4 Largecap Low PE Stocks With Operating Margin Above 25 Per Cent to Watch for Future Multibagger Potential: TCS, Infosys, NTPC and Hindustan Zinc
- October 22, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
TCS Rs 2,529. Infosys Rs 1,168. NTPC Rs 303. Hindustan Zinc Rs 525. Market caps from Rs 2.24 lakh crore to Rs 8.33 lakh crore. Data as of 21 Oct 2026.
Quick Answer
TCS, Infosys, NTPC and Hindustan Zinc are the 4 picks in this low PE stocks with operating margin above 25 per cent watchlist, with market caps between Rs 2.24 lakh crore and Rs 8.33 lakh crore. TCS stands out for the largest market cap at Rs 8,32,884 crore, while Infosys offers a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.10. PE ratios run from 10.75 to 16.06, so compare each one with its industry PE before investing. All figures are as of 21 October 2026.
Low PE stocks with operating margin above 25 per cent to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. TCS, Infosys, NTPC and Hindustan Zinc meet that test, with market caps from Rs 2.24 lakh crore to Rs 8.33 lakh crore and TCS offering the largest market cap at Rs 8,32,884 crore. Each of these companies has a PE ratio below 20 and an FY26 operating margin above 25 per cent, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a PE ratio below 20 and an FY26 operating margin above 25 per cent, rising profit in FY26 and the latest quarter, market capitalisation above Rs 1,00,000 crore, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap above Rs 1 lakh crore. Investors screening low PE stocks with operating margin above 25 per cent usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 21 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Low PE Stocks With Operating Margin Above 25 Per Cent and Why Do They Attract Multibagger Interest?
Low PE stocks with operating margin above 25 per cent are shares of efficient businesses that keep a large share of each sale as operating profit and trade at low multiples. The four here cover two IT majors, power generation and zinc.
High margins at a low multiple leave room for the valuation to improve. For low PE stocks with operating margin above 25 per cent, rising profit adds to the case. Whichever way you read low PE stocks with operating margin above 25 per cent, the common thread is rising profit backed by complete financial data. Each of low PE stocks with operating margin above 25 per cent also has complete FY26 and latest quarter figures. A sensible way to study low PE stocks with operating margin above 25 per cent is to look at profit growth, returns and valuation side by side. Below, each of low PE stocks with operating margin above 25 per cent gets its own breakdown of growth, returns and valuation. Treat low PE stocks with operating margin above 25 per cent as a research list, since share prices and rankings change with every earnings season.
Low PE Stocks With Operating Margin Above 25 Per Cent at a Glance: Price, Market Cap, PE and ROE
Prices are closing prices as of 21 October 2026. NTPC has the lowest PE of the group at 10.75, while Hindustan Zinc posts the highest return on equity at 61.13%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Debt to Equity | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Tata Consultancy Services | 2,529 | 8,32,884 | 16.06 | 18.27 | 43.37% | 0.10 | 1,976.80 to 3,350.00 |
| Infosys | 1,168 | 4,41,906 | 14.57 | 18.27 | 33.24% | 0.10 | 980.40 to 1,728.00 |
| NTPC | 303 | 3,04,475 | 10.75 | 21.61 | 13.31% | 1.33 | 303.00 to 414.40 |
| Hindustan Zinc | 525 | 2,23,984 | 13.12 | 12.27 | 61.13% | 0.39 | 412.25 to 609.05 |
TCS: Return on Equity of 43.37%
TCS is India’s largest IT services company by market capitalisation and runs large AI and data practices for global clients. It reported FY26 revenue of Rs 2,71,423 crore, up 4.68% year on year, and net profit of Rs 49,454 crore, up 1.35%. Net profit has compounded at 6.49% a year since FY22, while revenue has grown 8.51% a year. Operating margin was 27.07% in FY26. The debt-to-equity ratio is 0.10, which keeps interest costs low.
In the September 2026 quarter, revenue rose 11.79% to Rs 74,525 crore and net profit grew 14.86% to Rs 13,934 crore. Domestic institutions raised their holding from 12.01% in June 2025 to 13.47% in June 2026. The stock trades at a PE of 16.06 against an industry PE of 18.27, below the sector average, with a return on equity of 43.37%. The dividend yield is 4.78%.
Infosys: Return on Equity of 33.24%
Infosys is a large IT services and consulting company that has built an AI-first offering around its Topaz platform. It reported FY26 revenue of Rs 1,82,972 crore, up 9.83% year on year, and net profit of Rs 29,474 crore, up 10.18%. Net profit has compounded at 7.41% a year since FY22, while revenue has grown 10.23% a year. Operating margin was 25.36% in FY26. The debt-to-equity ratio is 0.10, which keeps interest costs low.
The stock trades at a PE of 14.57 against an industry PE of 18.27, below the sector average, with a return on equity of 33.24%. The dividend yield is 4.40%. In the June 2026 quarter, revenue rose 13.56% to Rs 49,195 crore and net profit grew 12.29% to Rs 7,775 crore. Domestic institutions raised their holding from 39.60% in June 2025 to 42.96% in June 2026.
NTPC: Five-Year Gain of 110.40%
NTPC is India’s largest power generation company and is growing its renewable energy portfolio. It reported FY26 revenue of Rs 1,89,798.56 crore and net profit of Rs 30,009.98 crore, up 48.19%. Net profit has compounded at 18.01% a year since FY22, while revenue has grown 8.89% a year. Operating margin was 32.45% in FY26.
In the June 2026 quarter, revenue rose 6.94% to Rs 51,141.51 crore and net profit grew 12.90% to Rs 6,896.44 crore. The share price has gained 110.40% over five years. Domestic institutions raised their holding from 28.92% in June 2025 to 29.44% in June 2026. The stock trades at a PE of 10.75 against an industry PE of 21.61, below the sector average, with a return on equity of 13.31%. The dividend yield is 2.87%.
Hindustan Zinc: Return on Equity of 61.13%
Hindustan Zinc is among the world’s largest integrated zinc producers and also produces lead and silver. It reported FY26 revenue of Rs 41,934 crore, up 19.59% year on year, and net profit of Rs 13,832 crore, up 33.60%. Net profit has compounded at 9.48% a year since FY22, while revenue has grown 8.15% a year. Operating margin was 56.75% in FY26. The debt-to-equity ratio is 0.39.
The stock trades at a PE of 13.12 against an industry PE of 12.27, with a return on equity of 61.13%. The dividend yield is 1.89%. In the June 2026 quarter, revenue rose 74.70% to Rs 14,063 crore and net profit grew 144.81% to Rs 5,469 crore. Foreign investors raised their holding from 1.31% in September 2025 to 2.36% in September 2026.
Low PE Stocks With Operating Margin Above 25 Per Cent: Financial Comparison on Growth and Margins
The table compares scale and growth across these low PE stocks with operating margin above 25 per cent. 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 | Latest Quarter Revenue Growth | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| TCS | 2,71,423 | 49,454 | 8.51% | 6.49% | 11.79% | 27.53% |
| Infosys | 1,82,972 | 29,474 | 10.23% | 7.41% | 13.56% | 25.71% |
| NTPC | 1,89,798.56 | 30,009.98 | 8.89% | 18.01% | 6.94% | 35.04% |
| Hindustan Zinc | 41,934 | 13,832 | 8.15% | 9.48% | 74.70% | 64.19% |
Institutional Holding in TCS, Infosys, NTPC and Hindustan Zinc
Institutional holding shows who is backing these low PE stocks with operating margin above 25 per cent alongside the promoter. The table uses the latest reported quarter for each. Infosys has the deepest institutional backing, with FII and DII together holding 70.05% as of June 2026. Domestic institutions increased their holding over the past year in TCS (from 12.01% to 13.47%), Infosys (from 39.60% to 42.96%) and NTPC (from 28.92% to 29.44%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| TCS | 71.77% | 9.06% | 13.47% | 5.70% | June 2026 |
| Infosys | 13.82% | 27.09% | 42.96% | 16.13% | June 2026 |
| NTPC | 51.10% | 16.30% | 29.44% | 3.15% | June 2026 |
| Hindustan Zinc | 60.71% | 2.36% | 4.85% | 32.07% | September 2026 |
Risks to Weigh in Low PE Stocks With Operating Margin Above 25 Per Cent
Being careful with low PE stocks with operating margin above 25 per cent 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: Hindustan Zinc trades at a PE of 13.12 against an industry PE of 12.27, 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 Low PE Stocks With Operating Margin Above 25 Per Cent
Picking from low PE stocks with operating margin above 25 per cent 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 (12.27 to 21.61) 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 low PE stocks with operating margin above 25 per cent, TCS stands out for the largest market cap at Rs 8,32,884 crore, Infosys for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.10, NTPC for the fastest profit growth, 18.01% a year since FY22 and Hindustan Zinc for the highest return on equity at 61.13%. 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 low PE stocks with operating margin above 25 per cent 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 Low PE Stocks With Operating Margin Above 25 Per Cent to Watch
Which are the best low PE stocks with operating margin above 25 per cent to watch for multibagger potential?
Ans. TCS, Infosys, NTPC and Hindustan Zinc are the 4 names this list highlights, with market caps of Rs 8,32,884 crore, Rs 4,41,906 crore, Rs 3,04,475 crore and Rs 2,23,984 crore respectively. TCS is notable for the largest market cap at Rs 8,32,884 crore. Infosys stands out for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.10. NTPC offers the fastest profit growth, 18.01% a year since FY22. Hindustan Zinc brings the highest return on equity at 61.13%. These are watchlist names for low PE stocks with operating margin above 25 per cent, not recommendations, so match each one to your own risk profile and time horizon.
Is Hindustan Zinc a good stock for long-term investors?
Ans. Hindustan Zinc has a return on equity of 61.13%, a PE of 13.12 against an industry PE of 12.27 and a market cap of Rs 2,23,984 crore. Net profit has compounded at 9.48% a year since FY22, and FY26 revenue rose 19.59% while June 2026 quarter net profit grew 144.81%. Long-term returns in low PE stocks with operating margin above 25 per cent depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can NTPC become a multibagger from here?
Ans. NTPC has already gained 110.40% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in low PE stocks with operating margin above 25 per cent requires earnings to keep growing faster than the market for several years. Net profit has compounded at 18.01% a year since FY22, and June 2026 quarter net profit grew 12.90%. At a PE of 10.75 against an industry PE of 21.61, valuation should be checked against that growth before investing.
What is the market cap of TCS, Infosys, NTPC and Hindustan Zinc?
Ans. As of 21 October 2026, TCS has a market cap of Rs 8,32,884 crore, Infosys has a market cap of Rs 4,41,906 crore, NTPC has a market cap of Rs 3,04,475 crore and Hindustan Zinc has a market cap of Rs 2,23,984 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 low PE stocks with operating margin above 25 per cent.
What are the risks of investing in low PE stocks with operating margin above 25 per cent?
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. Hindustan Zinc trades at a PE of 13.12 against an industry PE of 12.27, so earnings growth needs to hold up.
Is NTPC trading below its industry PE?
Ans. NTPC trades at a PE of 10.75 against an industry PE of 21.61. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 18.01% a year since FY22 and June 2026 quarter net profit grew 12.90%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in TCS, Infosys, NTPC and Hindustan Zinc?
Ans. As of the latest reported quarter, FII and DII together hold 22.53% of TCS (9.06% and 13.47%), 70.05% of Infosys (27.09% and 42.96%), 45.74% of NTPC (16.30% and 29.44%) and 7.21% of Hindustan Zinc (2.36% and 4.85%). Rising institutional holding is a useful signal in low PE stocks with operating margin above 25 per cent, though it should be read with earnings trends rather than on its own.
