4 Largecap Undervalued Stocks to Watch for Future Multibagger Potential: LIC, Infosys, M&M and HAL
- October 23, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
LIC Rs 387.50. Infosys Rs 1,153.35. M&M Rs 2,864.10. HAL Rs 4,875. Market caps from Rs 3.33 lakh crore to Rs 4.98 lakh crore. Data as of 22 Oct 2026.
Quick Answer
LIC, Infosys, M&M and HAL are the 4 picks in this undervalued stocks watchlist, with market caps between Rs 3.33 lakh crore and Rs 4.98 lakh crore. LIC stands out for the fastest profit growth, 93.19% a year since FY22, while Infosys offers the highest return on equity at 33.24%. PE ratios run from 8.30 to 35.73, so compare each one with its industry PE before investing. All figures are as of 22 October 2026.
Undervalued stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. LIC, Infosys, M&M and HAL meet that test, with market caps from Rs 3.33 lakh crore to Rs 4.98 lakh crore and LIC offering the fastest profit growth, 93.19% a year since FY22. Each of these companies has a PE ratio at least 20 per cent below the industry PE, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a PE ratio at least 20 per cent below the industry PE, 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 undervalued stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 22 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Undervalued Stocks and Why Do They Attract Multibagger Interest?
Undervalued stocks are shares of companies that trade at a clear discount to their industry on earnings. The four here cover insurance, IT services, automobiles and defence aerospace.
Trading below the industry multiple while profit rises is the classic value setup. For undervalued stocks, rising profit adds to the case. With undervalued stocks, comparing valuation, growth and balance sheet strength together works better than relying on one number. Every company in the table below passed a rising-profit check, and the figures for undervalued stocks are complete. Read each company’s latest results and exchange filings before acting on undervalued stocks.
Undervalued Stocks at a Glance: Price, Market Cap, PE and ROE
Prices are closing prices as of 22 October 2026. LIC has the lowest PE of the group at 8.30, while Infosys posts the highest return on equity at 33.24%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Debt to Equity | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Life Insurance Corporation of India | 387.50 | 4,98,410 | 8.30 | 10.47 | 32.53% | 0.00 | 360.75 to 468.48 |
| Infosys | 1,153.35 | 4,41,906 | 14.57 | 18.27 | 33.24% | 0.10 | 980.40 to 1,728.00 |
| Mahindra & Mahindra | 2,864.10 | 3,48,064 | 17.19 | 23.82 | 18.37% | 1.44 | 2,744.30 to 3,839.90 |
| Hindustan Aeronautics | 4,875 | 3,33,050 | 35.73 | 48.59 | 22.21% | 0.00 | 3,479.10 to 5,149.90 |
LIC: 93.19% Profit CAGR Since FY22
LIC is India’s largest life insurer and one of the biggest institutional investors in the stock market, with a vast agent network across the country. It reported FY26 revenue of Rs 9,90,211.25 crore, up 10.23% year on year, and net profit of Rs 57,453.15 crore, up 18.90%. Net profit has compounded at 93.19% a year since FY22, while revenue has grown 7.96% a year. Operating margin was 5.51% in FY26. The debt-to-equity ratio is 0.00, which keeps interest costs low.
In the June 2026 quarter, revenue rose 6.97% to Rs 2,41,166.45 crore and net profit grew 23.98% to Rs 13,584.25 crore. Domestic institutions raised their holding from 1.36% in September 2025 to 6.17% in September 2026. The stock trades at a PE of 8.30 against an industry PE of 10.47, below the sector average, with a return on equity of 32.53%.
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.
M&M: 26.58% Profit CAGR Since FY22
Mahindra & Mahindra is one of the largest SUV makers in India and the country’s largest tractor maker, with financial services and electric vehicles in its portfolio. It reported FY26 revenue of Rs 2,02,084.34 crore, up 25.21% year on year, and net profit of Rs 18,621.71 crore, up 32.32%. Net profit has compounded at 26.58% a year since FY22, while revenue has grown 22.04% a year. Operating margin was 21.19% in FY26.
In the June 2026 quarter, revenue rose 27.47% to Rs 59,203.60 crore and net profit grew 37.04% to Rs 5,997.56 crore. The share price has gained 220.52% over five years. Domestic institutions raised their holding from 29.59% in June 2025 to 32.65% in June 2026. The stock trades at a PE of 17.19 against an industry PE of 23.82, below the sector average, with a return on equity of 18.37%.
HAL: Return on Equity of 22.21%
Hindustan Aeronautics is India’s state-owned aerospace company that designs, makes and services fighter jets, helicopters, engines and avionics. It reported FY26 revenue of Rs 36,787.95 crore, up 9.68% year on year, and net profit of Rs 9,115.52 crore, up 8.98%. Net profit has compounded at 15.74% a year since FY22, while revenue has grown 9.48% a year. Operating margin was 40.89% in FY26. The debt-to-equity ratio is 0.00, which keeps interest costs low.
The stock trades at a PE of 35.73 against an industry PE of 48.59, below the sector average, with a return on equity of 22.21%. In the June 2026 quarter, revenue rose 15.26% to Rs 6,415.41 crore and net profit grew 14.88% to Rs 1,589.66 crore. The share price has gained 607.71% over five years. Domestic institutions raised their holding from 8.71% in September 2025 to 12.56% in September 2026.
Undervalued Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these undervalued 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 | 4-Year Net Profit CAGR | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| LIC | 9,90,211.25 | 57,453.15 | 10.23% | 7.96% | 93.19% | 12.00% |
| Infosys | 1,82,972 | 29,474 | 9.83% | 10.23% | 7.41% | 25.71% |
| M&M | 2,02,084.34 | 18,621.71 | 25.21% | 22.04% | 26.58% | 20.77% |
| HAL | 36,787.95 | 9,115.52 | 9.68% | 9.48% | 15.74% | 44.22% |
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Institutional Holding in LIC, Infosys, M&M and HAL
Institutional holding shows who is backing these undervalued stocks 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 LIC (from 1.36% to 6.17%), Infosys (from 39.60% to 42.96%), M&M (from 29.59% to 32.65%) and HAL (from 8.71% to 12.56%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| LIC | 90.00% | 1.55% | 6.17% | 2.28% | September 2026 |
| Infosys | 13.82% | 27.09% | 42.96% | 16.13% | June 2026 |
| M&M | 18.45% | 34.89% | 32.65% | 14.01% | June 2026 |
| HAL | 71.64% | 9.42% | 12.56% | 6.38% | September 2026 |
Risks to Weigh in Undervalued Stocks
Being careful with undervalued stocks 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: A low PE can also reflect slower growth, so compare each PE with the growth rate instead of reading it alone.
- Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between Undervalued Stocks
Picking from undervalued 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 (10.47 to 48.59) 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 undervalued stocks, LIC stands out for the fastest profit growth, 93.19% a year since FY22, Infosys for the highest return on equity at 33.24%, M&M for the strongest latest-quarter profit growth at 37.04% and HAL for the biggest five-year price gain at 607.71%. 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 undervalued 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 Undervalued Stocks to Watch
Which are the best undervalued stocks to watch for multibagger potential?
Ans. LIC, Infosys, M&M and HAL are the 4 names this list highlights, with market caps of Rs 4,98,410 crore, Rs 4,41,906 crore, Rs 3,48,064 crore and Rs 3,33,050 crore respectively. LIC is notable for the fastest profit growth, 93.19% a year since FY22. Infosys stands out for the highest return on equity at 33.24%. M&M offers the strongest latest-quarter profit growth at 37.04%. HAL brings the biggest five-year price gain at 607.71%. These are watchlist names for undervalued stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Infosys a good stock for long-term investors?
Ans. Infosys has a return on equity of 33.24%, a PE of 14.57 against an industry PE of 18.27 and a market cap of Rs 4,41,906 crore. Net profit has compounded at 7.41% a year since FY22, and FY26 revenue rose 9.83% while June 2026 quarter net profit grew 12.29%. Long-term returns in undervalued stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can LIC become a multibagger from here?
Ans. LIC has a market cap of Rs 4,98,410 crore. A multibagger outcome in undervalued stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 93.19% a year since FY22, and FY26 revenue rose 10.23%. At a PE of 8.30 against an industry PE of 10.47, valuation should be checked against that growth before investing.
What is the market cap of LIC, Infosys, M&M and HAL?
Ans. As of 22 October 2026, LIC has a market cap of Rs 4,98,410 crore, Infosys has a market cap of Rs 4,41,906 crore, M&M has a market cap of Rs 3,48,064 crore and HAL has a market cap of Rs 3,33,050 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 undervalued stocks.
What are the risks of investing in undervalued 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. Comparing each PE with growth gives a fuller picture than the PE alone.
Is LIC trading below its industry PE?
Ans. LIC trades at a PE of 8.30 against an industry PE of 10.47. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 93.19% a year since FY22 and FY26 revenue rose 10.23%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in LIC, Infosys, M&M and HAL?
Ans. As of the latest reported quarter, FII and DII together hold 7.72% of LIC (1.55% and 6.17%), 70.05% of Infosys (27.09% and 42.96%), 67.54% of M&M (34.89% and 32.65%) and 21.98% of HAL (9.42% and 12.56%). Rising institutional holding is a useful signal in undervalued stocks, though it should be read with earnings trends rather than on its own.
