
Why is Persistent Systems trading at a PE of 48.32?
Ans. Persistent Systems’ PE of 48.32 compares with an industry PE of 18.27. The market is paying a premium for a return on equity of 23.80%, profit growth of 28.20% a year since FY22 and latest-quarter profit growth of 13.67%, which also means the stock is more sensitive if growth slows. Investors in high ROE and high growth stocks who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.
How much do institutions hold in Bajaj Auto, Persistent Systems, Lupin and Kalyan Jewellers?
Ans. As of the latest reported quarter, FII and DII together hold 22.55% of Bajaj Auto (9.01% and 13.54%), 52.75% of Persistent Systems (20.79% and 31.96%), 47.07% of Lupin (22.42% and 24.65%) and 28.24% of Kalyan Jewellers (13.83% and 14.41%). Rising institutional holding is a useful signal in high ROE and high growth stocks, though it should be read with earnings trends rather than on its own.
