4 Top Stocks With PE Between 20 and 25 to Watch for Future Multibagger Potential: Bajaj Auto, Cholamandalam, Oberoi Realty and Sundaram Finance
- October 21, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Bajaj Auto Rs 10,287. Cholamandalam Rs 1,553. Oberoi Realty Rs 1,676.40. Sundaram Finance Rs 4,217. Market caps from Rs 47,039 crore to Rs 2.81 lakh crore. Data as of 20 Oct 2026.
Quick Answer
Bajaj Auto, Cholamandalam, Oberoi Realty and Sundaram Finance are the 4 picks in this stocks with PE between 20 and 25 watchlist, with market caps between Rs 47,039 crore and Rs 2.81 lakh crore. Bajaj Auto stands out for the highest return on equity at 27.67%, while Cholamandalam offers the fastest profit growth, 24.75% a year since FY22. PE ratios run from 21.19 to 24.36, so compare each one with its industry PE before investing. All figures are as of 20 October 2026.
Stocks with PE between 20 and 25 to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Bajaj Auto, Cholamandalam, Oberoi Realty and Sundaram Finance meet that test, with market caps from Rs 47,039 crore to Rs 2.81 lakh crore and Bajaj Auto offering the highest return on equity at 27.67%. Each of these companies trades at a PE ratio between 20 and 25, and net profit grew by at least 10 per cent in FY26 and rose in the latest quarter.
This list covers companies with a PE ratio between 20 and 25, FY26 profit growth of at least 10 per cent and rising profit in the latest quarter, ranked by market capitalisation. The companies here range from midcaps to largecaps in size. Investors screening stocks with PE between 20 and 25 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 Stocks With PE Between 20 and 25 and Why Do They Attract Multibagger Interest?
Stocks with PE between 20 and 25 are shares that trade close to the long-run market average multiple while profit keeps growing. The four here cover motorcycles, vehicle finance, real estate and financial services.
A PE in this band leaves room for gains if earnings keep growing and the multiple holds. For stocks with PE between 20 and 25, check that growth is steady enough to support it. Investors researching stocks with PE between 20 and 25 get a fuller picture by reading growth and valuation together. The table below lines up stocks with PE between 20 and 25 on size, growth and valuation, using complete FY26 and latest quarter numbers. Past performance does not guarantee future returns, so use stocks with PE between 20 and 25 as a starting point for your own research.
Stocks With PE Between 20 and 25 at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 20 October 2026. Sundaram Finance has the lowest PE of the group at 21.19, while Bajaj Auto posts the highest return on equity at 27.67%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Bajaj Auto | 10,287 | 2,81,374 | 24.36 | 23.82 | 27.67% | 7.25 | 8,605.00 to 12,470.00 |
| Cholamandalam Investment and Finance | 1,553 | 1,35,393 | 23.54 | 17.68 | 17.18% | 4.42 | 1,299.40 to 1,952.50 |
| Oberoi Realty | 1,676.40 | 61,940 | 23.56 | 31.94 | 13.99% | 3.46 | 1,391.20 to 1,986.10 |
| Sundaram Finance | 4,217 | 47,039 | 21.19 | 17.70 | 13.82% | 3.16 | 4,000.00 to 5,642.00 |
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%.
Cholamandalam: 24.75% Profit CAGR Since FY22
Cholamandalam Investment and Finance, part of the Murugappa Group, offers vehicle finance, home loans and loans against property. It reported FY26 total income of Rs 31,538.73 crore, up 20.60% year on year, and net profit of Rs 5,228.88 crore, up 22.74%. Net profit has compounded at 24.75% a year since FY22, while total income has grown 32.50% a year.
The stock trades at a PE of 23.54 against an industry PE of 17.68, with a return on equity of 17.18%. In the June 2026 quarter, total income rose 21.81% to Rs 8,956.68 crore and net profit grew 45.56% to Rs 1,656.22 crore. The share price has gained 165.09% over five years. Domestic institutions raised their holding from 16.06% in June 2025 to 20.62% in June 2026.
Oberoi Realty: 24.40% Profit CAGR Since FY22
Oberoi Realty develops premium residential, office, retail and hotel projects, mainly in Mumbai. It reported FY26 revenue of Rs 6,304.27 crore, up 15.16% year on year, and net profit of Rs 2,507.43 crore, up 12.67%. Net profit has compounded at 24.40% a year since FY22, while revenue has grown 23.02% a year. Operating margin was 60.69% in FY26. The debt-to-equity ratio is 0.16.
In the June 2026 quarter, revenue rose 26.79% to Rs 1,361.69 crore and net profit grew 29.02% to Rs 543.51 crore. The share price has gained 93.04% over five years. Domestic institutions raised their holding from 10.80% in June 2025 to 14.83% in June 2026. The stock trades at a PE of 23.56 against an industry PE of 31.94, below the sector average, with a return on equity of 13.99%.
Sundaram Finance: Quarterly Profit Up 38.14%
Sundaram Finance is one of India’s oldest non-banking finance companies, with a strong record in commercial vehicle and car loans. It reported FY26 revenue of Rs 9,873.12 crore, up 15.30% year on year, and net profit of Rs 2,005.40 crore, up 10.62%. Net profit has compounded at 17.10% a year since FY22, while revenue has grown 17.69% a year. Operating margin was 77.70% in FY26.
The stock trades at a PE of 21.19 against an industry PE of 17.70, with a return on equity of 13.82%. In the June 2026 quarter, revenue rose 12.76% to Rs 2,653.34 crore and net profit grew 38.14% to Rs 568.86 crore. The share price has gained 68.83% over five years. Domestic institutions raised their holding from 7.22% in June 2025 to 8.00% in June 2026.
Stocks With PE Between 20 and 25: Financial Comparison on Growth and Margins
The table compares scale and growth across these stocks with PE between 20 and 25. 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 |
|---|---|---|---|---|---|
| Bajaj Auto | 65,087.22 | 10,574.50 | 24.05% | 17.26% | 14.44% |
| Cholamandalam | 31,538.73 | 5,228.88 | 20.60% | 32.50% | 24.75% |
| Oberoi Realty | 6,304.27 | 2,507.43 | 15.16% | 23.02% | 24.40% |
| Sundaram Finance | 9,873.12 | 2,005.40 | 15.30% | 17.69% | 17.10% |
Check the Univest Screener for live data on these stocks with PE between 20 and 25
Institutional Holding in Bajaj Auto, Cholamandalam, Oberoi Realty and Sundaram Finance
Institutional holding shows who is backing these stocks with PE between 20 and 25 alongside the promoter. The table uses the latest reported quarter for each. Cholamandalam has the deepest institutional backing, with FII and DII together holding 45.07% as of June 2026. Domestic institutions increased their holding over the past year in Bajaj Auto (from 12.09% to 13.54%), Cholamandalam (from 16.06% to 20.62%), Oberoi Realty (from 10.80% to 14.83%) and Sundaram Finance (from 7.22% to 8.00%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Bajaj Auto | 55.01% | 9.01% | 13.54% | 22.44% | June 2026 |
| Cholamandalam | 49.22% | 24.45% | 20.62% | 5.70% | June 2026 |
| Oberoi Realty | 67.70% | 15.11% | 14.83% | 2.36% | June 2026 |
| Sundaram Finance | 37.21% | 18.58% | 8.00% | 36.21% | June 2026 |
Risks to Weigh in Stocks With PE Between 20 and 25
Being careful with stocks with PE between 20 and 25 means looking at what can slow the story as well as what can speed it up. Four points matter most:
- Past growth may not repeat.
- Share prices can move sharply in either direction.
- Valuation: Cholamandalam trades at a PE of 23.54 against an industry PE of 17.68, 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 Stocks With PE Between 20 and 25
Picking from stocks with PE between 20 and 25 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 (17.68 to 31.94) and ask whether the growth rate justifies any gap.
- Track net profit growth, the operating margin and the return on equity in every quarterly result.
- Stagger entries across quarters and review institutional holding every reporting season.
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Conclusion
Among stocks with PE between 20 and 25, Bajaj Auto stands out for the highest return on equity at 27.67%, Cholamandalam for the fastest profit growth, 24.75% a year since FY22, Oberoi Realty for 15.16% revenue growth in FY26 and Sundaram Finance for the lowest PE of the group at 21.19. 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 with PE between 20 and 25 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 With PE Between 20 and 25 to Watch
Which are the best stocks with PE between 20 and 25 to watch for multibagger potential?
Ans. Bajaj Auto, Cholamandalam, Oberoi Realty and Sundaram Finance are the 4 names this list highlights, with market caps of Rs 2,81,374 crore, Rs 1,35,393 crore, Rs 61,940 crore and Rs 47,039 crore respectively. Bajaj Auto is notable for the highest return on equity at 27.67%. Cholamandalam stands out for the fastest profit growth, 24.75% a year since FY22. Oberoi Realty offers 15.16% revenue growth in FY26. Sundaram Finance brings the lowest PE of the group at 21.19. These are watchlist names for stocks with PE between 20 and 25, 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 stocks with PE between 20 and 25 depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Cholamandalam become a multibagger from here?
Ans. Cholamandalam has already gained 165.09% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in stocks with PE between 20 and 25 requires earnings to keep growing faster than the market for several years. Net profit has compounded at 24.75% a year since FY22, and FY26 revenue rose 20.60%. At a PE of 23.54 against an industry PE of 17.68, valuation should be checked against that growth before investing.
What is the market cap of Bajaj Auto, Cholamandalam, Oberoi Realty and Sundaram Finance?
Ans. As of 20 October 2026, Bajaj Auto has a market cap of Rs 2,81,374 crore, Cholamandalam has a market cap of Rs 1,35,393 crore, Oberoi Realty has a market cap of Rs 61,940 crore and Sundaram Finance has a market cap of Rs 47,039 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 stocks with PE between 20 and 25.
What are the risks of investing in stocks with PE between 20 and 25?
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. Cholamandalam trades at a PE of 23.54 against an industry PE of 17.68, so earnings growth needs to hold up.
Why is Cholamandalam trading at a PE of 23.54?
Ans. Cholamandalam’s PE of 23.54 compares with an industry PE of 17.68. The market is paying a premium for a return on equity of 17.18%, profit growth of 24.75% a year since FY22 and latest-quarter profit growth of 45.56%, which also means the stock is more sensitive if growth slows. Investors in stocks with PE between 20 and 25 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, Cholamandalam, Oberoi Realty and Sundaram Finance?
Ans. As of the latest reported quarter, FII and DII together hold 22.55% of Bajaj Auto (9.01% and 13.54%), 45.07% of Cholamandalam (24.45% and 20.62%), 29.94% of Oberoi Realty (15.11% and 14.83%) and 26.58% of Sundaram Finance (18.58% and 8.00%). Rising institutional holding is a useful signal in stocks with PE between 20 and 25, though it should be read with earnings trends rather than on its own.
